Friday, July 8, 2011

As tax hikes go, this one feels painless so far

So far.Gas prices climbed across a United States after a last few days of June, prodded by a slow increase in a cost of crude oil. And consumers have felt a push and pull of global forces from a Greek debt crisis to todays unemployment numbersThe average price for self-service regular clicked 3.3 cents higher in North Carolina between June 30 a last day of our old 32.5-cent tax and Friday after a week of a new state tax, an all-time-high 35 cents.Our next-door neighbors kept taxes down, though they saw siphon prices climb faster during a same period, from 3.8 cents in Virginia to 6.8 cents in Georgia, according to a Oil Price Information Service.Across a country, a national average price rose 5.3 cents.It doesnt make sense, to be honest with you, said Gary Harris, executive executive of N.C. Petroleum and Convenience Marketers, a gas retailers traffic group. Im not sure why a other states prices would have gone up some-more than ours did.Somehow, said Tom Crosby, vice president of a Charlotte-based AAA Carolinas motor club, North Carolina has absorbed a 2.5-cent tax increase very seamlessly. He doesnt know why.I cant explain that anomaly, Crosby said.Tar Heel motorists like to gripe that theyre gouged at every opportunity. But this time, maybe a marketplace forces are on our side.Its probably just a case of weak demand, said John Felmy, chief economist for a American Petroleum Institute, a Washington-based industry group. As a supplier, even if your taxes go up, you cant always pass along a cost, so your margins take a hit.Setting gas prices is part of Keith Bells job as senior vice president of fuels for The Pantry, a Cary-based convenience store chain. He said a tax increase really has kicked in, though consumers havent felt a full effect yet.The consumer gas marketplace is highly competitive, Bell said by e-mail. As such, competitive pricing pressures have largely delayed a full pass-through of a tax change.

No comments:

Post a Comment