Name your $/gallon (II)
#781
Registered User
If the price is going up $1 per gal for the next delivery, the pump price will jump $1 now so they cover the cost. The station has no extra cash waiting around in case the price rises. Selling the less expensive gas at a higher price covers the cost of the future delivery.
If the price is going down $1, the gas in the ground is still more expensive than what's coming. If the pump price went down now, they would be selling for less than what it cost. Most of the time, if all the stations in a particular area are paying less for future deliveries, the pump price will stay more or less the same until one sells all of the more expensive fuel then starts dropping prices. The others will follow to compete.
If the price is going down $1, the gas in the ground is still more expensive than what's coming. If the pump price went down now, they would be selling for less than what it cost. Most of the time, if all the stations in a particular area are paying less for future deliveries, the pump price will stay more or less the same until one sells all of the more expensive fuel then starts dropping prices. The others will follow to compete.
#782
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Join Date: Mar 2002
Location: Nanoose Bay B.C. Canada
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Cover the cost for the next delivery?.......... I smell bs, delivery cost remain the same to the stations you can,t tell me the fuel that's in the tanks at the station needs to increase as the price of a barrel go's up it was delivered at the lower cost!!!! just price gouging by the fuel company's not the stations their just the pone's for the fuel company's. I have worked both sides of the fence!!!!
#784
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Join Date: Mar 2002
Location: Nanoose Bay B.C. Canada
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Ya I now that one, I really don't mind paying the road tax on fuel if they even use it for that as well as all the extra taxes that they hang on it but what gets my goat is the huge tax incentives oil company's get on drilling, On top of the billions of dollars in profit. I have heard through friends in this oil industry that it cost them about a dollar a barrel in Yemen to load crude on a ship?
#785
Registered User
DieselBuilder, I think you missed the point.
If there's 10k gal in the tank and the station payed $2/gal for it that's $20k. If the next tank of 10k gal will cost $3/gal that's $30k. The station doesn't want to come up with an extra $10k so it ups the pump price $1 for what's in the ground to cover the future delivery.
If the next 10k after that is back to $2/gal, they can't immediately lower the pump price because what's in the ground cost $3/gal. They'd lose $1/gal.
If there's 10k gal in the tank and the station payed $2/gal for it that's $20k. If the next tank of 10k gal will cost $3/gal that's $30k. The station doesn't want to come up with an extra $10k so it ups the pump price $1 for what's in the ground to cover the future delivery.
If the next 10k after that is back to $2/gal, they can't immediately lower the pump price because what's in the ground cost $3/gal. They'd lose $1/gal.
#786
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Join Date: Mar 2002
Location: Nanoose Bay B.C. Canada
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I understand where you are coming from, what I now in this area the service stations are banded together by a central call in for pricing and believe me its gouging here their is no computation by independent or chain stores the price will drop in a couple of towns up and down from us but it stays high here and all the fuel comes from same downtown bulk plants and the service stations has no control over the pricing how do i now this i now the owners of two stations their pisddd because they can never count on a steady profit share on there fuel !!!
#791
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Well enjoy the cheep fuel, here the cheapest i can find is 4.68 @ gal and get this from what I have read diesel is in high demand and short supply and in the next few months diesel is going up to 6.01 @ gal don,t you just love how the oil company's can screw us, profits will never drop for the big boys
#792
Registered User
2.75 Bakersfield, CALIFORNIA
Not sure if the new $0.10 State Tax increase applies to diesel or not.
New tax increase went into effect 1/1/2015. Not positive on that date.
This tax increase is suppose to go toward reducing carbon emissions
Not sure if the new $0.10 State Tax increase applies to diesel or not.
New tax increase went into effect 1/1/2015. Not positive on that date.
This tax increase is suppose to go toward reducing carbon emissions
#795
Registered User
$3.25 in Palmer, AK.