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June 27, 2019
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 Inside this issue
  Executive Directors Message  

An Unanticipated Marketplace Update
AMT Dividend 
Final Warning: Minimum Wage Going Up Monday
Young Professionals
Membership Drive
Happy 4th of July!

Several weeks ago, I mentioned my reluctance to talk about the marketplace as there have been many different twists that have kept me from accurately giving you advice as to where the market was heading. I remember I said prices would continue to decline as long as there was not any kind of major storm in the Gulf that knocked out any refineries. What I failed to add to the list of potential problems were any explosions at any other refineries. I'm sure by now you have all heard that a major refinery based in Philadelphia had a catastrophic explosion last Friday. The press has been calling me all week and I have been explaining to them that any price increases will be determined by how long the refinery is closed. Once again I failed to even think that the refinery might be closed permanently. News surfaced yesterday with an official announcement this morning that in fact, the refinery will permanently close and over 1,000 people will be out of work within two weeks. What will this mean to you? I think I can predict that in the short term, you can expect to see price hikes from 10 to 20 cents that could continue upward unless or until the industry announces how that supply will be made up. This could be through shipments via pipeline, barges, and even imported gasoline from other countries. It is still too early to tell what long term effects may arise two to three months from now, but I think it is safe to say that you can forget about the price decline that I predicted two weeks ago. 
For all of you who purchase health care coverage for you and your employees through the NJGCA AMT program, you will all be receiving a credit on your July premium invoices that represents .75% of all of the premiums you paid in 2018. Depending on the number of people you cover, this will equate to an amount from a few hundred to a few thousand dollars. 
Final reminder: New Jersey's minimum wage will increase to $10 per hour on July 1. This will also bring overtime rates to $15 per hour (time and a half). It is very important that you make sure to inform your payroll company to make this change to be sure that you are in compliance. There will not be any leniency on this. We had an excellent clarification question from a member last week regarding minimum wage. Since we have written you to say that businesses with more than five employees must comply with the new rate of $10 per hour as of July 1, I want to clarify that if you are on the payroll, you count as an employee. If you have five other employees plus yourself, then that falls under the category of more than five and everyone must be paid at least $10 per hour as of July 1. 
NJGCA's Young Professionals will be meeting again on July 11th from 6 to 8 PM at the Asbury Park Biergarten. I want to remind our members again that if you have young motivated people working in your shops and/or stations, or anticipate handing your business over to the next generation down the line, we hope they will be able to attend our event. This is an excellent opportunity to network with other people with similar interests and for us to learn what new ideas, technologies, and opportunities are coming down the line which could potentially further our businesses and the industry. If you know of someone who might be interested in attending, please send them our registration page to sign up! For any of our MBPs that would be interested in sponsoring, please email either Michelle or Eric at michelle@njgca.org or eric@njgca.orgfor more information.  I expect that Eric and Michelle will have an interesting invitation for the next Young Professionals event to share with you on July 11.
You all should have read in our April 2019 OTR and received emails about our membership drive. Please consider colleagues and competitors that you have a relationship with, and ask them to consider joining our cause here at NJGCA. After you speak to them, give us a call and let us know that you have spoken to them, and we will take it from there. The member with the most referrals that result in membership will win a $250 Visa gift card!

Due to the holiday, we will not be sending a Road Warrior newsletter next week. I will also be away on vacation the following week. Michelle and Eric will update you on any important news on the 11th. I hope you all have a wonderful holiday weekend, and take time to remember the sacrifices and risks that were made in order to win our independence, and ultimately the freedom that we all enjoy.
That's all for this week-
Sal Risalvato
Executive Director




  Training Class Schedule  

All classes held at NJGCA HQ -- 4900 Route 33 West, Wall Township, NJ 07753

There are no new classes at this time




  News Around The State  

Visiting the EV "Profit Desert"
Auto industry profits are going to be squeezed for the foreseeable future as companies spend heavily on electric and autonomous vehicles amid stagnating global sales, per new research from Alix Partners. Why it matters: The high cost of battery electric vehicles (BEVs) means there's a near-term "profit desert" the industry must cross until consumer demand grows, Alix forecasts.

Closing of Explosion-Damaged Refinery Could Send Gas Prices Higher Just In Time for July 4 Holiday
The permanent shutdown of the fire-damaged Philadelphia Energy Solutions refining complex could send gasoline prices higher across the U.S., but particularly in the mid-Atlantic region, where they could spike temporarily just around the time drivers fill up for Fourth of July holiday. Sal Risalvato, executive director of the New Jersey Gasoline, C-Store and Automotive Association, said that since the explosion, prices are up 4 cents per gallon at the wholesale rack, where trucks fill up for New Jersey gas station deliveries. But since June 19, prices are up 11 cents per gallon, moving up when oil prices rose on Iran tensions. Risalvato said prices could continue to rise and over the next two to three weeks, and there could be some supply issues. "The significance of this event is that it happened at a crossroad in the market when prices were declining. At best it stopped the decline and at worst could result in 20 cent increase," he said of prices in the New Jersey region.

How Much Will The Philly Refinery Explosion Affect The Price Of Gas?
Sal Risalvato of the New Jersey Gasoline C-Store Automotive Association talks about how the South Philadelphia refinery explosion is going to impact how much people pay at the pump.

Refinery Explosion and Fire Should Drive Up Gasoline Prices in Some Locations
Gas prices at the pump should rise for East Coast drivers after a massive explosion Friday affected operations at a Philadelphia refining complex responsible for as much as 27% of the region's fuel production. Sal Risalvato, executive director, New Jersey Gasoline, C-Store and Automotive Association, said that before the explosion, he already saw prices rise this week at the wholesale rack, where trucks fill up for New Jersey gas station deliveries. Some prices were up as much as 4 cents per gallon Thursday, based on the oil price jump, he said. "I'm seeing right now at least in the short term, you're going to see prices go up," said Risalvato. "It wouldn't surprise me if when I get my rack prices tonight at midnight that gas went up 5 to 10 cents. Will you sees that at the pump right away? You might. Once there's an announcement the refinery is back on line, the price will go back down."

More And More N.J. Towns Are Banning Plastic Bags. Check Out The Growing List.
Just last week, a ban on single-use plastic bags went into effect in Beach Haven. Meanwhile, on Wednesday night, Bayonne's city council passed a ban on single-use plastic bags and plastic straws beginning next year. Asbury Park and Ridgewood both approved ordinances last week to put bans in place next year. That means that at least 17 municipalities -- and one county -- have plastic bag regulations in effect. Another nine have passed ordinances which are now waiting to go into effect. Finally, at least 12 municipalities are known to be actively developing plastic bag regulations.

1 Big Thing: Geopolitics Roars Into Oil Market
Crude oil prices surged yesterday and are heading upward again this morning amid escalating tensions in the Middle East. Why it matters: The upward moves show how geopolitical conflict is at least temporarily in the driver's seat in oil markets, after weeks of humdrum economic news sending prices largely downward. What's new: "Brent oil rallied above $65 per barrel on Friday and was on track for a 5% gain this week on fears of a U.S. military attack on Iran that would disrupt flows from the Middle East," Reuters reports.

San Francisco Takes First Step to Ban E-Cigs
In an effort to crack down on underage vaping, San Francisco has taken the first step to block the sale of e-cigarettes citywide, reports CBS News. This week, city leaders voted unanimously to ban the sale of e-cigs within the city limits, and if the legislation passes on a second vote, it will go to the mayor for a signature. If signed, the law would take effect in six to seven months.

Why We Can't Possibly Switch Everyone To Electric Cars
Converting the state's cars, trucks and buses from oil to electricity will require New York to gobble up huge portions of the world's supply of materials like cobalt and neodymium, which will make the state's auto fleet heavily reliant on a single supplier: China. The CCPA requires New York to slash its greenhouse gas emissions by 85% by 2050. Transportation accounts for about one-third of that output.

Trump Says He's Weighing Democrats' Plan for $15 Minimum Wage
President Donald Trump said he's considering backing an increase in the federal minimum wage to $15 dollars an hour, as some Democratic presidential candidates have proposed, but says salary growth during his presidency should assuage concerns over fair pay. "I am looking at that," Trump said in an interview with "Noticias Telemundo." Trump also said he had "already created a minimum wage because wages have gone up more than anybody in many decades right now" as a result of the strong economy.


  Energy Information Agency Weekly Retail Gasoline Prices  
Each week, the Energy Information Administration publishes a list of average gasoline prices for the previous three weeks. NJGCA will begin including this list with the Weekly Road Warrior. Remember, these prices are reflective of self-serve everywhere except NJ.


  Member Benefit Partner Message Board  



  Classifieds: For Sale and Help Wanted Ads  



Business For Sale: Monmouth County gas station and repair shop in business since 2001 is for sale. Owner is relocating out of state and is interested in selling business and equipment. Owner is open to limited financing. Business has a strong 10 year lease. The building has two repair bays and the gas pumps are leased to a large independent tenant. Repair shop business currently employs a Manager and two full-time Technicians. For inquiries and more info, please call Mark at 908-670-7798.

New! Parts For Sale: Incon TS-1000 tank monitor works well just taken out of service. Printer is aprox 2 months old. Also, Incon 8, tank probes. System replaced because on an Exxon upgrade. Call John Twin Towers Exxon (201) 224-8444