“We’re the price taker, not the price maker,” Dassel said.ĭassel’s most recent cost survey in February indicated Safeway was selling gas at nearly 15 and a half cents below the Tesoro daily price, Mackie said.įifteen gas stations petitioned the city to stop Safeway from opening its own pumps when the project was in the planning phases, Mackie said. Both purchase their gas from regional distribution facilities with prices driven by the refineries. ‘We don’t have the privilege of looking at their invoices, but they are so far below cost that it’s the only way possible,” Mackie said.ĭassel said his business and Safeway likely are paying the same prices for gasoline. Prices were $2.03 Thursday for unleaded gasoline.Ĭustomers can receive an additional three cents off the posted price by using their Safeway card. “Consistently, their price has been below cost in our estimation,” said Graham Mackie, co-owner and Dassel’s brother-in-law. Safeway spokeswoman Teena Massingill would not discuss the suit, saying the company does not comment on pending litigation.ĭassel’s has monitored Safeway’s prices almost from the moment the station began selling gas in late June of 2002. It would be presumptuous of us to project what we have in mind,” he said. As for the exact amount of damages they’re seeking from the suit, Dassel refused to say. “We’ve done our homework and spent a lot of time on this.”ĭassel’s is seeking an injunction to stop the alleged price-cutting and damages exceeding $10,000. We don’t take this lightly,” Dassel said. In court records, the wholesalers said that after the local Safeway began selling gasoline, the gas stations Dassel’s sells to reduced their orders, resulting in lost revenue.
Dassel’s losses at its retail station in the year ending June 2003 amounted to more than $108,000, and Dassel predicts similar losses for this year.
“Safeway’s predatory practice is driving local gasoline stations out of business and in the long run will give consumers less choice and ultimately result in higher prices for consumers,” Co-owner James Dassel said.ĭassel’s and two wholesale companies supporting the suit say they are losing customers and hemorrhaging money as a result. HOLLISTER – A family-owned gas operation is picking a fight with retail giant Safeway over what it calls predatory gas pricing.ĭassel’s Petroleum, Inc., of Hollister, filed a civil case against Safeway in San Benito County Superior Court Tuesday, claiming the large food and drug retailer is selling gas below cost at its station on Tres Pinos Road. Giant Safeway over what it calls predatory gas pricing.ĭassel’s Petroleum, Inc., of Hollister, filed a civil caseĪgainst Safeway in San Benito County Superior Court Tuesday,Ĭlaiming the large food and drug retailer is selling gas below cost – A family-owned gas operation is picking a fight with retail
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