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  #61  
Old 08-16-2006, 01:05 PM
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Join Date: Mar 2006
Location: Mount Holly, NC
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2.79 D 2.78 Rug

I don't buy it, there is a fixed price the big oil has to pay for crude.
out of that they produce maximum capacity of fuels, and sell it for maximum that the consumer will bear. cost of goods, plus cost of labor and maintanance of plants, = total cost, on top of that is the fed and state taxes that is tataled per gallon, above that is PROFIT.
it is possible, even likely that the service stations are not making much, but the suppliers are making profit hand over fist.
as to the stations, they charge what their estimated profit will be based on what they THINK the price of fuel will be when they need to refill. some are charged on a variable scale at the end of the month.
bottom line is this.
just like ANY OTHER BUSINESS, the price of fuel will continue to climb as long as the consumer continues to consume.
the ONLY reason fuel is not 5.00/gallon, is that would lessen the flow of $ into the pockets of the businesses selling the fuel.
last year when katrina hit, the spike in price due to the limited supply of fuel showed that we the public will pay any price for fuel. 3.00 average seems to be the point where consumption slows enough to lower profits, so the companies only spike above that for short times.
this winter the price dropped down below 2.00 only to keep the FLOW of $ up.
JMHO, but facts bear out my argument.
oh yeah, the federal gov only takes about .16 out of each Gallon, State varies, CA is around .75 I belive
John


Last edited by vstech; 08-16-2006 at 01:12 PM.
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  #62  
Old 08-16-2006, 01:07 PM
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Anyone can buy crude oil. Higher prices are a new market reality, driven by increased consumption, instability in the Mid east, and speculators and investors.

But this isn't the forum for such a discussion.
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  #63  
Old 08-16-2006, 02:08 PM
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I don't buy it, there is a fixed price the big oil has to pay for crude

Valero Energy the largest refiner in the US, buys their product from the producers at the market price. They have a trading division that goes to work at 4 am to start buying crude for their many refineries., so they won't run out of crude. It is a very complicated procedure. The big integrated oil companies like Exxon/Mobile are not subject to the daily whims of the market and so have an advantage.
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  #64  
Old 08-16-2006, 02:11 PM
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Correct, everyone pays the same price for crude more or less. But between then and the pump a lot of people can get there hands on it.
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  #65  
Old 08-19-2006, 10:02 AM
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Location: W. WI
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Last Friday I paid 32 cents less per gallon in St. Paul vs western Wisconsin $. I 'm sure if I searched I could have found a cheaper price in St. Paul. All the fuel sold in my town is semi tanker delivered. Guestimate: $2k to transport a thermos bottle of fuel 48 miles? Nice markup!
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  #66  
Old 08-19-2006, 01:37 PM
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$3.49 gallon here in Bellingham WA. 20 or so miles south of canada. THATS some expensive stuff!
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  #67  
Old 08-19-2006, 02:20 PM
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2.97 for premium, 2.77 for rug. 2.94 for diesel.

my gas station is one of many in a truck stop off route 11 in ohio. prices are 9 times out of 10 cheapest there.
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  #68  
Old 08-19-2006, 07:51 PM
xafman
 
Join Date: Jul 2006
Location: Tulsa, OK
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Price for Reg Unled yesterday was 2.71 and Diesel was 3.18, wonder how that can be justified. Rip-off!




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  #69  
Old 08-19-2006, 08:06 PM
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Smile

For some strange and glad to see reason, both gas and diesel are coming down some here in my area of POrtsmouth, Va. I paid $2.69 for unleaded gas this morning in my wifes van. This was at BJ's Wholesale club no less..Everybody else around is coming down but not that low yet, most stations are upper 2.75 +, diesel up the street from where I work is $2.79 a gallon...Average diesel prices in the area are 2.89 per gallon...
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  #70  
Old 08-19-2006, 08:53 PM
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Quote:
Originally Posted by xafman View Post
Price for Reg Unled yesterday was 2.71 and Diesel was 3.18, wonder how that can be justified. Rip-off!




xafman
84 300 DT 182,000 miles
because people will pay for fuel...they need it.
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  #71  
Old 08-19-2006, 09:49 PM
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Paid $2.09/gallon for premium 91 octane... this was after an 80 cent/gallon discount I got from a grocery store. Full tank was $43.

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