Savannah Selle
As the world’s largest retailer, Walmart has demonstrated an ability to drive down prices on retail goods. And in Michiana, at least, an affiliate of the company appears to be doing the same thing with the price of gasoline.
According to reports, Murphy USA, the on-site gas station at the Walmart on Michigan 51 in Niles, lowered the price of a gallon of regular unleaded by about 40 cents Thursday, to about $3.35 a gallon.
That prompted gas stations up and down Indiana 933, from the Indiana Toll Road entrance, on the south, to State Line Road, on the north, to follow suit today.
“We tried to hold our prices, but we couldn’t afford to be 35 to 45 cents more expensive than them for two days,” said Shadi Musleh, owner of the BP station on 933. “But we’re definitely losing money,” he said, between 25 and 35 cents per gallon.
“We’re losing 45 cents per gallon,” said Jen Ferrara, an employee at the Phillips 66 station at Indiana 933 and Auten Road. The station decided to lower its prices and take a loss, she said, because other area stations had done so “and we had no customers.”
At both stations today, regular unleaded gasoline was selling for $3.35 per gallon, about 35 cents below the average price in the state, according to AAA’s Daily Fuel Gauge Report. Other stations posted similar prices.
“But it’s not just about gas,” Musleh said, noting that gas sales drive food, drink, lotto and tobacco sales, which, combined, account for most of the profit in the gas station business.
Is Musleh upset with Murphy USA?
“Of course, of course,” he said. “I’m losing money because of them. It’s just not fair.” He noted that, had he not also lowered his prices in line with the retailer, customers would have assumed he was gouging them.
Reached for comment today, a Walmart representative directed questions to Murphy USA. Based in Arkansas, Murphy owns and operates on-site gas stations at Walmart locations across the country, including in Niles.
Jay Staggs, director of communications at Murphy USA, declined to comment on the matter.
On a side note, Walmart announced in June it would reduce gas prices at participating Walmart and Murphy stations this summer, but only by 10 cents and not at the Niles’ location, according to the company’s website.
Customers, of course, appreciated the opportunity Friday to fill up without breaking the bank.
“Even though I have a pretty efficient car, it’s still nice to not have to pay a tremendous amount” to fill up, South Bend resident Mary Cook said as she pumped gas into her green Scion xB at the Phillips 66 station.
“It’s always good when you get a break on gas prices,” said Robbie Todd of South Bend, who, along with dozens of other motorists, endured long lines today to fill up at $3.30 a gallon at the Admiral station on 933, just north of Darden Road.
Unfortunately for Todd and those other motorists, the gas war along 933 could soon be coming to an end. As of late today morning, the price of a gallon of regular unleaded was back up to $3.67 at the Murphy station outside Walmart, a possible sign of peace.
Even so, Musleh, at least, had decided to take a wait-and-see approach. Until his competitors moved on price, he said, he intended to stay put.
“As long as it continues this way,” he said, “I have to.”
Staff writer Erin Blasko:
eblasko@sbtinfo.com
574-235-6187
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