That's it, I'm walking. gas up 33 cents since Monday, - Page 3

You mean besides the obvious?

"Does anyone else see this as a scam?"

Always did.Despite any economy mumbo dumbo,I never thought there was any other reason other than greed.Using the "current situation going on in the world" as a reason to hike up prices.

I'm convinced that some of what we are seeing is stations taking advantage of the run-up in oil to even further increase gasoline prices beyond what is warranted by the price of oil.

This morning nearly every station was $2.49 - $2.55. This afternoon, they were all at $2.69. It's no coincindence that the price we're paying is going through the roof while oil company profits are skyrocketing.

Like was said before, what can you do? Not much. I drive 175 miles to work and back during the week. I can't cut that out. I might have typically driven another 30-60 miles on the weekend, but now I think twice before driving anywhere on the weekend.

I'm sure most of us are lucky in the fact that we can absorb this added expense relatively painlessly (although that doesn't mean we like it). It's the people who were barely getting by before, that these price-hikes are really hurting.

Interestingly, you often hear people say that adjusted for inflation, gasonline was at about $3.00 per gallon in 1981 -- a record. However, the US Department of Energy seems to disagree:

As someone mentioned, in a futures market he's probably setting prices based on what he expects to have to pay to refill the tank next week, not what the shipment cost last week.


Most gas stations are franchised, so don't put all the blame at the feet of the people that work at/manage the stations. My family leases a Sunoco franchise with mini-mart. Sunoco calls us whenever they want us to change the gas prices; we have no say in prices whatsoever even though we manage the station and collect the money. And the Sunoco people are very seldom ever at the station to deal with the BS from customers over the gas prices.

We only make a 5 cent commission per gallon regardless of whether the cost is $1.50/gal. or $2.50/gal.

Mexico has a nationalized distribution network, so the price is supposedly the same across the country. Right now:

$2.26 / gallon for 87 octane (6.34 pesos/liter)
$2.67 / gallon for 93 octane (7.5 pesos/liter)

thats for full service. Cost about $20 USD to fill up our Tsuru.

Julian,

I am agreeing with what you are saying but it relates to Supply and Demand.

I am just saying that it COULD be a hoax and therefore the prices should not be that high.

BUT, since people still pay these inflated prices and don't take any action the price will not fall. This means that even if there is no trouble with the supply of oil the price will remain high.

To make matters I think the problem lies with the amount of refineries and not so much as the supply of oil. I think that demand in the US has risen. But the number of refineries in the states has not risen. This means that the older refineries have been worked harder and if there is a problem it COULD mean a shortage, because the other refineries are already pumping at full capacity and can not take the load from the refinery being worked on.

***********To condense what is said below I will do so here in between the stars......The price of gasoline is allowed to rise as it has for one reason: We allow it. If you would like my version of why this happens read the rest of my post. *********************************

As to the talk of Futures, this way of pricing IS ILLEGAL (at least it was in Canada) and has been looked into many times in Canada. However, they have ruled (2 or 3 times actually) that nothing was being wrongfully done.

Then again how much taxes does gasoline bring in? I think we know who is bending over for whom..............

But since the prices still fluctuate when the market is closed; on weekends I believe. It could be that they are trying to sell higher priced gas at busy times during the day and sell at lower prices at slower times in the day. This is what I have seen here in Toronto.

To simplify what MAY be happening now.......
Previously the price of oil was low because the demand was not as high as it is now. Since their is more consumers in the U.S. the demand for oil is higher, which means higher prices. As no more refineries are being built the chance of a shortage occurs*.
"China enters the market" I must be blind or something but hasn't China been in the market longer than 2 years? Anyways, the demand for oil in China puts further pressure on the supply which raises the price in the world market. As NO new SIGNIFICANT sources of new oil can be found the supply is given more pressre**.

*Still notice how there is no REAL shortage of oil in America? And I don't mean that the local gas station is out of gas 'till tomorrow.
**Actually, as mentioned before it is more of a problem of refineries than Oil sources. But still that is a problem that needs to be resolved (but not as important).

Phew.....I hope no one got lost.
For those that don't know.....Refineries are what process oil into the Oil products that we use of which I believe nearly half is Gasoline and such. If somebody has a diagram of how much oil in a barrel goes to what that would be helpful.

For those lost in what I just said lets just say that an entire barrel of oil is not used for gasoline and such because it can not be.......not because they don't want to. There is a scientific reason (or chemical reason) but I can't remember that at this moment.

But I don't think people realize this.

The price is set regionally, I believe. Right?

Yeah, while I don't like it, the $250 gas bill each month is worth it to me because I'd have to take at least a $1,000/month pay cut if I worked closer to home. And if I moved closer to work, my mortgage would double.

What I will never understand is how in my home town, every freaking gas station has exactly the same price nearly 100% of the time.

What other industry can have 50+ stores in a town with prices the same to 1/10th of a cent?

(Oh, and it is $1.05.9 CDN per Litre here)

Its called collusion. This is also illegal (no, really it is ) but they (the government) don't do anything, or maybe they can't prove it.

However, in some situations deals are worked out and gas may be cheaper at one store one week and at another store another week but, really it is coincidental.

If you live in a small town (where there is two gas stations) the owners may meet and actually set the price together.........not that there is anything wrong with that either.

Well, that's a good thing to know. Seriously. If I'm not being reamed by Mister Filling Station Owner, then I won't have that nasty look on my face the next time I amble up to the window and snarl, "Twenty bucks on pump three, dammit."

And, I just realized that my home is HEATED WITH OIL. That's what that big freaking tank is out in my back yard. HEATING OIL. I'm going to get screwed this winter, too!

I better start buying "long johns" now while they're cheap in the summer.

MC

Yeah, the region being the area from your station to the next station up and down the road from you. See below.





It's called the truth. If Sunoco changes our price, it's generally to match the price of the next station up the road. And if they decide to move the price first, it's with the expectation that the station up the road will soon follow. If they don't match the change, our price goes back down to match them. The companies may not meet to officially discuss prices, but they all have spotters that drive around and check prices at the competition.



It's painful for the customers, but its really the small, independent owner/operators that are getting killed right now. We have one station up the road that's not affiliated with a major oil company. They have to pay cash for their gas every time their tank is filled and this past Saturday, their price was 10 cents/gal. higher than ours. Sunoco fills our tanks, but all we have to do is sell the gas, collect the money, and deposit it to their account less our commission.

Rumor has it the independent guy is justaboutthisclose to going out of business and they've bagged (i.e. closed) their pumps several times during the past month because they can't afford to buy gas to refill their tanks.

So while it's popular to blame the owners, many of the smaller ones may end up out of business before this insanity is over, which will only increase the monopoly of the few major oil companies over retail gas sales.

It is insane that the price of gas varies so much throughout the country, but unlike most other countries, besides any federal taxes, each state can tax it at it's own rate. Here in New York State we pay about 40 cents in taxes for each gallon. Some of the other states only tax it a few cents. Add in the fact that some states, like California, mandate a certain gasoline mixture which is usally more expensive to produce, it's just crazy.

Here's the deal in Florida vs. Georgia. But then again we don't have State tax in Florida.

http://www.jacksonville.com/tu-onlin...19512368.shtml

Well, about a year ago I think I was paying about $0.75/litre on average, so it's up a quarter or so in a year. Means that to fill the car is about seven bucks more, or about $400 per year. Not much I can do about it though, since there's no way to get transit to work. Only consolation will be if it forces more people who can use transit off the roads (making my drive a little better).

Maybe now we'll start seing some real progress on hybrid sales and other alternative fuels.

Well, you've taught me something. I won't blame the owners anymore. I guess it was a way for me to blame someone I could see. But I also guess that's exactly what Big Oil wants me to do. I won't be a tool anymore. I blame Big Oil.


Here's to hope. Who can we pester?

MC

goddam you, joe rogan!!!!!

kevin t

I read about that on the Toronto Star website, i.e. prices are raised in the morning as drivers head out for their morning commute (filling their tank would be done out of necessity, at least according to station owners) and prices are dropped during the evening, when drivers have the opportunity to shop around for lower gas prices. (Food for thought when I'm up north later this year)

BTW, it's $2.65/gallon for 87 grade around here.

Gas prices in Omaha range probably $.25 and its another $.10 - $.15 cheaper if you go right accross the river to Iowa due to the tax differnce. Out where I live, I'm paying $2.59. That seems like a lot for a not-huge midwest city.

No kidding.. it's the best way to stick it to the oil barons.

And why does the president always push for the US to become "less dependant on foreign oil"... what's wrong with becoming less dependant on oil... period!?!?

All that tanning oil he uses is probably responsible for 10-15% of the price hike alone

In Ottawa Canada we are now over $1.00/Litre for 87 grade regular gas. (I've seen it at $1.06/Litre)

That would end up being about $4.00/Gallon in the U.S.

$2.59/Gallon... I wish.

yep, here in ontario it was 1.02/L yesterday morning. it's back down to .96 now though, good for me though, the higher it gets, the easier my parents will cave and buy a nice new fuel efficient civic!

Almost $30 to fill my Prius this morning. Oh well, at least I'm good for another 600 miles.

Rob

Well, in Australia we are just over $1.15/Litre for unleaded gas - looks like a hike above $1.20 in coming days.

Correct me if I'm wrong but wouldn't that translate to $1.06/Litre in Canada ($1.15 multiply $0.922 CAD conversion rate). Or $3.35/Gallon in the U.S. ($1.15 multiply 3.785 litres to the gallon, multiply $0.7695 USD conversion rate).

> In Ottawa Canada we are now over $1.00/Litre for 87 grade regular gas. (I've seen it at $1.06/Litre)

Is that $1 Canadian? That's 83 cents US, or $3.13 US per gallon. More, but not dramatically more.

Um....have you run the figures? A Prius gets about 48MPG combined city and highway. Compare that with many other models that get 20-25, and you have a significant increase in efficiency.

I havent read the rest of the thread yet but I always hate hearing the argument that if you adjust for inflation, 1980 was the highest price paid for gas. But you know what? I was 4 years old in 1980. I didn't purchase gas back then, I purchase it now, and my wages sure havent been adjusted for that time frame of inflation either.

www.gasbuddy.com for realtime price checks of gas.

I recommend anyone that passes a Flying J regularly to sign up for their free gas rewards program. You get a 1 penny per gallon discount. Not much, but it will add up over time.

Wow, the job you worked hasn't raised wages since the 80's? I would look for another job.

All the Wal-Mart family of businesses (Wally World, Sams, Neighborhood Market - at least in my area) give you a 3 cent discount per gallon for using their gift card to pay for your gas.

You're right, those pennies add up... to just over $31 a year in savings, assuming you bought 20 gallons per week, every week with the Wal-Mart discount.