INVESTIGATING OR DISTRACTING?  LOOK AT GASOLINE

[Cromwell, CT] Today, Bristol State Senator Tom Colapietro called on Connecticut Attorney General Richard Blumenthal to investigate retail gasoline prices, citing what appears to him to be a disconnect between crude oil prices and gasoline prices.

The Independent Connecticut Petroleum Association, representing the majority of the state's local gasoline retailers and jobbers, wishes to join with and address Senator Colapietro in his concern. One month ago the wholesale price of gasoline was $1.7297 and today that wholesale price is $2.0148. While local retailers and jobbers wholesale prices have increased by 29c a gallon in one month, the retail price has increased, on average statewide based on AAA surveys, of only 12c per gallon.

ICPA wishes to add that as the Connecticut Gross Receipts Tax is 7.53% of the wholesale price of gasoline, based on the last four week's increase in wholesale prices the State of Connecticut now collects an additional 2c per gallon on every gallon of gasoline sold.

Connecticut's retail gasoline and diesel prices are not only in line with every other state in the region [see > http://icpa.org/consumer_motor.htm ] but when all state and federal taxes are removed, as Connecticut has among the highest motor fuel taxes in the region - Connecticut's retail gasoline prices are actually lower than most other states in the Northeast.

The following is a breakdown of what goes into the retail price of a gallon of gasoline;

Connecticut Average Gasoline

Prices - 08/20/2009

New Haven Average Wholesale / Regular Gasoline  $2.0148     Connecticut Gross Receipts Tax [7.53%] $0.1517 Connecticut Excise Tax $0.2500 Federal Excise Tax $0.1840     Total Cost Before Leaving New Haven Harbor $2.6005     Transportation from New Haven to local stations $0.0400 Credit Card Company Charge per gallon [2% of sale price] $0.0560     Cost Before Dealer Mark-up $2.6965     Dealer Mark-up to pay for utilities, payroll, property $0.2000 taxes, environmental compliance       What The Retail Price Would Be With All Costs $2.8965     Actual AAA Connecticut Average Retail Cost $2.8000 8/17/2009     **CT & NY use ethanol instead of MTBE as a oxygenate. As a result, blenders of gasoline with ethanol may apply for a 4.5¢ per gallon refund off the 18.4¢ per gallon federal excise tax.

Aside from their usual baseless ranting on oil, and our ranking having the highest motor fuels taxes, a recent study by the National Resources Defense Council (NRDC) ranks Connecticut as the most affordable when it comes to how much motorists spend on gasoline when compared to their income. Connecticut consumers pay nearly 66% less than their Mississippi counterparts. The NRDC study proclaims Connecticut as the least vulnerable to gasoline price fluctuations. See Channel 8 story HERE

By all means, investigate.  May we send the legal bills to Senator Colapietro?

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ICPA represents more than 550 Connecticut based independent businesses. These businesses employ 13,000 Connecticut citizens and supply the majority of our state's 1,600 motor fuels outlets and 350 heating fuels dealers. ICPA's offices are at 10 Alcap Ridge, Cromwell, CT  06416.  For more information about today's Press Release, contact Gene Guilford or Chris Herb.