BY JEFF CHUDZINSKINorth Country This Week

CANTON -- Higher fuel costs throughout St. Lawrence County when compared to neighboring counties has drawn the ire of consumers, something legislators have sought to address with the Attorney General's office.

According to County Attorney Steve Button, state officials supplied his office with a report of their findings after conducting an initial investigation into higher gas prices in St. Lawrence County.

"The report largely found that fluctuations were easily explained but probably easier explained by those in that field," he said.

To address those concerns, Button said he reached out to officials with Stewart's Shops and Mountain Mart. Only Stewart's accepted Button's invitation to speak with legislators during the March 24 Finance Committee meeting.

Vice President of Fuel and Transportation Pat Suprenant fielded questions from legislators, addressing a number of concerns during the meeting.

Though many constituents have accused gas stations of price fixing, Suprenant said there are many factors that are out of the companies' control and largely dictate pricing.

Fixed costs related to compliance, pricing and procurement, along with fluctuations in the market play the biggest role, he said.

"A lot of that goes into the pricing but it's not a linear formula," he said.

When asked about significantly lower pricing in the Clifton-Fine area,  Suprenant said they were "getting quite a deal in that market."

He commented that when compared to Malone, which is a highly competitive market, margins remain razor thin.

"Fuel is a loss leader to get people in there to change their shopping habits,"  Suprenant said.

He said in the case of the two Stewart's locations, one is barely profiting on fuel while the other is losing money everyday.

"We have to squeeze the margins where we can," he said.

He said fixed costs, coupled with hauling expenses that fluctuate drive prices.

 Suprenant said Stewart's also ships fuel from multiple locations, including Montreal, Albany and Syracuse.

Different fuel brands, whether it be Valero fuel from Montreal or Sunoco fuel from Syracuse, also plays a role.

He said when compared to Sam's Club in Plattsburgh, which was $2.88 per gallon on March 24, Stewart's can't compete with pricing that is a loss leader.

But Legislator John Burke questioned if buying power would have any effect on pricing, something Supernant said was not the case.

He said he had seen the pricing offered to much smaller stores and saw "not much, if any difference," he said.

When Stewart's purchased 45 Jolly's stores in Vermont,  Suprenant said he received the pricing they received, noting it was exactly the same as Stewart's had received for its then 365 stores.

He said purchasing options all affect pricing, with barges in the Capital Region being one way to save money.

"That's why pricing down there is lower, while we have to truck it up to St. Lawrence County. We can't do that up here," he said.

Burke also questioned how smaller "mom and pop operations" were able to compete with Stewart's pricing as well.

 Suprenant said he can't speak to their business practices but did say in the case of Stewart's, more money was spent on labor and compliance, which drives costs.

"We're pricing at a retail price where we need to be to make any sort of margin in our markets. We don't speak with other competitors, nor would I dare to allow our employees to do so either," he said.

 Suprenant also clarified that some fuels, such as 91 non-ethanol, is trucked up from Syracuse or Albany because it is not available in Canada.

One location in Gouverneur is also a Sunoco fuel branded store, meaning fuel has to be brought up from downstate. That contributes to expenses rising as well, he said.

In some cases Stewart's will ship a split load with 87 octane or diesel to offset those shipping costs, which also affects unleaded pricing, he said.

"We'll do a split load to the other store as well. We need to have a full truck coming up from Albany," he said.

But sending an empty truck back "isn't very efficient," he said.

Legislator Rita Curran also questioned the pricing scheme as it relates to Massena and neighboring counties, saying prices are 12 cents lower in Waddington.

She said many constituents wonder why neighboring communities have cheaper fuel prices when multiple stores are in close proximity in Massena.

"Well, it isn't always cheaper to pull from Albany, pulling from Canada is usually cheaper unless tariffs are involved,"  Suprenant said.

He commented that gas is usually cheaper in Albany based on raw cost when compared to Canada or Syracuse but logistics play a big role as well.

 Suprenant said Stewart's, like other operations, weigh their various expenses when calculating fuel prices.

"It's the way we price the market. We're not price fixing. I'm not going to jail for that," he said.

Taxes also play a huge role in costs rising, with an 18 cent federal excise tax, 22 cent state sales tax and state excise tax of 8 cents impacting retailers.

 Suprenant said taxes account for roughly 65 cents per gallon before it's ever put into tanks.

"We're a pretty fair, community based business. We wouldn't have been in business for 75 years if we weren't," he said.

 Suprenant said some operations may also undercut pricing as they attempt to sell off, with larger corporate stores buying up independent operations.

"The everyday cost changes every day based on what the market does.

"That's what we have to pay for fuel that day, within that cost that's your refining cost, blended cost of all products, cost of getting it to a terminal. Everyone takes a piece as part of their margin. That's where the cost lands, then you have distribution and taxes too," he said.

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