Excellent Point AGDee! In my opinion, and it sounds like you agree; I think that there are several layers involved in that net price that we are paying at the gas pump. Weather is good one. If the supply of oil will decrease, it will lead to a decrease in quantity demanded. Could another one be that it's an "Opportune time to make a little more money"?
The other layers of profit margin that are being baked into the net gas price, in other words, what my friends in GC and I are paying is what I'm really curious about. One might argue that an increase to the base price is being used to research new efficiencies, new deposits, etc in the business.
Quote:
Originally Posted by AGDee
While this seems like it would make sense, it's not what appears to happen in reality because if a gas station was only changing it's prices when they ordered new fuel and they only did that every 2-3 weeks, then gas prices would be stagnant during those 2-3 weeks. However, gas prices change day to day (on Friday, it was hour to hour), so that's not really what they're doing.
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