Gasoline: in your neck o' the woods

[madcowdisease]

I know judging by the title of this thread it sounds like it might be about discussing futures. But, I am starting this to vent about a peeve of mine.

Like many of you I follow, and have follwed, the price of crude per barrel for over a year now. For quite some time there seemed to exist a linear correlation between the price of gasoline and the price of crude. If crude went up a dollar, gasoline would be up 10 cents (hypothetical example).

But lately, there seems to be a disproportionate increase in the price of gasoline relative to crude. If crude goes up 27 cents per barrel gasoline will increase 33 cents per gallon (actually happened). This is just one instance where I have noted, mentally, this disproportionate increase.

I'm not naive to the partial independence of gasoline from crude oil due to refinery shortages or scarce supply of ethanol. But, this seems like a substantial increase, dare I say gouge?


Another thing that irritates the hell out of me is the rate at which these prices increase. Gas will jump 30 cents a gallon in a day if oil is up a buck but no one came to change the gasoline in the ground that day. I asked a station owner about this phenomenon and he said he recieves notice from, in this case Marathon, on what to charge. But my understanding is that is the floor. He can charge higher if the owner across the street decides to as well. This is why you see the rates higher typically around highway exits. Higher demand allows these gas stations to engage in collusion.

But back to the rate of increase. What bothers me is it will jump 30 cents a gallon in a day, but may take all week for the price to come back down. Even with oil tumbling I saw stations around here charging $2.95 for 87 octane. They're real quick to jack up the price but when it comes to lowering it...eh, that can wait. These ppl are a bunch of asses.

There ought to be a proportionate relationship between the price of the futures and the price at the pump. These ppl are making a killing being lazy in changing the signs to the downside but jacking them up at the first sneeze of some sheik.

So what are prices where you live? I'm in SW Ohio and it's on average 2.82 with $2.95 being the highest and $2.76 the lowest. It should be coming down with oil tumbling since these ar the same prices of petrol when oil was above $70/barrel, but don't hold your breath waiting for these crooks to lower it.

[NATHAN LLOYD]

Another thing that irritates the hell out of me is the rate at which these prices increase. Gas will jump 30 cents a gallon in a day if oil is up a buck but no one came to change the gasoline in the ground that day.

There ought to be a proportionate relationship between the price of the futures and the price at the pump. These ppl are making a killing being lazy in changing the signs to the downside but jacking them up at the first sneeze of some sheik.

So what are prices where you live? I'm in SW Ohio and it's on average 2.82 with $2.95 being the highest and $2.76 the lowest. It should be coming down with oil tumbling since these ar the same prices of petrol when oil was above $70/barrel, but don't hold your breath waiting for these crooks to lower it.

I think a lot of these same thoughts. I'll tell my fiancee the price of oil is down (the gas futures will be down too), and I'm like don't expect to see it at the gas pump. I don't think you understand how good gas stations have it until you start following the markets. I mean they collect a lot of money without even having to serve someone. Customers pull up, use their card, get gas, and leave. The cashiers get paid hardly anything. I'd love to own a gas station one day. Maybe we could be partners and work in collusion across the street from each other. ;)

[madcowdisease]

I think a lot of these same thoughts. I'll tell my fiancee the price of oil is down (the gas futures will be down too), and I'm like don't expect to see it at the gas pump. I don't think you understand how good gas stations have it until you start following the markets. I mean they collect a lot of money without even having to serve someone. Customers pull up, use their card, get gas, and leave. The cashiers get paid hardly anything. I'd love to own a gas station one day. Maybe we could be partners and work in collusion across the street from each other. ;)

Count me in.

[CapeCodSue]

The middle men may be making a killing, but the people who own the stations are only allowed to make a few cents above what they pay - and most of that gets eaten up by the huge credit card processing fees. A lot of the station owners around here are having a hard time.

Regular is 2.97 to 3.14 on Cape Cod. Probably won't drop much because they like to gouge the summer visitors.

[Hanger]

It was 2.89 yesterday when I filled up my BULLISH Gas HOG SUV lmao....

Outside of Chicago, in the city supposedly they are getting hammered, because of the county, city, state tax...

[xboilermaker]

CapeCodSue has it right. Most of the stations are owned by the Majors or their distributors, but in the rare case where there is a mom and pop owner the distributor actually charges more for the gas than you can fill for at a company owned station. I know it seems rediculous but for 20 years I was an independent owner, and the distributor puts in his signage, pumps, and equipment and claims that the upkeep is why you pay more, and you can only buy from him. I had a tank leak in '97, and guess who owns the tanks. There is no money in gasoline except for the fatcats. All your friendly convenience store managers profits come only from convenience/grocery/alcohol sales. PS; I did just fine in the 2 years without gasoline until retiring to Puerto Rico when I was 59, in 1999. And with lot fewer headaches once I paid the bills for the cleanup.

[NATHAN LLOYD]

Well, there goes that idea. I lost 7% this week. That makes me up only 7% for the month. I was to much of a bear this week. Have a good weekend all. I'll be driving about 1800 miles this weekend. I hope to find some good gas prices between NC and Baton Rouge. South Carolina is a definite stop for a fill up.

[oldboldpilot]

You're lucky not to live in California where the gas is #2.14/gal. for the privelege of living in a state with 36 million other nuts. Gas is taxed to the point where the air is green with the money the state takes in each and every commute day ! Doncha just love it ?

[aiki14]

Paying $2.97 in the Philly Burbs and $2.87 on the eastern shore Maryland for reg unleaded. Not really feeling too much pain. Travel to Australia, N.Z. and Japan earlier this year made our prices seem quite a bargain.

[MoMoney4Me]

Here in the suburbs 40 miles northwest of Atlanta along I-75 we're paying $2.72 for 87 octane gasoline. The diesel I burn in my work truck is going for $2.98

Like xboilermaker I ran a mom and pop full service station back in the mid 80's. If not for the service stalls and bit of retail products in the store, we could'nt have kept the doors open as long as we did. Back then gasoline was selling for about $0.69 a gallon and we cleared a nickel on it. It was the refiners and distributors that raked in all the profits.

Our downfall was in trusting locals with credit, mostly good people that wanted to charge their auto service and gasoline and come by and pay off at the end of the week. It's amazing how invisible people become after they run up a tab of a few hundred dollars. And for every dollar charged it costs the dealer two, one for the gas charged and another to put more in the ground to replace it. You get that and a few that want to steal you blind in the store while you're outside checking their oil and cleaning the windshield. Three years of uncollected depts mounting to the tune of $20,000 will make a little guy padlock the doors.

No wonder everything is self service these days, and the big guys are raking it in hand over fists!