Gasoline stations

[GreenWannabe]

Unfortunately, there are so many variables besides the price of oil that affect gas prices. Refining capacity has been cut in the US to the point that there is basically no excess capacity. Any disruption to either production (oil platforms in the Gulf, other countries) or refining (25% of our refinining capacity is in the LA/TX Gulf region) causes shortages, and prices go up instantly. Even the threat of disruptions is enough to trigger price spikes. And it may take 6 weeks to get power back to the refineries in the Galveston area.

And where does gas in my part of Alabama come from? Yep, pipeline from Galveston!

 

[kenmac]

Went by sams club this am. $3.69 per gal.If they can sell it for $3.69 ,so can everyone else. I may just start buying at sams as they were good enough not to try gouge people like the others

 

[N80]

Unfortunately, there are so many variables besides the price of oil that affect gas prices. Refining capacity has been cut in the US to the point that there is basically no excess capacity. Any disruption to either production (oil platforms in the Gulf, other countries) or refining (25% of our refinining capacity is in the LA/TX Gulf region) causes shortages, and prices go up instantly.

That's what I'm talking about.

Here in SC and NC prices remained steady and a little increased from previous weeks for about 3-4 weeks as oil prices went down. Supply good, barrel prices down. Why didn't price go down at pump?

Per barrel prices are lower than 8 weeks ago but price is higher now? Why? We are told that gas station owners make little or nothing on gasoline sales, which is patently, obviously a lie, but if its true, who is taking the money home?

Then with the threat of Ike, speculation (futures market) drove prices of oil (per barrel) up just a tad. But gas prices at the pump jumped extraordinarily. Neither speculation nor supply account for this increase. So why did it go up so much?

News today: per barrel prices continue to fall and disruption of supply due to Ike considered minimal. So right now, no real supply issues and market prices on oil are down, down down. Local gas prices still hovering around the level during the LOCAL ,not market, panic. Why?

So yes, the factors are multiple and the process complicated....but currently all of them are favorable for lower prices at the pump and yet the pump price has soared? Why?

And here is another issue. You mention that refineries are at max production. And it seems that they stay that way. So if production is constant, supply is constant and R&D is non-existent (what improvements have been made to gasoline in the last 30 years?) then expenses don't go up when demand is higher.So why, oh why, do gas prices go UP when demand is high???? On virtually every other market prices go down with higher demand. Does anyone suggest that we buy fewer iPods so that the price will go down?

So once again, it does not compute. Whenever prices go up we are told that the process is complicated and the reasons are intangible. When they don't go down we hear the same thing even though all the intangibles that were used as justification for the high prices now justify lower prices.

I'm getting tired of being told that the process is too complicated for me, or any other average American, to understand and to just trust that everything is above board.....because its a dun dun daaa....a free market. It stinks to high heaven. But what's worse is that it is damaging this country. The few profit, the rest are asked to tighten their belts.

 

[dgl24087]

I read something over the wekend that stated the number of refineries had decreased from a high of 324 in the late 70's, maybe early 80's, to 134 now. No doubt this is the result of the oil company mergers (BP-Amoco, Texaco-Chevron, Exxon-Mobil), close down facilities to create an artificial lack of capacity. Enviromentalists also contribute, fighting successfully to block construction of new refineries. VA rejected a proposed refinery due to this.

 

[N80]

This was released on Earth Day 1971. Kind of ironic, huh? Regardless, we is our own worst enemy. And as the most powerful nation on earth I guess it makes sense that we are the only ones who can bring us down.

 

[kenmac]

Per barrel prices are lower than 8 weeks ago but price is higher now? Why? We are told that gas station owners make little or nothing on gasoline sales, which is patently, obviously a lie, but if its true, who is taking the money home?


I know a guy that rents a station. He says he only makes 7-10 cents per gal. The jobber( the one he has to buy gas from) makes the $$. He says his jobber the person that owns his station,pumps , storage tanks, etc, calls him & tells him what his price will be for the next load of gasoline

 

[N80]

I know a guy that rents a station. He says he only makes 7-10 cents per gal. The jobber( the one he has to buy gas from) makes the $$. He says his jobber the person that owns his station,pumps , storage tanks, etc, calls him & tells him what his price will be for the next load of gasoline

Ten cents a gallon on a product that requires no advertising, no R&D, no one to pump it and not even anyone to take you money or make change sounds like a pretty good profit to me.

I've heard owners say that they only get 1 cent per gallon and only make money on food sales. The coffee goes for about $20 a gallon.

 

[Bird]

I have no idea what it's like now, but 50 years ago when I worked with my dad in his service stations, our rent was 1 cent per gallon of the gas we bought. Our "profit" (if you could call it that) was 2 or 3 cents a gallon. Of course we were selling gas for 25-30 cents a gallon. And service stations actually provided service in those days. We pumped the gas, washed their windows, checked oil, checked tire pressures, etc. And we actually just figured on the gasoline sales to cover our overhead (utilities, supplies, insurance, etc.). The actual profit was from the sale of oil, tires, batteries, filters, grease jobs, wash jobs, and flat repair. We were not a convenience store as they all are now. We did have soft drink machines and sold a few candy bars, peanuts, and snack cracker. And while you could make a living with a service station, it wasn't all that profitable, and it was long hours; 16 hours a day, 7 days a week. I'm not sure it would have even provided a living if we hadn't also had an auto parts store (only one in town) and we were the bus station for both Continental Trailways and Greyhound.

 

[N80]

Bird, I think the words they use these days to describe what you are talking about are "value added". And I think that would go a long way toward making things better, even if it wouldn't affect gas prices.

In other words, if there are two gas stations with the same gas at virtually the same price with the same coffee, gum and soft drinks then there is really no choice in the matter other than location.

In 'the good old days' it was different. Take the same two gas stations above and to one of them add some meaningful goods and services. Maybe even full service so I don't have to get gas on my hands when I pump and windshield fluid on my tie when I clean my windows and asbestos on my shirt when I check my air pressure and I might be willing to pay a little more for gas, or at least understand why it is more at one place than the other.

Heck, they say this country could save gillions of dollars in gasoline if we all just kept our tires inflated. Just think if every time you bought gas the kid who pumped it checked your tires!

And yes, I know this is pie in the sky. Who is going to pay this kids social security, health insurance, union dues, blah blah blah. But heck, if we're going back to cash vs credit prices, gas rationing, lines at the pump, then why not go all the way back to Goober and Gomer pumping our gas, checking our oil and cleaning our windshields?

 

[Bird]

Just think if every time you bought gas the kid who pumped it checked your tires!

George, I'll never forget that I was doing that for everyone for awhile and then a fellow bawled me out for checking his tires. He was furious, said that messing with them might start them leaking. So I learned another lesson; ask the customer first.

Maybe even full service so I don't have to get gas on my hands

I understand some politicians claimed ladies not wanting to get gas on their hands was the main reason Oregon passed a state law prohibiting customers from pumping their own gas. Of course others claimed it was for safety reasons while still others claimed it was to provide employment for otherwise unemployable individuals. I tend to think it was the latter. I don't know whether Oregon still has that law or not, but in 1991, I forgot about it and stopped for gas in Oregon and started putting gas in my truck and an obviously mentally retarded young man came out and bawled me out for doing that. Probably the first time in his life that he got to feel superior to another human so I certainly wasn't going to deny him that opportunity, and didn't say anything. So he finished the job and stopped at least 5 gallons short of filling the tank. Of course, he didn't perform any other service; didn't clean windows or even ask about checking anything else.