The rent on Tony Grasso's service station is going up, but his allocation of gasoline has shrunk to the point where he can't make a profit. So on Monday, he says he'll start charging $5 a gallon for gas.
Grasso, 57, says he knows $5 a gallon is over the federal price ceiling, but things have been going so badly lately at his Chevron station that he doesn't care.
Grasso opened his station in January, and built up his sales to a peak of 43,000 gallons in March.
The the oil companies starting cutting gasoline supplies. Standard Oil has cut his allocation to two loads (8,100 gallons each), he said. But in June they sent him one of his July deliveries, so next month he'll get only one.
With only one delivery in July, Grasso says he won't come close to meeting expenses, so he's taking things into his own hands. And he is confident motorists will pay $5 a gallon.
"The ones that will buy it are the guy that don't want to wait in line, the guy that sympathizes with my cause, the guy that is in business and knows what I'm fighting.