Hawaii Fueling Network Expands
Chevron Clerk Mistake Brings $19 Million Lottery Win
Court Rules Idaho Cannot Tax Motor Fuels on Reservations
Ban on Tobacco Advertising is Overturned
Sunset Beach Chevron Closes

HAWAII FUELING NETWORK EXPANDS

KAHULUI, HI. — Maui Petroleum has expanded its Hawaii Fueling Network, a commercial cardlock network on the Hawaiian islands, by linking with the Minit Stop 76 service stations.

The Hawaiian cardlock has been growing rapidly as the price of gasoline and diesel on the islands continues to edge higher above the $2.00 per gallon mark.

Although the Hawaii Fueling Network has been in existence for the last 12 years, "Our biggest challenge was to integrate our card system into the existing system at Minit Stops," said Steve Wetter of the HFN, talking with local reporters. "Finding a way to make them compatible took longer and cost more than we expected."

In the year since the HFN added the Minit Stop stations, membership in the network has doubled to approximately 2,000 customers on the Hawaiian islands.

Wetter says that he markets the HFN system "through word-of-mouth, targeted promotions, and direct mail. There is a different discount depending on whether it’s a group user or a commercial account."

Wetter estimated that 85% of the current network card holders use less than 3,000 gallons per month.

CHEVRON CLERK MISTAKE BRINGS $19 MILLION LOTTERY WIN

TUSTIN, CA. — A mistake made by a new clerk at a Chevron station here is credited for allowing two men to win $19 million in the California Lottery.

Chevron Clerk Balwinder Nijjar sold a $2.00 "quick-pick" lottery ticket to two local car salesmen and accidentally entered a lump-sum payment option instead of the 26 annual installment option. Nijjar, who had been working at the station for two weeks, voided the original ticket and issued second lottery ticket with new computer-chosen numbers.

The second ticket matched the numbers that were drawn that evening, bringing the salesmen the $19 million jackpot.

"I am so happy that my mistake made him a winner," said Nijjar.

Nijjar’s error also brought a windfall to the station which receives .5% of the prize amount as a bonus for selling the ticket — approximately $90,000.

COURT RULES IDAHO CANNOT TAX MOTOR FUELS ON RESERVATIONS

BOISE, ID. — The Idaho Supreme Court has ruled that states do not have the right to tax motor fuels sold on Indian Reservations, according to a ruling handed down in early July.

The state of Idaho had petitioned the court to allow it to tax motor fuels under the Hayden Cartwright Act. Passed in the 1930s, Hayden Cartwright gave states the ability to collect taxes at federal facilities — such as military bases — within their borders. The state had argued that Indian Reservations, which were established by the Federal Government, would be subject to the Act.

In making its ruling, the court decided that Hayden Cartwright did not apply because no specific mention was made of Native American lands in the Act.

BAN ON TOBACCO ADVERTISING IS OVERTURNED

WASHINGTON, D.C. — The U.S. Supreme Court has ruled that a ban on outdoor advertising for tobacco is unconstitutional and must be removed.

The Supreme Court ruling invalidates a law on the books in Massachusetts that prohibits any outdoor advertising for tobacco products. Included in the ban were in-store displays of tobacco products, any in-store advertising or signs for tobacco products that could be seen from the outside as well as more traditional billboards and bus signs.

Five tobacco companies — Lorillard, Brown & Williamson, R.J. Reynolds, Philip Morris, and United States Tobacco Co. — filed suit against the state of Massachusetts, claiming that the state’s law violated their First Amendment rights of free speech.

The National Association of Convenience Stores had submitted an amicus curiae brief in support of the tobacco companies’ position.

Writing on behalf of the Supreme Court, Justice Sandra Day O’Connor noted that under the First Amendment states cannot ban advertising of a product that remains legal for sale to adults.

The Supreme Court ruled unanimously to strike down the advertising ban at the end of June.

SUNSET BEACH CHEVRON CLOSES

SUNSET BEACH, HI. — The Sunset Beach Chevron station, the only gasoline station in the North Shore Oahu town, has been closed after 27 years in the business.

According to station owners John and Lynn Pahk, the high price of gasoline combined with the costs of compliance with government regulations had made it difficult to stay in business. When Costco began selling gasoline at their warehouse in Mililani, the volume at the Chevron station began to fall and the Pahks believed they could no longer stay in business.

"Your profit margin is in the pennies already," said John Pahk, "so it goes down to almost nothing. The economy, the expense of doing business, and the margin of profit don’t add up."

Local residents are concerned about the loss of the Chevron station; not only did it house the only gasoline in town but it was also the only place to get an auto repair in the Sunset Beach area.

The nearest gasoline station is eight miles outside of Sunset Beach; the nearest auto repair shop is further down the road.

"A lot of people went there for gas and excellent repair service," said local resident Denise Antolini who told local reporters she bought all of her gasoline at the Pahk’s station. "It was a really valuable community resource and the Pahks were very caring and ran a good business, so I think it’s a real tragedy for the community."

Originally published in the August 2001 issue of O&A Marketing News.
Copyright 2001 by KAL Publications Inc.