What's up with Diesel prices? - PeachParts Mercedes-Benz Forum

vstech · #1 09-21-2007, 10:18 AM

Quote:

Originally Posted by csp97

I work for an oil refiner, and I will tell you that the cost of production has nothing to do with the price we sell it for. We sell gasoline and diesel for the absolute most the market will pay for it.

We were making $25-$30 per barrel back in May. Right now we're making $10 per barrel. If we could set the price, believe me, it would stay at $25.

as with any business, it's the consumer that sets the price.
since katrina proved that the public will pay 4.00/gallon and up, the refineries will charge and continoue to charge. it hurts economy, but not the oil companies economy.

aklim · #2 09-21-2007, 10:28 AM

Quote:

Originally Posted by vstech

as with any business, it's the consumer that sets the price.
since katrina proved that the public will pay 4.00/gallon and up, the refineries will charge and continoue to charge. it hurts economy, but not the oil companies economy.

That contradicts what CSP97 just said.

#3 09-21-2007, 10:28 AM

Quote:

Originally Posted by vstech

as with any business, it's the consumer that sets the price.
since katrina proved that the public will pay 4.00/gallon and up, the refineries will charge and continoue to charge. it hurts economy, but not the oil companies economy.

I think he was saying that their margins are down, even with higher prices. They are not interested in the overall price per barrel, just their margin. I think history has show that american consumers will pay whatever it takes for energy, especially gasoline/diesel. All silly conspiracy theories aside, we are talking about a commodity with a market driven price. If "big oil" was calling the shots (instead of the market) energy prices would be much higher, at least at world levels, don't you think?

F18 · #4 09-21-2007, 10:40 AM

This past week traveling on business through New England I payed anywhere from 2.89 to 3.15 for dino diesel......and 3.15 for B20 and 3.69 for B100.

Winter is coming so Home Heating Oil took a jump at the same time. The range around me in southeastern Massachusetts is 2.40 to 2.72 and going up.
I will be shelling out about $300 just to top off my tank before it goes up anymore.

tjohn · #5 09-21-2007, 10:56 AM

Quote:

Originally Posted by Craig

If "big oil" was calling the shots (instead of the market) energy prices would be much higher, at least at world levels, don't you think?

Thank you for a post that makes sense. The price of crude recently went to record levels, and demand for diesel/heating oil traditionally increases in this country during cold weather months. If I own a gas station, I have to generate enough money to pay for the NEXT storage tank full of fuel, in addition to a reasonable profit. If I can clearly see that the next tank will cost more, I'd be silly not to raise my prices on the fuel that I currently have on hand to be sure I have enough to pay for that next tank... otherwise you're running in the red, and will soon be out of business. Like it/loathe it, this is just the market at work.

dbn1066 · #6 09-21-2007, 11:35 AM

What gets me: Last week when dino went up to $3.20 the place where I buy B100 raised their price to $4.26, an increase of $.50! Then ran out of it- no more for two weeks! I'm looking for another source...

aklim · #7 09-21-2007, 11:43 AM

Quote:

Originally Posted by dbn1066

What gets me: Last week when dino went up to $3.20 the place where I buy B100 raised their price to $4.26, an increase of $.50! Then ran out of it- no more for two weeks! I'm looking for another source...

What? You think the bio companies are in it for clean air, "no blood for oil", etc, etc? They charge more because suckers will pay more for it when you wrap it with those slogans.

aklim · #8 09-21-2007, 11:42 AM

Quote:

Originally Posted by tjohn

Thank you for a post that makes sense. The price of crude recently went to record levels, and demand for diesel/heating oil traditionally increases in this country during cold weather months. If I own a gas station, I have to generate enough money to pay for the NEXT storage tank full of fuel, in addition to a reasonable profit. If I can clearly see that the next tank will cost more, I'd be silly not to raise my prices on the fuel that I currently have on hand to be sure I have enough to pay for that next tank... otherwise you're running in the red, and will soon be out of business. Like it/loathe it, this is just the market at work.

As I have seen, they change the price when they get the new shipment.