Arco, Unocal pass along 5-cent-a-gallon gas tax to service stations and consumers.

Arco, Unocal pass along 5-cent-a-gallon gas tax to service stations and consumers

Southland service station owners, complaining of already waning profit margins, are electing to pass much of the new 5-cents-a-gallon gasoline tax on to the consumer.

The federal tax was approved by Congress in October as part of the budget reconciliation act. Half of the revenues are earmarked for reducing the federal budget deficit and the other half for financing transportation projects.

On Dec. 1, both Los Angeles-based oil companies, Atlantic Richfield Co. and Unocal Corp., raised their gasoline prices to dealers by 5 cents a gallon.

"They (dealers) are passing it on, I'm sure," said Steve Shelton, executive director of the Souther California Service Station Association. Dealers don't have the capacity to absorb the costs themselves, he said.

The impact of the 5-cent increase was eased slightly by a reduction in gas prices during November, prior to the tax hike. Both Arco and Unocal lowered their prices last month to adjust to changing market conditions. Unocal cut its price to its dealers by 4 cents, according to spokesman Jeff Callender, and Arco lowered its price by 3.5 cents, according to spokesman Doug Elmets.

Churck Mercier, owner of a Unocal station in Burbank, said he raised his gasoline prices by 4 cents in reaction to the new tax, while Mike Cooper, manager of another Unocal station in Beverly Hills, said he raised his prices by 5 cents a gallon. "I didn't have a choice," he said.

ARco station owners raised their prices as well. One owner in Lomita said he passed along 3 cents a gallon to his customers.

Those interviewed raised their prices slightly more than did other dealers nationwide, however. The American Automobile Association reported that the average price of self-serve regular unleaded gasoline increased 2.1 cents nationwide during the week of Dec. 1.

The new tax is just an addition to an assortment of taxes already levied on gasoline. Current taxes include: 30.1 cents a gallon for state and federal taxes> 0.35 cents for a federal tax earmarked for cleaning up hazardous underground contamination> 0.7 cents for a state tax to clean up offshore oil spills> and a 6.75 percent state/local sales tax.

In addition, on Jan. 1, 1991, another half-cent state tax will be levied on gasoline as a result of the passage of Proposition 11, and a 0.6 cent state tax to provide more money for cleaning up hazardous underground contamination will also be added.

Diesel users are feeling the tax pinch, as well. The Interstate Commerce Commission surveyed 16 truck stops across the nation during the week of Dec. 1 and found that the price of diesel had increased 2.7 cents a gallon.

Truckers, whose profits have been suffering since the oil crisis began, are dismayed by the price increases.

"We've absorbed all we can absorb," said Dick Rawlings, owner of Rawlings Trucking Inc. in Santa Fe Springs. He said prices fluctuated last week among the stations where his company buys diesel.

"It's kind of hard to say exactly what's going on," he said.

Apparently, though, the added tax is not enough to convince Southlanders to change their driving habits.

"The hassle of congestion is the most important factor in causing people to carpool," said Jim Sims, president of Commuter Transportation Services Inc., commonly known as Commuter Computer.

So far the gas crunch, on the other hand, has not had a big impact on driving habits, he added. "Another nickel a gallon won't make a difference."

Sims estimated that gasoline prices would have to reach $2 a gallon before drivers would change their routines.

But gasoline dealers are still being hit hard even with the current prices, according to Shelton. "Most dealers are suffering now," he said.

"It (the tax) is biting them," said Judy Roberson, legislative coordinator for the Southern California Service Station Association. "Every time they have an increase, it starts coming out of your cash flow."