Gas Prices
- Thread starter derek
- Start date
PetersCreek
Brother Borealis
Of course, gas is selling for more than I want to pay. But the world doesn't revolve around me and my wants or needs.
To those who insist that it's going for more than it should, I pose the question, how much should it cost and why?
To those who insist that it's going for more than it should, I pose the question, how much should it cost and why?
In the interest of full disclosure I have to begin by saying that I work for a gasoline retailer that is about to merge with a refining company.
The reason fuel prices are so unstable is the commodities market. The speculators are driving up the price of gas. Contracts are bought and sold from six months to two years out. It's a crazy system.
Oil companies are making out. Refiners are making out. (One is about to plop down $70 million for my company.) Retailers are getting hosed. One of our competitiors lost $800,000 just last quarter selling gasoline. The price you are paying at the pump is as low as the retailers can make it. There is a tremendous amount of competition at the street level for your fuel dollar. All of the money is made before it gets to the gas station.
The reason fuel prices are so unstable is the commodities market. The speculators are driving up the price of gas. Contracts are bought and sold from six months to two years out. It's a crazy system.
Oil companies are making out. Refiners are making out. (One is about to plop down $70 million for my company.) Retailers are getting hosed. One of our competitiors lost $800,000 just last quarter selling gasoline. The price you are paying at the pump is as low as the retailers can make it. There is a tremendous amount of competition at the street level for your fuel dollar. All of the money is made before it gets to the gas station.
Who goes into a gas station anymore? :dunno:
PetersCreek
Brother Borealis
I seem to remember reading that the average profit for those stations is about 3% overall...including sales on the high-priced goodies.
$3.15 (and that's the cheapest in SD). some are past the 3.50 mark. and el centro is even higher! i bring all my 5 gallon jugs with me when i go to the river (yuma, az is at 2.70), fill em up, and bring em home!
jeff
jeff
Electric Sheep
Dsicle - BoM Dec 06
The timing on this could be better....I'm about to drive halfway across the country on vacation next week!
Fark....
Fark....
I meant this click here
