Quote:
Originally Posted by Boodleboy322
Good point Jojapeach!
There is certainly going to be a price disparity depending on region specfic supply/demand. For example, the Dallas-Ft. Worth MSA (Metropolitan Statistical Area) may have been at $4.00 (rounded appx. price) a gallon during record highs. However, a town in a different state may have only been $3.00 a gallon during record highs. We can assume that the gas companies were making profits during record highs. We can also research online and determine that companies like Exxon-Mobil made record earnings during the 1/4 end financials at the time that oil was at it's record highs. So the question is what is different between the time that the barrel to gallon ratio was at it's peak vs. now? Let's go back to the original equation. Take whatever your gas price high was and divide that number by 145. Whatever number you get take that and multiply by 96. This is where your gas price should be assuming that the gas station hasn't changed anything on how they are making money (i.e. overheard, charge of food items, beer, etc).
AGDEE points out, we know that the role of weather and it's impact to the source is determinant in figuring volatility. But even when that's factored in we still quite a spread.
This is good stuff. Thanks everyone.
|
OMG. Thanks for the equation that I was trying to figure out today. I must be gradually losing my mathematical skills while I embrace my writing skills. *sigh*
So, now I'm sad that my alleged gas price should be $2.74 according to that nifty formula. I paid $
3.79 on Friday.
