Competition could soon bring relief for Savannah’s pain at the pump.
Supplier Western Refining, in cooperation with commodities producer and marketer Glencore International, last week began selling regular gasoline out of the Epic Terminal along the Savannah River. Western is competing with Savannah-based Colonial Oil, which has operated a terminal locally since 1933.
Western Refining’s media relations contact did not return telephone calls seeking comment.
Western began offering gas on March 5. The average price has fallen seven cents since to $3.63 a gallon, with Western/Glencore offering a discount between 1.5 cents and 6.85 cents a gallon compared to Colonial for unbranded regular gasoline, according to Oil Price Information Service statistics
Colonial officials did not respond to interview requests.
Gas prices were dropping even before Savannah became a two-terminal town. Prices spiked at $3.79 a gallon in mid-February, rising 27 cents in a week’s span. The decline since is due as much to the price of crude and a narrowing spread between what Colonial pays for gasoline from shippers and what the company charges wholesalers.
The margin was down to four cents as of March 4.
Several Savannah-area service stations were offering gas for as little as $3.21 a gallon on Tuesday, according to the Gas Buddy website.
Western’s presence will have a positive long-term impact, at least from a consumer point of view, said local gasoline retailer Greg Parker.
“I expect we’ll see a reduction in area gas prices as a direct result of this development, which will help take the pressure off consumers at the pump,” said Parker, owner of Parker’s convenience stores. “At Parker’s, we welcome the competition and strive to offer the lowest price for customers at all our locations.”
Western’s move into the Savannah market began last September when the company announced it would team with Glencore to operate the Epic Terminal. The terminal was purchased by Blue Water Energy, based in London, last April.
Blue Water bought the terminal based on the “strategic nature of the Port of Savannah,” the company’s co-founder, Thomas Sikorski, said last year.
“We believe this location will serve as an important market for refined product imports given the proposed deepening of the Savannah Harbor to 48 feet,” Sikorski said.