Primarily Petroliana Shop Talk Forums Shop Talk Petroliana Forums General Petroliana Discussion Gas Prices

Gas ranges here today from $2.25 to $2.65. Hard to believe that much difference in just a couple of miles.

Doug.....just because fuel prices are down 50% does not mean consumption is down 50%.... thats not quite the way it works, there are a few more factors to the equation & its a little more complicated than that....... i am no expert, he ran off this site & his name is Pablo, i was very happty to hear from him today on another issue....

I'll try & explain the best i can...

..Consumption is down......... however production & supply is up........ when our dollar started getting stronger , crude prices went down so we get more crude for the dollar......

I am sure there there is much more to the equation, however the experts will have to handle that one & one of them is no longer here.........Pablo , come back & visit.......

China and other foreign entities consumption is down on several commondities. Steel prices reflect those of petroleum. Supply is high in oil/gas, Cushing and other holding facilities are heavy.....prices fall. Production has remained strong but much below $60 and production will slow. Several think the bottom is yet to come, maybe around $50 and then a steady/gradual incline back to $100+ over a sustained period of time.

BTW in Tulsa 1.87 and that is not necesarily a joyful event to many in this area.

$1.75 in KCMO.

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It is true that the oil companies set the price per gallon everyday and the owners for the most part go by that number ?

Thanks Doug

I wouldn't classify that statement as true. There is a "rack" price from the refinery that is in flux daily. Price at the pump is the rack price plus state/federal taxes, distributors profit, transortation, etc. Gasoline is bad business for most station owners with per gallon profit in the .02-.06 range depending upon payment method. They want your fountain drink, tobacco, candy, etc money b/c they make virtually nothing on gasoline.

1.99 here in St.Clair tonight

It's still over 2.50 around here. South Florida used to be cheap but now is a rip-off in so many ways. At least dad's getting a free ride in his Mercedes with my veggie oil Tokheim 300 which has been working flawlessly.

With a 40 cent difference in price in Longview Wa i find a 2 to 6 cent profit hard to swallow.

"It is true that the oil companies set the price per gallon everyday and the owners for the most part go by that number ?"
Thanks Doug


I'm not sure the oil companies or anyone else for that matter know how the price is set. Here in the SW Chicago suburbs you'll pay a dime more a gallon in the more affluent white towns (located in Will County, no gas tax) than you will in the poorer black towns like Robbins (Cook County, 6 cent gas tax, I believe), so there's a difference of 16 cents/gallon. Brother-in-law ran a Dominicks Food Store (with gas station) in Romeoville and every morning headquarters would call and ask what gas prices were at the BP station across the street. Gas prices would then be adjusted to match.
Some of the highest prices I've noticed over the years are at a Citgo station in Lemont where the Citco refinery is directly across the street, although I've been told that all the refineries in the area make blends for different parts of the country and not the blend used in this area. Doesn't seem right that a company would pay to transport fuel from another locality when it's already here but after being in the work force for over 30 years and seeing how management thinks nothing surprises me anymore in this country.
Ken

1.99 to 2.10 here.

Okoil1 has is right as far as margin on gas (gas only today). I was ****** that 20 years ago when my father didn't let me in on the biz, now I thank him. What a painful living for an independent owner today...sporting goods, soda, chips & candy kept it going. Thank god he was able to sell the realestate and retire.

Kim


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I'm not sure what the profit margin on gas is. I do know that at a major intersection here gas is $2.25 at the Arco minit-mart and $2.40 across the street at the Texaco minit-mart. Their costs should be close to equal as far as land taxes and merch. Soooooooo.... why such a difference in price? Also no minit marts have gone under, atleast around here. In fact a couple new ones have opened. Someone must be making money. We even now have gas pumps outside of Safeway and Fred Meyer and Wal-Mart is getting ready to break ground on a Super Store with pumps. Just makes me wonder.

Gasoline/fuel has always been a way to get the consumer to stop. Stations have always made the majority of their money on TBA's [tires, batteries, accessories & SERVICES].

Remember years ago when you paid the outside attendant ? Besides paying for fuel, what else did you buy ? Not much.

They learned that if you had to pay inside, you'd probably buy something else [soda, candy, cig's, snacks]. Most items inside have a 30-50% markup/profit than gas & oil.

On a long trip, how many times have you stopped Just for a snack W/O getting fuel ? If your like me [forbid], never. I wait till I need fuel.

Thunder's gas saving HONDA !



[This message has been edited by Dick Bennett (edited 11-08-2008).]