i can't stand that oil prices took the biggest decrease they ever have in history recently, and the prices at the pump slowly went down 10 to 20 cents. oil has never dropped $15 a barrell in a week or two ever before.
now when oil goes up .25 a barrel, gas goes up 5 to 10 cents a gallon immediately. oil goes down $15 gas goes down .10 to .20 very slowly, and now they are going up slowly again in my area, back to $4 now.
Keep in mind that the prices the retailers pay is based on not what it cost them at the time but what it will cost them to refill/replace what they sell as prices are rising, thats why it goes up so fast. The reverse is true also, they really can't sell it on Wednesday for less than they paid for it on Monday without loosing money. The retailers really do make squat on the gas they sell, they make their money on coffee, donuts, milk, cigs, lottery tickets, etc, the gas is just a 'draw' to get people in to the pumps and a 'gee, while I'm here' kinda purchases. so yea, it is going to come down slower. I read a blurb on CNN about the gas suppliers trying to keep the price up, the suppliers are the middle men that buy from the refineries and sell to the retailers, they never touch the product, it's all on paper and storage tanks that contractors deliver. Those middle men have made a killing over the last 2 years that puts companies like Exxon and Shell to shame.
In our town prices are 3.65 at just about every station. Maybe one or two a cent or two cheaper. In the town 12 miles away it is .08 cheaper. In the town 30 miles away it is .22 cheaper. We have at least 3 distributors in our town. They also supply gas to the town 12 miles away which is .08 cheaper than us.
There is no explaining it, the local dealers could have had breakfast one morning at a chamber of commerce meeting and come to an agreement, illegal yes, it's fixing prices, tough to prove in court.
In our area the gas was $.15 cents cheaper in the allentown area 20 miles away, it made the papers and then magically one morning the prices down there matched the prices up here, our prices did not drop, they raised theirs.
I buy my gas in NJ, it's always $.25 cents cheaper than PA, state tax is higher here. Thats why I haul 5 blitz cans with me when I go down, saves me a $1.25 a can, better that $6.25 in my pocket than someone else's.
Oh, it's been in the papers here, too. People asking for an explanation of how prices can be .22 cheaper only 30 miles away. It seems like all the stations here in town watch Murphy's prices (Wal-Mart) and go with the same. So, there is no need for a breakfast meeting, you just go by what Wally does.
Where that breaks down is the first guy to say 'Hmmm, .02 cents cheaper' that can start a gas war
If they all stay with the same price there is some kind of 'gentleman's agreement' at work. By any other name, price fixing at it's finest and if they are all member of the chamber, local country club or whore house it's a done deal..
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.
Related Threads
?
?
?
?
?
Ask a question
Ask a question
Jeep Wrangler Forum
9M posts
468K members
Since 2005
A forum community dedicated to Jeep Wrangler owners and enthusiasts. Come join the discussion about reviews, performance, trail riding, gear, suspension, tires, classifieds, troubleshooting, maintenance, for all JL, JT, JK, TJ, YJ, and CJ models!