Craig County gas stations compete for your money

By Mollie Halpern
Investigative Reporter
Published: July 28, 2008

Great news for those of you running on empty.

We are seeing some much needed relief at the pumps.

The national average for a gallon of regular is $3.96—the *lowest* since mid-May.

Virginia’s average has dropped to $3.87.  And if you fill up in Roanoke tonight, you’ll pay around $3.80 on average.

AAA predicts gas prices will fall an additional *25 cents* by Labor day.

The short distance between two Craig County gas stations makes a difference in what they’ll charge at their pumps.

Norma Frango, a customer from New castle says, “You can come to one and it’ll be a penny or two cheaper and then you go back out and the other one will be cheaper, so it’s kinda like a war between two gas stations.“

On this day, a gallon of regular unleaded is going for $3.57 at C&M grocery.  At J’s market, gas is two cents higher at $3.59

Mollie asks, “How does that impact you as a consumer? Will you go back and forth as well?“
Norma answers,“Sure whichever is the cheapest.“

That also means Norma will fill up in New Castle, rather than Roanoke where gas is going for 3.80.

Experts say the price of gas is falling, because demand is down.  That’s when the competition among retailers goes up.

Ken Crawley, the co-owner of C&M Grocery says, “With gas prices falling though we’ve been little bit more aggressive than we normally do… we try to stay competitive between one to two cents of each other.“

The owner of J’s market didn’t want to go on camera, but tells 10 On Your Side that while he wouldn’t call it a gas war, but that there’s definitely some friendly competition going on.  And so that he doesn’t get squeezed out of the competition, he keeps an eye on the prices at the pump down the street here at C&M grocery.

The owners at C & M grocery say the same holds true for them.

Crawley says, “We stay fairly competitive with each other—just good business relationship.“

Customers are reaping the rewards from that relationship between retailers.

Norma says, “You know it’s come down to either food or gas and so now we can buy more food.“

When gas stations compete, it’s the consumer who wins.

AAA says August is typically the heaviest automobile travel month of the year.

But, it does not expect a dramatic surge in driving and fuel consumption until prices fall back to $3.00 a gallon or less.