Oil prices down substantially; gas price in your area?

#26
#26
Does anyone else find these hateful attacks on an industry (gas stations) that are disproportionately owned by Indian immigrants to be appalling?

Given their location in heavily Hispanic states the oil industry is one of the largest employers of Hispanic Americans also.

So I just have to ask is this coincidental or intentional?
 
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#29
#29
lawgator1 said:
If it were ever proven that the gas wholesale or retail giants worked together to fix prices the anti trust lawsuit cost to them would be in the tens of trillions.
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it gets continually investigated but collusion is never found. one might conclude then that it isn't the result of collusion. but, no - it has to be collusion
 
#34
#34
volinbham said:
it gets continually investigated but collusion is never found. one might conclude then that it isn't the result of collusion. but, no - it has to be collusion
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I'm not asserting that there is any sort of formal agreement, that's for others to decide. I think what irks me the most is that when prices go up substantially overnight they say its because oil price went up precipitously the day before. But then when the price of oil drops, then price drops don't seem to be nearly as quick as going up.
 
#36
#36
lawgator1 said:
I'm not asserting that there is any sort of formal agreement, that's for others to decide. I think what irks me the most is that when prices go up substantially overnight they say its because oil price went up precipitously the day before. But then when the price of oil drops, then price drops don't seem to be nearly as quick as going up.
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So you think that the oil paid for at the old price should work its way through the system at the price that it was paid for 30 days ago?
 
#37
#37
VolStrom said:
So you think that the oil paid for at the old price should work its way through the system at the price that it was paid for 30 days ago?
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I don't profess to know how they price it. But for sure when the gas price goes up Tuesday, they blame it on oil prices having gone up on Monday.

When oil goes down Wednesday, its about 3 weeks before gas prices slowly ebb lower.
 
#38
#38
lawgator1 said:
I'm not asserting that there is any sort of formal agreement, that's for others to decide. I think what irks me the most is that when prices go up substantially overnight they say its because oil price went up precipitously the day before. But then when the price of oil drops, then price drops don't seem to be nearly as quick as going up.
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If it's an independent branded store they get a daily from the distributor and raise prices immediately when it's going up so they can buy the next load of fuel. Then since they paid $x per gallon for that load they don't immediately drop the price at the pump until they are due for the next load. It's not a conspiracy.

Most independent gas stations or jobbers don't even set their own fuel prices, tanks, pumps and all fueling equipment are owned by their distributor. The distributor sets the price and the store owner gets a few pennies per on the sell.
 
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#39
#39
hog88 said:
If it's an independent branded store they get a daily from the distributor and raise prices immediately when it's going up so they can buy the next load of fuel. Then since they paid $x per gallon for that load they don't immediately drop the price at the pump until they are due for the next load. It's not a conspiracy.

Most independent gas stations or jobbers don't even set their own fuel prices, tanks, pumps and all fueling equipment are owned by their distributor. The distributor sets the price and the store owner gets a few pennies per on the sell.
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That still doesn't answer the point.

Idf the reason they have to spike gas prices along with oil prices so as to afford the next shipment, then when the price of oil drops they should need less to buy the next shipment. I can see SOME delay based on what you say, but not weeks.
 
#40
#40
lawgator1 said:
I don't profess to know how they price it. But for sure when the gas price goes up Tuesday, they blame it on oil prices having gone up on Monday.

When oil goes down Wednesday, its about 3 weeks before gas prices slowly ebb lower.
Click to expand...

It’s not really a mystery. The reseller is trying to maximize his profit. The key to that is passing through higher costs as quick as he can and holding on to price in a declining market as long as he can. Several years back i shared some info on how managing to a margin rate - not margin dollars - was a piece of the rationale in commodity pricing.

Some people are lucky enough to live around a station who likes to be aggressive on price and drives down margin for everyone - because once one station moves down, the others must usually follow to hold onto sales.

This isn’t a mystery though. Your perception is reality.
 
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#41
#41
lawgator1 said:
That still doesn't answer the point.

Idf the reason they have to spike gas prices along with oil prices so as to afford the next shipment, then when the price of oil drops they should need less to buy the next shipment. I can see SOME delay based on what you say, but not weeks.
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How long do you think it takes for the drop to filter down from E/P to refinery to distributor to store?
 
#42
#42
DC_Vol said:
It’s not really a mystery. The reseller is trying to maximize his profit. The key to that is passing through higher costs as quick as he can and holding on to price in a declining market as long as he can. Several years back i shared some info on how managing to a margin rate - not margin dollars - was a piece of the rationale in commodity pricing.

Some people are lucky enough to live around a station who likes to be aggressive on price and drives down margin for everyone - because once one station moves down, the others must usually follow to hold onto sales.

This isn’t a mystery though. Your perception is reality.
Click to expand...


If its market, its market. But if there is an agreement, spoken or un, to leave prices inflated I sure have an issue with that.
 
#46
#46
DC_Vol said:
Personally, I’m more upset so many restaurants haven’t readjusted their prices for chicken wings. The great chicken wing shortage ended months ago.
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They'd probably tell you now that they left prices high to pay for the waitresses, and that may well be true.
 
#48
#48
hog88 said:
If it's an independent branded store they get a daily from the distributor and raise prices immediately when it's going up so they can buy the next load of fuel. Then since they paid $x per gallon for that load they don't immediately drop the price at the pump until they are due for the next load. It's not a conspiracy.

Most independent gas stations or jobbers don't even set their own fuel prices, tanks, pumps and all fueling equipment are owned by their distributor. The distributor sets the price and the store owner gets a few pennies per on the sell.
Click to expand...
It’s like when I have catalyst in my warehouse made with palladium that cost me $2500 a Troy ounce but now the Pd spot price is down to $1480…
 
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#49
#49
lawgator1 said:
If it were ever proven that the gas wholesale or retail giants worked together to fix prices the anti trust lawsuit cost to them would be in the tens of trillions.
Click to expand...

Not with their buddies in Congress looking out for them. Our votes only get us what the rich pigs sell us.
 
#50
#50
lawgator1 said:
They'd probably tell you now that they left prices high to pay for the waitresses, and that may well be true.
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The local gas station would probably tell you the story. And they aren’t paying daytime, server wages.
 
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