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Smithtown Mobil Boosts Credit Price Gap to $2

Though cash price offered at a discount.

A Smithtown Mobil station that sparked regional to use their credit cards rather than cash has pushed the gap even higher.

As of Thursday, the Mobil at 819 West Jericho Turnpike was charging an extra $2 per gallon, making the credit price $5.59 a gallon.

The cash price, at $3.59 a gallon, is significantly lower than the area average, where most local gas stations are charging between $4.05 and $4.11. And it's that discount that had customers lining up Thursday morning.

"I saw the price and did a U-turn," said Smithtown resident Cesar Garcia, who added he was shocked when he pulled in and saw the price for credit.

"I'm paying cash, " he said, "but I was just updating Gas Buddy with the credit price. This is crazy."

In fact, every person Patch spoke to Thursday morning was paying with cash.

A clerk at the store who asked not to be identified said the manager would not be in until later, but added that he was just doing what he was told.

"We get a call from the head office to make the price and I change the sign," he said.

The owner of the Smithtown Mobil could not be reached for comment on Thursday morning. His manager said he would be out of town at an industry convention until May 1. 

The Smithtown Mobil was not the only station with the newly boosted price gap Thursday. Locals on social media were posting photos of the Gulf Station at 1395 Veterans Highway in Islandia and the Citgo Station at 3200 Veterans Highway in Bohemia, each with the exact $3.59/$5.59 price disparity.

In an interview last month, Michael Watt, the executive director of the Long Island Gas Retailers Association, , though he decried huge pricing gaps as being counter productive.

“It’s illegal to charge for the use of a credit card, but it's perfectly legal to offer a cash discount,” Watt said.

But state Sen. Kenneth LaValle saw the outrage as a need for new legislation and said he .

“The law as written forbids charging consumers a surcharge for the use of their credit card,” LaValle said. “Because the statute is unclear, retailers have been charging higher prices for credit card use but maintaining that the cash price represents a discount,” he said in March.

Drew Biondo, spokesman for the senator, said LaValle introduced that bill on March 15.

Essentially, it all boils down to buyers beware, said another customer in Smithtown on Thursday.

"If people are silly enough to pay that price, that's their fault," he said.

Stay tuned for updates.

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KFM May 21, 2013 at 04:17 pm
How, in a period of rapidly declining enrollment, can costs be increasing so much from year to year,Read More you ask? The answer is in front of you in black and white. I urge you to READ your district’s budget: we are funding retirements when many of us cannot afford to fund our own during difficult economic times. These wheels were set in motion by contracts negotiated in times of unrealistic growth that may likely not occur again. It is time to open up these plans and relieve this unfair burden from our shoulders. Whatever other measures are pursued in order to control costs, including consolidation within and eventually with other districts, are never going to be enough if you cannot get this problem corrected. Write your congressman, for the love of God. If you need any more incentive to do so, please go to http://rocdocs.democratandchronicle.com/database/teacher-pensions-new-york and look at what Smithtown’s retirees are collecting MONTHLY. It will sicken you.
KFM May 21, 2013 at 04:12 pm
They are allowed to exclude the pension and employee benefit increases when expressing the increase.Read More
Billie B May 20, 2013 at 10:17 am
Tomorrow is the vote..vote NO NOW or our taxes are going to continue to sky rocket. Unless we doRead More something this town will continue to spiral down. More taxes aren't going to help. We need to cut expenses and get ourselves on a fiscally responsible plan.