Guest Z-rific Posted November 11, 2004 Share Posted November 11, 2004 Anybody notice how when the price of oil per barrel goes up, it takes about 2-3 days to hit at the pump. Then when the price of oil goes down, it takes weeks for the price at the pump do go down? Or how American oil companies are taking in record profits, yet put the full blame of high prices on Opec? Certainly OPEC is screwing us. Certainly big oil companies are screwing us. And no political party is going to do a thing about it. I understand capitalism and free market blah blah. But screwing your own countrymen on top of foreign companies...somehow seems very un-American. Quote Link to comment Share on other sites More sharing options...
materchan Posted November 11, 2004 Share Posted November 11, 2004 vote cheney 2008 (sarcasm) if he's not dead yet Quote Link to comment Share on other sites More sharing options...
VRJoe Posted November 11, 2004 Share Posted November 11, 2004 I'm not about to defend the oil companies, but the price at the pump doesn't drop until the cheaper oil is processed and sent to the pump. You're paying for the gas already made from the higher priced oil until the cheaper stuff gets on line. That's the main reason the price lags. It's an accounting principle called FIFO (First In, First Out). On a side note, how can we push for hydrogen, keep the oil for lubricants and run our engines on hydrogen. - Joe Quote Link to comment Share on other sites More sharing options...
Guest Z-rific Posted November 11, 2004 Share Posted November 11, 2004 My point is, if it only takes 2 days for prices to rise, and weeks to go down, something is wrong. It should take equal time both ways. I beleive the economic term for that is "screwing the people". Quote Link to comment Share on other sites More sharing options...
z-REX Posted November 11, 2004 Share Posted November 11, 2004 the stations have already paid for the truckload they have stockpiled. the lower prices won't reflect right away because, simply, you're not going to sell expensive product cheaper as a public service. take my company, for example... why does red lobster not do all- you- can eat shrimp year round? a. limited time= increased interest and b. when you get it cheaper, you sell it cheaper. you sell cheap what you buy cheap. companies that don't understand this don't last long... and gas stations are no exception. just simple economic theory... sure you can get more people in the door... but if you do it at the expense of maximizing profits, all you do is exponentially increase your losses. Quote Link to comment Share on other sites More sharing options...
SportZ2 Posted November 11, 2004 Share Posted November 11, 2004 I think you should blame the individual gas station owners. Gas in my area ranges from $1.73 to $1.95 per gallon. These stations aren't far from each other and I still see people filling up at the higher price stations. Any body who isn't willing to take the extra couple of minutes to go to the station with the better price deserves to get screwed. I know of two stations across from each other and there prices differ by about .05 to .08 cents and people are still filling up at the higher price. This shows that individual owners can set any price they want as long as people are willing to pay for it. Quote Link to comment Share on other sites More sharing options...
Guest Z-rific Posted November 11, 2004 Share Posted November 11, 2004 You're still missing my point. Of course, gas they pay more for, they must charge more for. So there will be a time period where oil per barrel drops and prices at the pump stay high. But this should be the same time period as when prices per barrel raise, yet prices at the pump stay down. If it takes 2 weeks for my gas station to lower their prices due to drops in global pricing, it should take 2 weeks to raise them as well. Oil prices go up, we pay more at the pump mere days later. Oil prices go down, it takes weeks to see even the slightest drop at the pump. Quote Link to comment Share on other sites More sharing options...
SportZ2 Posted November 11, 2004 Share Posted November 11, 2004 My point is that when the price for a barrel of oil comes down some stations are quicker to respond. I think it depends on the individual owner. Places like Sam's Club don't change there prices for a week or two after all the other gas stations raised there prices. And they are also pretty quick to come down as well. I won't chase gas for .02 or .03 cents, but I will for .12 to .18 cents. Quote Link to comment Share on other sites More sharing options...
VRJoe Posted November 11, 2004 Share Posted November 11, 2004 One of the reasons for difference in prices between stations is the deal they have with the oil company. I had a local Getty station close because Getty kept raising his price until he could not be competitive with the Getty station down the street. The oil companies have tried to kill the independent dealers, they want to own the station and rent it to somebody who'll sell the gas (hence the increase in mini-mart stations, no mechanic). There are a lot of reasons for price variance, but the local guy is the least likely to screw you, he wants to keep your business, the more he sells, the better his price. The price changes make them as crazy as it does us, just ask them sometime. - Joe Quote Link to comment Share on other sites More sharing options...
SportZ2 Posted November 11, 2004 Share Posted November 11, 2004 I can understand that, but some of the stations I'm talking about are the same company, P-66 to be exact and the prices were off from any where from .05 to .12 cents. This makes me believe that it depends on the area and how much a station thinks it can get. There are three sections of the car industry that I can't figure out. Gas pricing, salvage yard pricing and windsheild replacement. All are scams one way or another. Quote Link to comment Share on other sites More sharing options...
datsunlover Posted November 11, 2004 Share Posted November 11, 2004 Having worked at a gas station, I have a little understanding of how this works.. but it still burns me that the price goes up so fast, but drops so slow (if at all!) Really, it doesn't make sence sometimes.. A place will have full tanks, costing them $x and sell it for $X. Ok, they paid for it, and they'll sell it and make a bit... BUT; then the price will go up a few days later... NO MORE FUEL HAS BEEN DELIVERED!! (I have seen this happen) So now they are selling the SAME FUEL they paid $x for, at $XX!! Profit on top of profit. Quote Link to comment Share on other sites More sharing options...
BrandonsZ Posted November 11, 2004 Share Posted November 11, 2004 Sadly, if you really calculate it all out, it takes more raw energy to run a car on Hydrogen than gasoline. Another sad point is it takes more than a gallon of gasoline energy to distill a gallon of Alcohol. Not to mention a gallon of Alcohol is 70% the energy of a gallon of gas. The last sad point is after you think about all the transmission line loss, the power line loss and the efficency of a (purely) electric car like the EV1, you actually use more energy per mile. Although since it's subsidized you might not notice it on your electric bill (not sure). But if everyone did it, we'd have one heck of an energy crises, but gasoline might be a little cheaper at that point, well probably not since they'd have to build more power plants and use that gas to make the energy. The only way to solve this problem is not to buy gasoline, and the only way not to buy gasoline is to not drive and the only way to not drive is move closer to work, combine your errands, and ummm... CARPOOL . Well maybe not that. You thinkt he energy crisis is over? It's just started, wait till china starts needing gasoline for 10X more people than the U.S.?? Quote Link to comment Share on other sites More sharing options...
80LS1T Posted November 11, 2004 Share Posted November 11, 2004 If you ever look at how much of what you pay is tax and how much is actual profit you would be very surprized. Gas stations wouldnt stayin business if you didnt buy stuff from inside the "store". Ask any gas station owner this. Here's the way I look at it....you have to buy gas so there not much you can do but filler up! Yeah I drive a truck that gets 19mpg so I know about filling up! Since I live 40miles from work and drive about 350miles per week....... so thats about $37.76/week (@ $2.05 a gallon) in gas! I think OPEC is the one thats got us by the balls! Guy Quote Link to comment Share on other sites More sharing options...
DaleMX Posted November 12, 2004 Share Posted November 12, 2004 It's simple supply and demand. They will charge whatever the public is willing to pay, and in their business they have you by the ba!!s. I have seen the price of gas change .25 in a day around here. We have 1 station that will kill the price quicker than the others and it seems that the more expensive stations are just as busy as ever. People are mostly idiots. Quote Link to comment Share on other sites More sharing options...
Forrest Posted November 12, 2004 Share Posted November 12, 2004 1) There is nothing wrong with profit. Without profit there would be no one selling you gas, or anything else for that matter. 2) These guys are selling as cheap as they can to beat out the competition. They are making pennies on the gallon. As previously stated it's simple economic theory. 3) I hear a lot of smack talking about OPEC. I don't understand how they could have us by the balls when we get less than 25% of our oil from OPEC countries. We could get less from them if we had less restrictions on domestic drilling. http://www.eia.doe.gov/emeu/cabs/usa.html Quote Link to comment Share on other sites More sharing options...
Guest Aaron Posted November 12, 2004 Share Posted November 12, 2004 I also remember (at least in 90 when we were leading up to Desert Storm)that we export more oil from Alaska to Japan than we import from OPEC nations. That drives me nuts. (I need the little guy here that is hitting himself in the head with a hammer.) Quote Link to comment Share on other sites More sharing options...
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