F... gas prices

[mredskins]

Originally Posted by Schneed10

It might have something to do with it being impossible to fix the busted oil rigs, pipelines, and refineries overnight.

But I'm sure the more likely explanation is an industry-wide conspiracy to gouge you of every red cent.

If Texas makes a quarter of our gas why does that affect all of the gas prices?

To be honest I have a two mile round trip commute to work each day (I walk most days) so it is not a big deal to me. I just feel for people who are hand cuffed by gas prices.

[onlydarksets]

Originally Posted by Schneed10

It might have something to do with it being impossible to fix the busted oil rigs, pipelines, and refineries overnight.

But I'm sure the more likely explanation is an industry-wide conspiracy to gouge you of every red cent.

Even if everything was immediately 100% operational, it would still take a week or so to get back down to the previous price. That's just businesses being cautious - it's not a conspiracy.

[firstdown]

Originally Posted by onlydarksets

Even if everything was immediately 100% operational, it would still take a week or so to get back down to the previous price. That's just businesses being cautious - it's not a conspiracy.

Well I have taken your view in the past but the increase in price and or the effect from Ike could not have allready hit the stations around the US. So the gas in the ground at these stations was paid for at the lower cost before Ike so it should have not made pricees jump like this. Now after the stations have to refuel with more expensive gas then I could understand the jump in price.

[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.

[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.

[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.

[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

[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.

[dmek25]

thank you jsarno. the voice of reason. and i think this is the first time we actually agree on something

[jsarno]

Originally Posted by dmek25

thank you jsarno. the voice of reason. and i think this is the first time we actually agree on something

Holy crap, the sky is falling!

JK, we have agreed on more than you think, although doesn't seem like it here in recent months.