gasoline prices

preciousjeni · #1 03-12-2008, 03:21 PM

Quote:

Originally Posted by ree-Xi

What I don't understand (and if someone who is clued in can explain) is how the oil companies raise the cost of a barrel of oil. Let's say that two weeks ago, the cost per barrel was $60. It's at $70 today because a storm blew over a rig in the Gulf. Suddenly, Joe Schmo's Gas station raises the cost per gallon from $3.19 to 3.31, although he bought his gasoline at the $60 per barrell cost. How is that justifiable?

If only... we're closing in on $110/barrel. To attempt to answer your question, there is always a delay in the increase or decrease at the pump because of what you're talking about. But, it looks like you might not realize how quickly gasoline is consumed at gas stations. Most larger gas stations get their gas once a day or once every few days. Gas stations don't make a much of a profit on the gas - they make their money in the convenience store. It's the local government that rakes it in with the tax on gas.

Gas stations also play a balancing game with the price. Too much = consumers go elsewhere. Too little = not enough money to pay for the next day's gas off the truck and the gas runs out...end result, consumers go elsewhere.

Sister Havana · #2 03-12-2008, 03:51 PM

Gas prices jumped up to $3.43-$3.45 around here yesterday. I filled up (had half a tank left) at "only" $3.27 at a station that hadn't yet increased prices.

AGDee · #3 03-12-2008, 03:59 PM

I was excited to find a station that was at $3.19 yesterday. Most were $3.29. I was kicking myself for not buying it the night before when it was $3.09.

Then I think "It's really pathetic when I'm happy to pay $3.19."

ree-Xi · #4 03-12-2008, 06:35 PM

Here's an idea... let's cut the gasoline tax and recoup it with increasing tax on cigarrettes!

We need gasoline (and home heating fuels)...no one NEEDS cigs!

Thetagirl218 · #5 03-13-2008, 12:58 AM

Quote:

Originally Posted by ree-Xi

Here's an idea... let's cut the gasoline tax and recoup it with increasing tax on cigarrettes!

We need gasoline (and home heating fuels)...no one NEEDS cigs!

The State of Florida is acutally thinking of raising the cigrraate tax by a dollar and a half. They are facing a huge deficit this year, thanks in part to our crazy governor who loves to spend money we just don't have! Ok, I will end my rant now!

texas*princess · #6 03-13-2008, 08:47 AM

I live about 2 miles away from my office, and everywhere else I would possbily need to go is within about a 20 mile radius..... Generally I fill up my tank about once .. *maybe* twice a month.

Gas prices here used to be bad... then they went down again ($2.80/$2.90 range).. then all of a sudden it went up to $3.05... Ok cool.

Then I fill up my tank last week and it's $3.35/gal for the cheap stuff!

Wowzers.

Supposedly it's only going to get worse. Maybe this is the scary media trying to freak everyone out, but I hear it's going to be over $4/gal for the cheap stuff by the end of Spring

twinkle555 · #7 03-13-2008, 11:34 AM

Quote:

Originally Posted by texas*princess

Supposedly it's only going to get worse. Maybe this is the scary media trying to freak everyone out, but I hear it's going to be over $4/gal for the cheap stuff by the end of Spring

^^^oh shiz...$4/gal = I will die of starvation and be in debt til Im 90.

ree-Xi · #8 03-13-2008, 11:30 AM

Quote:

Originally Posted by preciousjeni

If only... we're closing in on $110/barrel. To attempt to answer your question, there is always a delay in the increase or decrease at the pump because of what you're talking about. But, it looks like you might not realize how quickly gasoline is consumed at gas stations. Most larger gas stations get their gas once a day or once every few days. Gas stations don't make a much of a profit on the gas - they make their money in the convenience store. It's the local government that rakes it in with the tax on gas.

Gas stations also play a balancing game with the price. Too much = consumers go elsewhere. Too little = not enough money to pay for the next day's gas off the truck and the gas runs out...end result, consumers go elsewhere.

Thank you for breaking this down for me. I didn't understand how quickly the domino effect happened.

kstar · #9 04-23-2008, 08:18 PM

Quote:

Originally Posted by preciousjeni

If only... we're closing in on $110/barrel. To attempt to answer your question, there is always a delay in the increase or decrease at the pump because of what you're talking about. But, it looks like you might not realize how quickly gasoline is consumed at gas stations. Most larger gas stations get their gas once a day or once every few days. Gas stations don't make a much of a profit on the gas - they make their money in the convenience store. It's the local government that rakes it in with the tax on gas.

Gas stations also play a balancing game with the price. Too much = consumers go elsewhere. Too little = not enough money to pay for the next day's gas off the truck and the gas runs out...end result, consumers go elsewhere.

Actually, this isn't quite true. Per gallon prices are figured out using a complicated method that uses the estimated price per barrel that will be in two weeks- the time it takes to turn crude into gasoline. (Per my friend who is a regional manager for a chain of gas stations.)