Dear Readers:
Two weeks ago, your esteemed columnist began attempting to answer the age-old quandary of why prices for gasoline seem higher in San Juan County than almost anywhere else in the known universe. Okay, maybe that’s a bit dramatic, but you get the idea. If you missed part 1, check it out here.
We learned that several things go into the total price for a gallon of gas. Here’s the breakdown according to the American Petroleum Institute:
47% – Price of crude oil
20% – Distribution and marketing
16% – Refining
17% – Federal and state gas taxes
But those factors affect everyone, so the question remains: why do prices seem to always be higher here? This is where things get fuzzy.
Expensive local gas prices have gotten the attention of at least two local politicians, most recently San Juan County Commission pro tem Sandra Lanier. She sent a letter to the New Mexico Department of Justice asking for an investigation. That was just a few weeks ago. Mr. Know-It-All has confirmed that the letter was sent and received by NM DOJ.
Another inquiry was made four years ago. Yes, you read that right: Four. Years. Ago. By Farmington Mayor Nate Duckett. Mr. Know-It-All reached out to the New Mexico Department of Justice and they confirmed hearing from Farmington’s Mayor. In fact, Deputy Communications Director Chelsea Pitvorec wrote me back, confirming an investigation is active into gas prices here in San Juan County. She also shared with me the contents of an email sent to Mayor Duckett from NM DOJ Attorney Billy Jimenez about a phone call he had with the Mayor earlier this summer. Jimenez said, “To recap, our Consumer Protection Division is currently conducting an investigation into potential causes of the gas pricing in San Juan County. We intend to provide you with ongoing updates as they become available. If actionable, we will take additional steps against any entity or company that is unlawfully contributing to disproportionate gas prices in the area.”
That sounds encouraging, but again, this investigation has been ongoing for four years. State officials won’t say which laws may have been broken, and despite dressing like one on occasion, Mr. Know-It-All is in no way a lawyer, nor does he play one on TV. However, he does have years of experience watching Judge Judy and the People’s Court, for whatever that’s worth. In order to prove wrongdoing in New Mexico under the Unfair Trade Practices Act (NM Stat § 57-12-3), “A successful plaintiff must prove (1) the defendant made an oral or written statement, a visual description or a representation of any kind that was either false or misleading; (2) the false or misleading representation was knowingly made in connection with the sale, lease, rental, or loan of goods or services in the regular course of the defendant’s business; and (3) the representation was of the type that may, tends to, or does deceive or mislead any person.”
Mayor Duckett has some theories. He says he was told that Farmington and San Juan County have long had higher gas prices because of our remote location and because that’s what we’re used to, that it’s what the market will bear. He also says he had heard that the large chain convenience stores and other gas station operators have thinner margins in larger communities and along the interstates in New Mexico, so they use higher prices here (and elsewhere) to make up for that. Is there any truth to that? Good luck getting a corporate executive to admit it, but it’s something to think about.
So, what’s a motorist to do? Shop around for the best price and use loyalty cards at different stores to earn discounts. Also, check whether one of your credit cards offers rewards or discounts on fuel purchases. Mr. Know-It-All wishes, dear readers, that he had a more definitive answer for this topic, but all I can tell you is that others and I are watching, and when there’s more news to share, you’ll read about it right here!
Mr. Know-It-All is Scott Michlin, the general manager of KSJE 90.9FM community-supported radio at San Juan College. When he’s not answering questions here or on the radio, you might find him teaching public speaking or mass media classes at San Juan College, or serving on the board of directors for San Juan United Way, Presbyterian Medical Services, or the San Juan Symphony.
If you have a question about something in San Juan County, drop him a line at SMichlin@tricityrecordnm.com. If he doesn’t know the answer, he knows someone who does, and you’ll read about it here in the pages of the Tri-City Record!