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Oregon Road Conditions & Cams Email Story to a Friend September 2, 2005 A gas attendant at the Safeway store in the Medford Center fills up a line of vehicles Thursday afternoon. The unbranded station is just one of several in the valley that may see fuel-rationing measures put in place. Mail Tribune / Bob Pennell Gas dealers prep for fuel rationing Price for regular-grade fuel jumps over $3 at many Rogue Valley stations By DAMIAN MANN Mail Tribune As gas prices spilled over $3 a gallon for regular in Jackson County Thursday, the specter of rationing, long lines and even higher prices confronted motorists and businesses. "It’s reminiscent of the ’80s," said Rom Matthews of Vancouver, Wash., as he waited in line to fill up his diesel pickup at the Safeway gas station in Medford. "It’s backing up." Many stations in the valley reported brisk sales as motorists tried to fill up before prices shot up even further. Many stations posted prices of $3.06 in the Medford area, but two stations on Valley View Road in Ashland topped off at $3.10. "Yesterday we were slammed," Arco AM/PM cashier Tina Burchett said Thursday. "Today it’s a lot slower." The Eagle Point station posted one of the lowest prices in the valley at $2.91 for regular. Advertisement An attendant at the Astro station on Riverside Avenue in Medford said he’s been slammed all day. "I can’t talk right now," he said, declining to be identified. Steve O’Toole, executive director of the Oregon Petroleum Association, said the oil industry is notifying gas stations to get ready for reductions in fuel shipments. "The supply first will go to the branded stations," he said. These are stations such as Chevron or Union 76, which have contracts with oil companies. "The unbranded stations and diesel are going to have a tighter supply," he said, referring to stations at Costco, Albertsons or Safeway. O’Toole said the allotment of gas will vary from station to station, but he didn’t want to predict how much gas and diesel supplies could be cut back, citing concerns about alarming the public. "We want to do everything to prevent panic buying," he said. As an example of reducing supplies, O’Toole said one station might receive 90 percent of the previous month’s shipment. "It’s a way of rationing their supply," he said. Ken Hanks, manager of Phoenix Discount Gas, said he’s heard about the possibility of rationing, but added he’s not alarmed by it. "There might be a little bit of tightening, but I don’t think it’s going to be that much of a factor," he said. With one of the pipelines from the South back on line Thursday, Hanks thought the problem of supply will be resolved quickly by the oil companies. Hanks, who said it has been busier than normal this week, still had gas for just under $3 a gallon Thursday. But, he said, "it’ll be over $3 tomorrow." Local businesses are starting to feel the pinch from higher gas prices. Rick Samuelson of Judy’s Florist and Gifts in Central Point, Ashland and Grants Pass, said instead of taking five or six orders at a time to White City, his company will try to take eight or nine. "We are trying to be smart about how we take deliveries out," Samuelson said. So far Judy’s has not been severely impacted by gas prices and has not increased the price of flowers. But if gas prices remain high, he said, "We’ll have to look at it." On a personal level, Samuelson said, "For me and my family it’s huge." John Mihalyo, circulation director for the Mail Tribune, said the higher gas prices have had an impact on carriers who deliver the paper. "They’re feeling the pinch, and we’ve had some carrier turnover," he said. "It gets to the point where some of them say it’s not worth it to start my car in the morning." He said the newspaper is exploring ways to offset the high cost of delivery. JereKreischer, manager of Abby’s pizza in Central Point, said his food suppliers have been charging him small delivery charges from $1 to $4 to compensate for higher gas prices. "Most say they will go away when the prices come down," he said. Pizza delivery drivers use the company-provided Geo Metros that get 40-plus miles per gallon, he said. Kreischer said the extra gas expenses haven’t resulted in higher pizza prices so far, but he, like everyone else in the country, is keeping an eye on gas prices and supplies. "The worst that could happen is a shortage, of course," he said. Reach reporter Damian Mann at 776-4476, or e-mail Gas dealers prep for fuel rationing ">[email protected] . Mail Tribune Home | Local News | Sports | Business | Obituaries | Life | Opinion AP News | Archives | Site Map | Community | Classified Copyright © 1997-2005 Mail Tribune, Inc. All rights reserved. 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