Low gas prices don’t translate to smaller profits
Cheryle Begay, an employee with Native Resource Development, fills her tank at the Giant Station on Historic Route 66 on Tuesday. In recent months Americans have been traveling less, making it difficult for gas stations and convenience stores to to turn a profit. — © 2008 Gallup Independent / Brian Leddy

Copyright © 2008
Gallup Independent
By Gaye Brown de Alvarez
Staff writer

GALLUP — With gasoline prices down to the lowest level in five years, many people are scratching their heads. Didn’t we have a petroleum shortage? Weren’t we examining ways to build hybrid and electric autos?

While prices for oil hit $38.02 a barrel on the New York Mercantile Exchange, retail gasoline prices in the U.S. fell and neared $1.60 per gallon on Monday.

Even the recent tension on the Gaza Strip haven’t affected oil prices. Around Gallup, gasoline prices can be found as low as $1.49 a gallon, and average about $1.55 a gallon.

Gallup resident Mike Mataya, who owns Indian Capital Distributing, is the local gas station czar. He owns about a dozen facilities and keeps accumulating more. The Chevron station near Baskin Robins took down its Chevron sign and now has a Mataya sign. Regular unleaded gas was listed at $1.60 on Tuesday. Manager Gary Mesich said that things were slow since the station changed to Mataya’s. Frank Nechero used to own the station when it was a Chevron, and he still owns the building.

Customer Elizabeth Bitsui from Chinle came in and got $10 worth of gas. “I drive in every day from Chinle,” she said and was happy that the prices have gone down. Sometimes, she will pick up a bag of popcorn or a Gatorade or a Monster. Alfonso Romero of Gallup filled up “his kid’s car” and said, “Gas prices are great now.” He’s hoping that prices will stay down but isn’t sure they will.

He said he never buys items in the convenience store.

Mark Rosebrough, who was driving from his home in Albuquerque, where he attends UNM, came in to fill-up with coffee and gas for his trip to Phoenix. “I’m happy about the gas prices now,” he said. “I have a bit more spare cash.” The coffee was free with his gas purchase.

Erma Thompson came in and paid for her fill-up for her six-hour drive to Lake Havasu. She and her husband spend the winters there instead of Goderich, Ontario, Canada.

When asked about the gas prices she said, “They’re a lot better than they were!” She added that she rarely buys anything in the convenience stores when they stop for gas.

Mataya’s wholesale manager, Chuck Mataya, said in an interview Monday, that “everything is about the same,” regarding the lowering of gasoline prices and it hasn’t affected the business much. They have their own gas tanker trucks, they pick up the gas in the state of New Mexico and fill the gas station tanks from the trucks. In fact, the Mataya’s in downtown Gallup on Route 66 was out of gas all day Monday with their price at $1.49.

Manager Sheila Nelson said “we’re out of gas, we’re waiting for the truck.”

A new station is going up at Lowe’s on East Highway 66. It has quite a few pumps and no convenience store. It’s not quite open yet, but on Monday, three employees were inside the attendant’s cage, working out the computer kinks and training. “We’re still waiting for the paperwork to open up,” said Daureen Nez, who works inside the Lowe’s grocery store, but will be helping out with the gasoline station. If you fill up, and decide you want cigarettes, a Snickers bar or a bottle of water, you have to go inside the big, new Lowe’s store.

Lorraine Chato at the Mustang store at the East Y, said she had only been working at the convenience store for about three weeks, so she didn’t know anything about the business when the gas prices were at $4 a gallon.

At the Allsup’s on Arnold Street, the price of gas was dropped from $1.49 to $1.47 per gallon. Tim Bitsilly of Mexican Springs was filling up his Dodge Neon, which he said has a 12-gallon tank and “usually takes me about 350 miles.” But, he added he has a 47-gallon F250 that he had to stop driving when gas was at $4 a gallon. But, he said, he got it out and dusted off the cobwebs and is using it again. He drives every day into Gallup from Mexican Springs.

“I worked in the oil and gas industry for 14 years,” Bitsilly said. “And I couldn’t understand how gas could go to $4 a gallon. I still don’t understand it. I used to come in and buy chips or Cokes, but when gas was high, I had to cut back on my purchases.”

He said he knows gas prices will eventually go up, but like everybody else, he’s not sure how long it will take.