Gas prices -- interesting

[lawgator1]

The is a very interesting article about local gas prices. Are you guys still having trouble up there with supply?

Gas price drops below $3 at some Orlando-area stations -- OrlandoSentinel.com

A couple of the interesting points I got from this article:

1) Based on the rough formula the one fellow gives for the amount that a gallon costs or whole sale price + .60 + .60 for taxes, it would seem that the profit on a gallon is 60 cents, which means that every time I fill up on an empty tank the station makes roughly $12. And they say that their profit is in the $3 bag of pretzels? I don't think so.

2) The effects of the falling wholesale price and falling demand and other economic questions out there has led to some wild divergence in prices. The other day, I saw stations acorss the street from each other and one was .14 higher per gallon than the other.

And I'm paying about $3.40 now where I live, which is roughly 25 miles from where this $2.99 a gallon spot is. Saw a tv story about one that was $2.88 locally and had a line.

3) The per barrel price of oil is apparently still sliding as of this a.m. Wonder if we will get into the $2.50 range (not that its great but its better than $4).

 

[tim]

What really gets my goat is the fact that it shoots up rapidly when a mouse farts in an off shore drilling rig and when the oil prices slide to 85 or so I see very slowwwwwwww drop in prices at the pump.

 

[BigPapaVol]

1) Based on the rough formula the one fellow gives for the amount that a gallon costs or whole sale price + .60 + .60 for taxes, it would seem that the profit on a gallon is 60 cents, which means that every time I fill up on an empty tank the station makes roughly $12. And they say that their profit is in the $3 bag of pretzels? I don't think so.

You need to disregard this kind of stupidity. The C-store world is going broke because they make no margin on gas. Total profit through the system, including the oil company, the distributor, and the retailer, might be .60. The bottom line is that the C-store has to sell cokes and cigs to survive, otherwise, they're done.

 

[volinbham]

I'm waiting for the OPEC announcement to cut production -- I'm guessing they'd like to be back around $100.

I wouldn't be surprised if gas gets close to $2.50. We're in the seasonal drop period.

 

[BigPapaVol]

I'm waiting for the OPEC announcement to cut production -- I'm guessing they'd like to be back around $100.

I wouldn't be surprised if gas gets close to $2.50. We're in the seasonal drop period.

They've had emergency meetings out the wazoo.

They're going to have a real hard time reversing the dollar's climb, which is hammering them badly. They're also going to have a hard time keeping Russia from producing as much as possible, given their oil centered economy.

On the price, I bet it gets to $2 before it gets back to $3.

 

[droski]

crack spreads are negative meaning that hte refiners are losing money because the supply of gasoline is way too high. you aren't getting screwed. enjoy it while you can.

 

[T-TownVol]

Then the week of Thanksgiving it will go right back up.

 

[VOLatile]

I haven't paid over $3/gallon in a week.

 

[superdave1984]

It's getting close to $3 here.
On a more important note, what happened to LG's avatar??? Now I actually read his posts.