What's up with Diesel prices? - Page 3 - PeachParts Mercedes-Benz Forum

aklim · #31 09-21-2007, 10:25 AM

Quote:

Originally Posted by Craig

I guess it depends on whether you are selling or buying.

Read the report, the CPI for energy is actually down, although the petroleum portion is up a little. A modest amount of growth (and inflation) is healthy, why do you think the fed reduced interest rates a few days ago?

Well, I am going off a layperson's idea here since I am not too well versed in this stuff. The way I see it, if the price of gas goes up, since most of us are on gas, it costs us more money to do anything. So, we might have to cut down some of the stuff we do. Also, it costs me more money to go to work. Again, now I have the same money but it buys less.

aklim · #32 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.

#33 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 · #34 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.

#35 09-21-2007, 10:44 AM

Quote:

Originally Posted by aklim

Well, I am going off a layperson's idea here since I am not too well versed in this stuff. The way I see it, if the price of gas goes up, since most of us are on gas, it costs us more money to do anything. So, we might have to cut down some of the stuff we do. Also, it costs me more money to go to work. Again, now I have the same money but it buys less.

Yes, I do understand the short term concern. However, the extra money you spend on fuel does go back into the overall economy, just like you spent it at starbucks on a $5 coffee. I'm not an economist either, but I think the general idea is to have all the economic sectors growing at a similar rate. We don't want energy prices to be too far ahead or behind the overall growth rate. In theory, all of our incomes will also grow at a similar rate (regardless of what sector we work in). If the entire U.S. economy grows at a couple/few percent per year without excessive inflation, all will be well. We do not want to let the overall economy (prices or wages) stagnate, remember the rest of the world's economies are also growing (china is growing at well over 10% per year at the moment), and we also want to keep the dollar (reasonably) strong compared to other currency.

Jom W124 300D · #36 09-21-2007, 10:53 AM

in Australia we pay $5 per gallon for dino diesel ($1.33 per liter)

tjohn · #37 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 · #38 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 · #39 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.

aklim · #40 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.

Knightrider966 · #41 09-21-2007, 11:44 AM

Quote:

Originally Posted by lietuviai

All because people are buying crap made in china fueling their economy.

Still want to keep buying chinese crap? We all lose!

AMEN TO THAT! WALMART SUCKS..... the life out of our communities!

aklim · #42 09-21-2007, 11:51 AM

Quote:

Originally Posted by Knightrider966

AMEN TO THAT! WALMART SUCKS..... the life out of our communities!

Why? You the consumer told them what you wanted to buy and you blame them for granting your wish? You expect them to sell something that you won't buy?

dukegrad98 · #43 09-21-2007, 12:02 PM

I paid $2.65 for B99 here in TX this week.

Fuel stations all sell their gas/diesel/whatever at replacement cost plus margin. The trickle-down effect of a price increase is more or less instantaneous. What they sell you a gallon for today depends only upon what it will cost them to replace that gallon -- not what they paid to put it in the underground tank a week ago. Think it through and you'll see it's the only way that makes any sense for them to operate.

Cheers, John

junqueyardjim · #44 09-21-2007, 12:03 PM

I think that is pretty obvious. The Oil companies are making obscene profits, and Uncle Sam is just standing by with a big ***** eating grin on his face. The week before Labor Day gasoline in Central Indiana gas was about $2.70. Then on Tuesday before Labor Day, over night prices rose to about $3.05. They did not come down quite so fast, but all did come down the week following Labor Day and about all over it is again $2.70. Diesel has remained pretty steady at just about or a little above $3.05 at the diesel car pumps. We all have pretty bad short term memory on this stuff, but 4th of July and Memorial day was the same thing. The Oil Companies are always crying "shortage". There is no shortage. If there is a shortage, you have people lined up at the pumps. Have you seen any lines at the pump. Have you seen station Driveways blocked with a sign saying, "Sorry, out of gas" It's all BS and they are ripping are heads off at the same time. It would be wonderful if we could find a way to even the score. Short of not using the rotten stuff, I sure don't see how.

dukegrad98 · #45 09-21-2007, 12:18 PM

Quote:

Originally Posted by junqueyardjim

There is no shortage. If there is a shortage, you have people lined up at the pumps. Have you seen any lines at the pump. Have you seen station Driveways blocked with a sign saying, "Sorry, out of gas" .

The reason you don't see these problems is precisely because we have market-controlled prices. Go ahead, put a price cap on fuel. Watch supplies dry up and lines form -- the oil crunch from the '70s all over again. It would be truly the dumbest thing you could do for the consumer, for the producer, and for the economy. (I didn't stay at a Holiday Inn Express last night, but high school economics is enough to help you figure this one out -- and I have an economics degree, thanks.)

Oil company profits are hardly obscene. Yeah, the numbers look enormous when reported by the liberal excuse for media in this country. But did you ever do the percentage calculation on it? Plenty of other companies and industries make FAR larger margins / returns on capital than ExxonMobil and others. The public is just largely uneducated about how to look at these issues, and they all love to pretend it's a right-wing conspiracy.

If it'll make you feel better, you can participate in those "obscene" profits by buying some stock. Better yet, do what I did -- find yourself some actual royalties on producing wells. With $50+ per barrel oil (nevermind the current price near $80!), I get to make more money walking to the mailbox than going to work every day. I don't cry for people who don't understand the game.

Cheers, John