ENERGY

Many Circle K stations are still out of gas Wednesday. What's the latest?

Ryan Randazzo Mitchell Atencio
The Republic | azcentral.com
The Circle K on University Drive and Lindsay Road in Mesa was out of gas on March 20, 2019. Circle K said issues with its pipeline and supply source are causes for the shortage of fuel.

Circle K's network of gas stations in Arizona continues to struggle with its fuel supply. In a spot check of dozens of stations midday Wednesday, about one in five were out of fuel.

The company began having problems over the weekend, and a company spokeswoman blamed it on their supply of ethanol, a corn-based additive in gasoline. The precise cause of the disruption remains unclear, but it appears to be a Circle K ethanol-supply issue, not a broader statewide gas shortage.

What stations are affected?

Circle K stations have run out of gas in multiple locations in metro Phoenix as well as Tucson, Yuma and Casa Grande.

And while the problem seems widespread within the company, other stations appear unaffected. A Circle K station at Miller and Camelback roads in Scottsdale appeared to receive a shipment of fuel Wednesday morning even as customers fueled up at the pumps.

Of 30 Circle K stations from Yuma to Gilbert surveyed by The Arizona Republic Wednesday, six had no fuel, one had only premium and one was about to run out.

The company reports 644 stations in its Arizona and Nevada division, all corporately owned.

Who owns Circle K, and what is the company saying?

Circle K is owned by Canada-based Alimentation Couche-Tard Inc., which declined to provide specifics regarding how an international company with 7,800 stores in the U.S. and many more as far away as China, Egypt and Malaysia, could see some of its pumps in Arizona go dry.

The company's stock is traded on the Toronto exchange and it does not appear to have made any notifications to regulators regarding the Arizona issue.

"Circle K is experiencing fuel outages across Arizona due to a 'perfect storm' of unforeseen circumstances including isolated issues with its pipeline, refinery supply source and ethanol distribution," spokeswoman Donna Humphrey said via email Monday.

"The situation has been exacerbated by the customary fuel blend change at this time of year and high fuel demand due to spring break."

Arizona requires different blends of gasoline during different seasons to mitigate air pollution. Hot and cold weather create different air-pollution problems, so fuel requirements change with the seasons.

“Everyone in the Arizona Business Unit, Circle K’s global fuel department, and our supply partners are working hard to correct the situation,” said Tim Tourek, vice president of operations Arizona, in a prepared statement on Monday.

“We expect it will be several more days before we are back to full capacity. We greatly appreciate the patience of our customers as we do all we can to return to business as usual as soon as possible.”

What do state officials say about the cause of the problem?

The Circle K on University Drive and Lindsay Road in Mesa was out of gas on March 20, 2019. Circle K said issues with its pipeline and supply source are causes for the shortage of fuel.

State officials said there is no shortage of gas in the state.

The Arizona Department of Weights and Measures monitors the state's supply of gasoline and tests the fuel at various stages of the supply chain. While officials in that state department likely know what the problem is, they declined multiple requests from The Republic to explain the issue.

Rob Smook, a spokesman and lobbyist for the Arizona Department of Agriculture, which includes the Weights and Measures Department, said the issue appears isolated to Circle K.

"We are monitoring the situation," Smook said. "Our Weights and Measures division is watching data and watching fuel in the marketplace and everything we are seeing is there is enough fuel in the marketplace."

Where does Arizona's gas come from?

Arizona has no fuel refineries and gets its gasoline via pipelines from Texas and California.

The Arizona Corporation Commission regulates pipeline safety and spokeswoman Holly Ward said Monday there are no problems on those lines.

Once fuel is piped to the state it is stored in fuel terminals, blended with whatever additives a particular vendor specifies as well as with ethanol, and trucked to gas stations.

Reach reporter Ryan Randazzo at ryan.randazzo@arizonarepublic.com or 602-444-4331. Follow him on Twitter @UtilityReporter.

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