F... gas prices

[mredskins]

Originally Posted by mredskins

funny how it can go up .54 cents overnight but it takes a few weeks for it to adjust down. pffff...

I stand corrected my gas dropped .15 cents over night. Amazing.

[mredskins]

Originally Posted by mredskins

I stand corrected my gas dropped .15 cents over night. Amazing.

This may be the reason.

wjz.com - Md. Comptroller Eases Gasoline Blend Rules

[724Skinsfan]

If I'm not mistaken. If you are purchasing gas to sell at a station you need to have the cash available for future purchases. Let's say you buy 100 gallons of gas for $100 now. You sell it for 10% markup and make $110. You have made $10 profit. Now next week gas goes up to $120 for 100 gallons. You don't have enough from last week's sales, you're $10 dollars short. Thus you need to sell it at a price that believe will keep you operational. There is no conspiracy only entrepreneurship.

[onlydarksets]

Originally Posted by 724Skinsfan

If I'm not mistaken. If you are purchasing gas to sell at a station you need to have the cash available for future purchases. Let's say you buy 100 gallons of gas for $100 now. You sell it for 10% markup and make $110. You have made $10 profit. Now next week gas goes up to $120 for 100 gallons. You don't have enough from last week's sales, you're $10 dollars short. Thus you need to sell it at a price that believe will keep you operational. There is no conspiracy only entrepreneurship.

I'm pretty sure my local gas station ran into this problem, where they didn't have enough gas left in their pumps to cover the increase in price. Instead, they ran out of the low-test for at least a few days. Now, it's also possible that their delivery was late, but I've never seen them without gas for more than a day.

[firstdown]

Originally Posted by 724Skinsfan

If I'm not mistaken. If you are purchasing gas to sell at a station you need to have the cash available for future purchases. Let's say you buy 100 gallons of gas for $100 now. You sell it for 10% markup and make $110. You have made $10 profit. Now next week gas goes up to $120 for 100 gallons. You don't have enough from last week's sales, you're $10 dollars short. Thus you need to sell it at a price that believe will keep you operational. There is no conspiracy only entrepreneurship.

So you really think that the minute the gas hits their tanks they have to write a check to the truck driver. I find that hard to believe and most businesses have 30 days to pay their bills to venders and remember thay have a contract with their vendor weather its Exxon, Moble 1, Shell etc... Its not like they just pick up the phone and just call whoever for their gas and pay COD. I think its just an excuss to hit us up anytime something happens. I'm not saying this is the Oils Co's doing this its the gas stations which are independently owned.

[GhettoDogAllStars]

I'm using e85, and it's only $2.69 / gallon. I get about 15 MPG with e85 and about 19 MPG with 91 octane. You gotta do the math to see which is cheaper, but right now I'm going with e85. I save about $20 per fill-up with e85.

[mredskins]

Originally Posted by GhettoDogAllStars

I'm using e85, and it's only $2.69 / gallon. I get about 15 MPG with e85 and about 19 MPG with 91 octane. You gotta do the math to see which is cheaper, but right now I'm going with e85. I save about $20 per fill-up with e85.

They usually only sell that on the highways down south.

[GhettoDogAllStars]

Originally Posted by mredskins

They usually only sell that on the highways down south.

Yeah, when I lived in Florida I couldn't find any place that sold it. Now I live in Colorado, and there's a place a couple miles from my house that sells it. It would be nice if more stations carried it, because it will never catch on the way it is now.

[dmek25]

the price of a barrel of oil hit a high of around 140/ per. gas prices around here hit a high of around 4.00 a gallon. now that oil is under a 100.00/ barrel, why did the price of gas only drop roughly .40 a gallon? im sure schneed has a logical reason to why its OK that us Americans are allowed to be ripped off

[jsarno]

Originally Posted by dmek25

the price of a barrel of oil hit a high of around 140/ per. gas prices around here hit a high of around 4.00 a gallon. now that oil is under a 100.00/ barrel, why did the price of gas only drop roughly .40 a gallon? im sure schneed has a logical reason to why its OK that us Americans are allowed to be ripped off

It's profits of course!

They will tell you that they purchased the inventory at that higher price, so therefore until the inventory is gone, they need to charge the old amount to break even (or make a profit). However, they go up in price instantaniously even though their inventory is of the old price...so this means only one thing, PROFITS.

[GTripp0012]

Originally Posted by dmek25

the price of a barrel of oil hit a high of around 140/ per. gas prices around here hit a high of around 4.00 a gallon. now that oil is under a 100.00/ barrel, why did the price of gas only drop roughly .40 a gallon? im sure schneed has a logical reason to why its OK that us Americans are allowed to be ripped off

You do understand that if gas stations could afford to lower prices any future, the fact that they are in competition with one another would drive the price down, right?

I don't claim to be an expert, it's really just common sense. If a gas station could do something to outsell all their competition, they definately would.

The reason they can't go any lower with their prices is because they can't afford to stay in business in doing so.

[GhettoDogAllStars]

Originally Posted by GTripp0012

You do understand that if gas stations could afford to lower prices any future, the fact that they are in competition with one another would drive the price down, right?

I don't claim to be an expert, it's really just common sense. If a gas station could do something to outsell all their competition, they definately would.

The reason they can't go any lower with their prices is because they can't afford to stay in business in doing so.

Exactly. The profit margin on gasoline is very small. Stations make more profit on a cup of coffee than they do on a gallon of gas.

[jsarno]

Originally Posted by GhettoDogAllStars

Exactly. The profit margin on gasoline is very small. Stations make more profit on a cup of coffee than they do on a gallon of gas.

Well, that's anyone. A cup of coffee is what...$2? (I don't drink coffee, I don't know) But it only costs around .15-.20 cents or possibly less to make, so that's a nice big profit.
That being said, there is no argument that the gas companies are making record profits, more than double what they used to make, so for them not to drop the prices in accordance to what the price per barrel is, is gouging the country.
You can't say "well there are other reasons". That's simply not true. Look at the price of gas years ago when the price per barrel was under $100, the price per gallon was a lot less than it is now and they didn't go out of business because of it. The gas companies have been waiting for this to make much larger profits.

Everyone incorrectly blames Bush...it's the gas companies. Guess what, no matter who becomes our president will still have this problem too. Until we get off our dependancy for the "black crack", we will remain in this situation.

[GhettoDogAllStars]

Originally Posted by jsarno

Well, that's anyone. A cup of coffee is what...$2? (I don't drink coffee, I don't know) But it only costs around .15-.20 cents or possibly less to make, so that's a nice big profit.
That being said, there is no argument that the gas companies are making record profits, more than double what they used to make, so for them not to drop the prices in accordance to what the price per barrel is, is gouging the country.
You can't say "well there are other reasons". That's simply not true. Look at the price of gas years ago when the price per barrel was under $100, the price per gallon was a lot less than it is now and they didn't go out of business because of it. The gas companies have been waiting for this to make much larger profits.

Everyone incorrectly blames Bush...it's the gas companies. Guess what, no matter who becomes our president will still have this problem too. Until we get off our dependancy for the "black crack", we will remain in this situation.

"What does the average oil company make today on the sale of a gallon of gas? Ten cents.

The federal tax on gasoline, on the other hand, is nearly twice that. Then there's state gasoline taxes. (If you live in New York, for example, you're paying 68 cents a gallon in taxes.)

If Exxon is gouging us at ten cents a gallon, what exactly is the federal government doing to us at 18.4 cents a gallon?"

Oil Company Profits

The Tax Foundation - State and Federal Treasuries "Profit" More from Gasoline Sales than U.S. Oil Industry

[Beemnseven]

Originally Posted by jsarno

Well, that's anyone. A cup of coffee is what...$2? (I don't drink coffee, I don't know) But it only costs around .15-.20 cents or possibly less to make, so that's a nice big profit.
That being said, there is no argument that the gas companies are making record profits, more than double what they used to make, so for them not to drop the prices in accordance to what the price per barrel is, is gouging the country.
You can't say "well there are other reasons". That's simply not true. Look at the price of gas years ago when the price per barrel was under $100, the price per gallon was a lot less than it is now and they didn't go out of business because of it. The gas companies have been waiting for this to make much larger profits.

Everyone incorrectly blames Bush...it's the gas companies. Guess what, no matter who becomes our president will still have this problem too. Until we get off our dependancy for the "black crack", we will remain in this situation.

Can you give us a definition of "gouging" ?? What amount in profit is acceptable to you before it becomes "gouging" ?