Jun 11, 2008 10:07 pm US/Eastern
Gas Prices Force Local Business To Close Pumps
NORTH ANDOVER (WBZ) ―
As gas prices continue to soar to all-time highs, some gas stations have decided to turn off their pumps because they aren't seeing enough profit to keep them running.
Chip McAllister owns the Sutton Street Service Station in North Andover. Because of steep prices, he stopped selling gas last weekend. But his station still provides automotive service. So, he is now devoting his full business to fixing cars.
McAllister estimates he was losing about $5,000 a month selling gas, and he couldn't keep hiking the price because customers wouldn't come.
"We have clients who will drive 20 miles for service and allow us to repair their cars, but they won't drive 20 miles to have their gas tanks full," he said.
McAllister said he was pumping half the gallons when he first opened in 1988, and now his costs to pay for the gas are suddenly driven by a volatile financial market.
Gas was 98 cents a gallon when he first opened. He closed shop at $4.09 a gallon.
So for now he's staying under the hood as analysts warn these prices won't be coming down anytime soon.
The reason gas prices are so high is crude oil prices.
Crude oil prices were $50 a barrel in January of 2007. Today, they topped $138 a barrel.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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