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Torres says oil price hike too much
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Posted on Sep 15 2000
Reacting to the latest gasoline price hike, Rep. Stanley T. Torres expressed both disgust and surprise. “A gallon of gas now costs almost the same as Chicken McNuggets,” he said in a statement.
Mr. Torres accused Mobil Oil misrepresenting itself when it said it needs to raise prices to reflect oil price increases worldwide. “Mobil still gives away free food and drinks. How can they do that,” he asked.
“Because they can afford to, that’s why. If Mobil were serious about keeping prices down, they would stop spending so much money on expensive promotions and pass those savings on to the pump,” added the Saipan lawmaker.
Noting consumers have little choice on where to buy gas, Mr. Torres said there is no justification for Mobil to use giveaways as a way a stay competitive with Shell.
“If Mobil really wants to take customers away from Shell, they should lower their prices at the pump. That would be more appreciated by the public and attract more customers. It’s not necessary to give away food. Food and gas don’t mix,” he said.
Currently, a purchase of $12 of gasoline at Mobil entitles a customer to a free Chicken McNuggets worth $2.75 and a 65-cent Coke for a total value of $3.40. “That’s an expensive giveaway for something people have to buy anyway. Who is paying for that? You and me, that’s who,” Mr. Torres said in the statement.
“In these times of economic crisis, all of us have to cut back expenses to survive, but not Mobil. They act like everything is fine when it isn’t. It’s business as usual for them,” he added.
The fourth since February this year, oil giants Mobil Oil Mariana Islands and Shell Marianas have recently increased fuel prices, citing trends in both global and regional markets.
Regular unleaded gasoline now costs $2.129 per gallon, while the price of premium gasoline has gone up to $2.219 per gallon.
