True gas gouging

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  #1  
Old 10-03-08, 03:12 PM
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True gas gouging

I think it is time we ask the distributors why wholesale gas prices are over 50 cents below the price they were before the IKE spike, yet prices are still where they were before the IKE spike. Someone is making about 50 cents a gallon profit (we know the government is already making that profit, I am talking someone in the supply chain). Time to ask why gas prices have not been coming down with the large decrease in wholesale price (we all know they go up the day the wholesale price increases).

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  #2  
Old 10-03-08, 03:27 PM
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Well, I've gone from $4.10-4.17 down to $3.35. Lower than 3 months ago. I don't keep track too much, as I only use maybe 1 tank/vehicle (35 gal total) per month.

It's not all about the oil price/barrel. The value of the dollar over there prob makes more of a diff.

Don't blame the distributors so much. More blame should probably go to the speculators on Wall Street or sitting in front of their monitors.
 
  #3  
Old 10-03-08, 05:20 PM
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I read in the paper that the day before Ike hit, some of the regional [S.E.] gas chains made a run on their suppliers, filled up all their tanker trucks, parked them for the better part of a week and then supplied all the low or out of gas stores with the now newly raised price gas

The article said the gov't was looking into but I've not heard/read anything further.

Traditionally local gas prices have been 5-10 cents below the national average but we've been paying higher than average for the last month or so. Current prices are around $3.70 per gallon.
 
  #4  
Old 10-03-08, 05:55 PM
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True gas gouging

I just paid $3.16, which well below the summer highs of $4.29.

Part is due to the time of the year (no summer weekends to the lakes (100,000 people every Friday) and the lower oil prices. Fuel will start jumping on weelends again when hunting starts and when the snow falls for the snowmobilers and skiers. A lot of SUVs and trucks with trailers.

We typically see $0.10 to $0.15 jumps per gallon on after noon on Thursday in the summer when everyone starts to get their last tanl full in town where prices are cheaper. It usually comes down after 10:00 AM on Monday after everyone fills up tp go to work. Timing is important in addition to buying away from the freeways and in more affluent neighborhoods.

I have noticed more stations (private and brand names) closing. The cost to maintain an inventory is apparently too high for the profit pumping a gallon. A load is about $25,000 to $30,000 and a good sized station will need 4 to 10 loads to fill up the tanks. This dictates turning over more fuel faster rather than just sitting on 2 expensive tanks. If you want to sell fuel in a cyclical market, you must have the inventory capacity or you lose a customer base.

Dick
 
  #5  
Old 10-03-08, 07:53 PM
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If you guys are in areas that are down to the low 3s, you are doing good. Depending on the taxes in the state, it should be, based on the wholesale price (that is the current market price, nothing to do with speculators, nothing to do with the price of oil, it has all to do with what market contracts are selling for right now).

In the few days up to Ike, the wholesale price was down to about 2.70 (where I lived at the time, retail was about 3.35), in the day leading to Ike, the wholesale ONLY went to 2.85ish, but the price at the pump (where I lived) spiked to over 4. The wholesale price is now down to about 2.20 and the price at the pump is about 3.35. It is the people who are buying the gas for 2.20 that are making a killing right now, not the speculators, not the station owners, it is all the distributors.
 
  #6  
Old 10-04-08, 05:22 AM
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Not only are our prices high ($4+), we just don't have any. Gas lines, fights, inconsiderate people. Luckily diesel is available and not too high. Marksr, how about you? You aren't too far from us.
 
  #7  
Old 10-04-08, 05:30 AM
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Most of our stations have gas - some, regular only, many have opted not to refill their hi test tanks.

We went to mrytle beach a few weeks ago and while the gas prices there is tradionally higher than here, they were 20 cents cheaper .... but we did see several stores that had no gas.
 
  #8  
Old 10-04-08, 10:18 AM
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And it is difficult for me to understand a "shortage" in the Atlanta area, since they are sitting on top of Plantation Pipeline storage facility in Doraville. More gas storage than the mind can imagine if seen from the air. Sounds as if it is just another imaginative way to increase gas prices. Once we get used to $4, if it doesn't go down, we'll just say "ok" and accept it.
 
  #9  
Old 10-04-08, 01:23 PM
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Yup, our price has dropped to about $5.75/gal so we're doing great!!
I watched part of your vp debate and it appears your problems will be gone as soon as the election is over
PS: We are also having a federal election as I'm sure you are aware. Our Prime Ministers debate was on at the same time, did you flip back and forth like I did?
 
  #10  
Old 10-04-08, 03:57 PM
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the distrubitors might be makeing money but i know the gas stations mostly only about break even on fuel. after drive offs, repairs, electricity and insurance. most of their profits come from either repairs or convince store items. drive offs can kill them in a big hurry in some areas.

life begins when the kids leave home and the dog dies
 
  #11  
Old 10-04-08, 05:25 PM
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After katrina when gas hit $3, most of the gas stations around here - both tenn and virginia side, put little stickers on their pumps reminding everyone that besides going to jail, you could lose your license for driving off and not paying for the gas.

I think we are all aware of how little the stores make on gas. There have been several mom and pop stores put out of business around here because a chain store was built across/down the street and started selling gas for less than the mom and pop had to pay for it.

My own observation has been that oil companies figure out how to spike the price, knowing that when they bring it down a little we will be "happy" that it is no longer as high as it was.
 
  #12  
Old 10-04-08, 05:55 PM
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wish those stickers worked, i talked to a store owner a few weeks ago who had 4 drive offs in one day, she was very unhappy said most of the time it was not recovered even with cameras, due to stolen tags, unable to see tag that type of thing. unfortantly it affects all of us.

Murphy was an optimist
 
  #13  
Old 10-04-08, 08:39 PM
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True gas gouging

My daughter just saw gas at $2.99.

Unfortunately, she just filled up at $3.15.

Our state gas taxes are too low for the long term if you want good roads.
 
  #14  
Old 10-05-08, 08:21 AM
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Originally Posted by chandler View Post
Not only are our prices high ($4+), we just don't have any.

Oddly we are here way up north and our gas has plummeted in the last 5 days, by 28 cents, and we are at $3.39/gal. now. I'll TAKE it! (Considering we were at I think $4.19 a gallon not long ago!) Every 10 it goes down a gallon = $100 a year savings for me. That means if this keeps it up, I'll have $800 more $ to send to the IRS (you see I'm self employed, technically/no withholding).
 
  #15  
Old 10-05-08, 08:25 AM
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Originally Posted by Concretemasonry View Post
Our state gas taxes are too low for the long term if you want good roads.
It sort of amazes me how a car tire is filled with air, and when you hit a pot hole -rather than the car bouncing 10 feet in the air, it hits the pot hole with such a thud, you'd think there wasn't even rubber on the wheel, let alone having air inside it.
 
  #16  
Old 10-05-08, 08:30 AM
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I know here in florida, stations are required by law to make at least 4 cents per gallon over their cost on fuel. The catch is, prices are not based on what they paid for THIS load of fuel, they are based on the projected cost of the NEXT load. Fuel is a money loser for virtually every station that sells it. It's the soda, cigarettes and candy you buy when you go in to pay that lets them keep the doors open. Just the cost of inspecting the tanks (digging them up every 5 years) can wipe out a years 'profit' from fuel sales.

A large station near me has a cure for drive offs. They have an employee full time in the lot with a clipboard writing down tag #'s and descriptions of every car that pulls up to a pump.
Which do you think is costing them more? Drive offs, or a full time employee?
 
  #17  
Old 10-05-08, 01:54 PM
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Since they decided to hire the employee, they must have already figured it to be cost effective. Simple enough math for them to have done. Is this in Miami? I'm trying to think of what city down there might be so bad this way that they are doing this. Where I live, they are so trusting that they have things outside you can buy on the honor system, sometimes.
 
  #18  
Old 10-05-08, 02:16 PM
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High state gasoline taxes are no assurance of good roads. Washington state has one of the highest gas taxes in the country as I understand and our roads are not anything to be proud of.
 
  #19  
Old 10-05-08, 03:47 PM
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Ecman51, I know what you mean by the self employed stuff. Every dime is accounted for. Even bought a Honda Silverwing 600cc scooter to run around in to check up on crews or do estimates. Every time I fill it up (usually takes $12) I save $35 in the same number of miles on my diesel. I make a point to look up at the attendant, point to the pump register and laugh. No $140 for you today!!!!
Furd, IMO we here in Georgia have the best roads in the country, after having driven in New Jersey and Mazatlan, Mexico.
 
  #20  
Old 10-05-08, 04:37 PM
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Chandler...how can a 600cc engine be called a scooter? My first bike was a CB100, my SIL had a CB175 that she rode to KY from OH with my brother who was riding a 350.

Thats one monster scooter engine!
 
  #21  
Old 10-06-08, 03:43 AM
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Wholesale gas prices are down another 7 cents this morning to 2.15.
 
  #22  
Old 10-06-08, 06:36 PM
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GG, it has a floorboard that sweeps up in front, and you step through the thing to mount it rather than throwing your bad knee up and over. Wide tires, but smaller in diameter. Constant velocity transmission, so no gear changing. ABS brakes (scary the first time you have to use them). Moves my 60 year old body 0 to 60 in just a few seconds and has 120 on the clock (for someone else to prove). Plenty of power, in the mountains.
 
  #23  
Old 10-06-08, 07:43 PM
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Chandler...I still say thats a big-a$$ motor for a scooter. I remember (probably from hearing the stories for so long) my Mom throwing me on the back of my brothers Vespa back in
'63-'64 cause she had to deposit a check. I know it couldn't have been more than a 150-200cc.

I remember your post from another thread...hey, if it works..it works! But you know the old joke about scooters and...ahem...big lovely ladies, dont you?
 
  #24  
Old 10-06-08, 08:01 PM
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True gas gouging

Bought at $3.06 and saw $2.97 a mile or two down the road. They really drop after a week-end around here.

Dick
 
  #25  
Old 10-07-08, 12:58 AM
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My son left a Yamaha YX600 here(1986-7)-4000 mi.-looks new. ( he left the gas in carbs
for 2-3 years )
He took it to a hammer & saw artist to rebuild the carbs -the
guy destroyed them (broke off float posts, etc )--I really don't feel like spending $400 for
4 used carbs--if I am still around next spring I may take a crack at it.............
 
  #26  
Old 10-07-08, 03:30 AM
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Wholesale price down to less than 2.10 today, gas prices still 3.45 here in Green Bay. I can accept the pay for replacement gas concept (which is used when they raise prices immediately on a wholesale increase, but the apply it on the downswing as well).
 
  #27  
Old 10-07-08, 05:03 AM
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We're finally down to pre-Ike prices (the hurricane, not the President) with gas at just under $3.50. Minnesota's looking pretty good right now. Oh, wait; it snows there in the winter, right? Forget it. AIO
 
  #28  
Old 10-07-08, 05:35 AM
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True gas gouging

Those were normal week day prices. - On Thursday about noon they will jump up ($0.10/gallon or more) up as people begin to fuel up for the week-end trip to the lake cabins. It is a very noticeable temporary gouge. Down again late on Monday morning after people are at work and filled up.

It is a strange situation, but when you have 200,000 people with lake homes/cabins 150-250 miles away in an area of 2,500,000 people. They will use as much or more gas on a weekend as they do during the week. Winter makes little differenceif there is a good snow cover - skiing and snowmobiling. On good thing is that the boats and snowmobiles usually buy from pumps that have highway taxes on them so it is a bit of a grain since the boats and snowmobiles do not use the highways.
 
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