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Last dash for cheap gas could prove unnecessary

STEPHEN HEGARTY
Published August 30, 2004

We know your strategy. You're planning to go out Tuesday, the last day of August, to fill up the gas tank in your car, your truck and your lawn mower. You might even bring your little red gas can.

All because the state's monthlong break from the 8-cent gas tax is about to expire. You're no dummy. You're going to get your gas right before the prices get jacked up.

You might not have to rush after all.

Why? We don't expect gas prices will uniformly jump by 8 cents at the stroke of midnight.

Under the law that brought us the gas tax break, retailers are not supposed to increase prices until they use up all the gas they bought at the reduced prices. So unless their gas tanks are empty and they get a new shipment, they can't charge you more for it. Well ... they can charge you more, but they're not supposed to charge you more.

For some gas stations it will take a few days to deplete their tanks. But for some busy stations it won't take but a day to use it all up.

Attorney General Charlie Crist tells us he's determined to enforce the law, even though he's busy prosecuting price gougers in the wake of Hurricane Charley. That'll stop some retailers from raising prices right away. The other factor is good, old-fashioned competition.

"If the guy across the street has the reduced price, it's going to hurt business if you increase your gas prices," said Jim Smith, president of the Florida Petroleum Marketers and Convenience Store Association.

Jamal Quannas, owner of the 54 Food Mart in Land O'Lakes, expects it will be a few days before his prices increase by the 8 cents. He says he'll keep an eye on his competitors.

Shale Gladfelter, whose Radiant Oil Co. supplies more than 100 local stations, said he expects the market will take several days to decide what to do. After a day or so, some stations might raise prices by 4 cents just to see what the competition does.

So how long until we're back to $1.90 for regular and $2 for midgrade?

"We'll be back to normal no later than mid-September, maybe earlier," Smith said. "But I sincerely believe you will not see the full 8-cent increase on September the first."

And in the "guess what" category ...

If prices were increased by 8 cents last week, according to Friday's AAA Daily Fuel Gauge Report, gas prices would still be a little lower than a month ago.

Red light, green light

The prospects for a traffic signal on Collier Parkway in front of the Land O'Lakes Recreation Complex are moving along pretty quickly.

With the planned expansion of the Rec Complex, the county is overseeing a traffic study. The expansion will roughly double the parking at the complex, and that could mean more traffic, to go along with all the cars coming out of Valencia Gardens across the street. The study is supposed to be finished in about eight weeks. Stay tuned.

-- Want to vent about traffic problems? Drivers' Side welcomes commuters' rants, comments and suggestions. Send e-mail to hegarty@sptimes.com or leave a phone message at 813 909-4610.

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