Lukoil Protest Means $8 Gas for Drivers
Gas stations across New Jersey and Pennsylvania are hiking prices in protest of unfair pricing practices by Lukoil, a large oil distributor operating in North America.
Reports indicate that more than 50 Lukoil gas stations in those two states have raised the price of a gallon of unleaded to more than $8, and in some cases more than $9, in what gas station owners are claiming are unfair pricing practices conducted by Lukoil North America.
Sal Risalvato of the New Jersey Gasoline, Convenience and Automotive Association stated that the protest was concerned with drawing consumer awareness about the shady pricing practices that Lukoil is perpetuating in an effort to draw company into a response.
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At the heart of the protest are accusations that Lukoil forces franchisees to pay a higher dollar amount for gasoline than other competitors.
"We were all at a breaking point … they essentially sell the very same gasoline to stations in close proximity of each other at different prices in order to game the market and compete with other gasoline brands," Risalvato told the Associated Press.
"In doing so, the price may differ by as much as 25 cents a gallon, and place one retailer and the retailer's customers at an enormous disadvantage over another station," he added.
Lukoil is Russia's second-largest oil producer. Presently, Lukoil has more than 500 Lukoil gas stations scattered throughout the Northeast and Mid-Atlantic markets, with the first one opening in 2003.
Gas station owners who decided to take part in the protest revealed they were planning to distribute fliers to customers explaining the nature of the protest and the reason for the expensive gas. They also wanted to encourage customers to contact Lukoil and complain.
"No matter what the market conditions are on a particular day, Lukoil's prices are higher than just about every retail competitor," Risalvato said.
