High Gas Prices Catch Up With Technology-Challenged Gas Stations
2008-05-16 13:13:48 By: Vittorio Hernandez

Washington, D.C. (AHN) - Reminiscent of the Y2K jitters that agitated the world at the change of the millennium eight years ago, a similar scenario is taking place in some gas stations across the country that still use mechanical pumps.

Their gas pumps lacked gears to register a sale beyond $3.99 a gallon. Gas prices, however, had exceeded $4 a gallon.

That is the problem faced by gas station owner Cathy Osborne, who also runs the Orlean Market and Restaurant, a 116-year old store. The profit on fuel sale is slim. "I don't know what I'm going to do. I don't have $30,000 to invest in new pumps, and I'm barely skipping by," Osborne told the Washington Post.

Osborne is not alone in her dilemma. Although majority of gas stations in urban areas have gone high tech with digital screens and electronic credit card readers, there are about 8,500 service stations across the U.S. that still use analog gas pumps, according to the Petroleum Equipment Institute. There are 170,000 service stations throughout the country.

Her obsolete equipment has caused trouble for Osborne, whose pump had to be shut down for false measurements. Osborne tried to find a kit that would alter the device, but she could not find one. There is actually one firm with such a product, that would permit pumps to display retail prices beyond $3.99 but it has several months backlog orders.

For consumers, the bigger headache was shelling out more money for the same volume of vehicle fuel. Some motorist in New York's Long Island responded by opting to commute. Gas stations selling below $4 a gallon, like the BJ's Wholesale Club on Route 110 in Farmingdale, had a field day tanking up cars because its retail price for regular gas was only $3.83 per gallon for club members.


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