Gas Prices?

[sparrow]

Good Morning All:

Here is a question from the "random post" department. Does anyone here know how gas prices work? I understand that prices are set on futures and are not set in stone. What I don't understand is how that applies to the gas already in the pumps at the station. for instance, I pump gas into my car at 8:30pm at 2.25 a gallon. The next morning I drive by that same station, and gas is $2.35 a gallon. Isn't the gas that is actually in the pumps at the 7/11 or Exxon station already paid for? The price should be known then and should remain stable until a new batch of oil was refined and brought in, shouldn't it? If anyone out there is in the oil business or owns a convenience mart and can answer this, I would appreciate it. I feel assaulted every time I get fuel.

Thanks! Sparrow

___________________
www.scifichics.com

 

[materialsgirl]

Supply and demand, my friend. When the gas station knows that supply is going to be affected, they raise the price on the gas they already have because they know the next batch they will have to purchase will be more $$$$. Like you said, the prices are based on the predictions for future oil supply and prices. The gas station needs enough money to buy that next tanker-truck-full of fuel.

Of course, gas stations have other tricks up their sleeves too - they know that people tend to do a lot of driving on weekends and big holidays, so they raise their prices then. Again, it's supply and demand - high demand = higher price.

 

[sparrow]

Emily, if you had started your reply to me with DUH! I wouldn't have blamed you Makes total and simple sense now that I see it written down. Now I can sleep nights, lol!

Thanks! Sparrow


__________________
www.scifichics.com

 

[allwildgirl]

It's so annoying. There is no other business where they would get away with charging you three different prices for the same item in the SAME FREAKING DAY.x(

 

[midnight]

Also, here in MA, there are a zillion taxes tacked on to elevate the price. I think there are also political issues on the supply side no matter what the demand is.

--Lois


"If I have the belief that I can do it, I shall surely acquire the capacity to do it even if I may not have it at the beginning" - Mahatma Ghandi

 

[Fitnessfreak366]

I'm sure I'm not alone when I say WILL THIS EVER END? Its so expensive to own and drive a car anymore, I'm wondering if its worth it? I'm telling you, I'm ready to start riding my ten speed to work. They are making it so we can't afford vacations, weekend getaways, clothes, hell, I'm having a hard time coming up with grocery money. I wish there was something we could do to stop these insane prices.
Debbie in OH

 

[sparrow]

Debbie I agree!! My folks were in Holland not long ago and commented on how everyone walked or rode bikes to work, grocery, errands etc. Sadly we are not set up that way here, not only with the roads but with the rat race. How can I ride to work and arrive stinky and gross on the other end, with no shower?

anyone have a hybrid car?

Sparrow

_________________
www.scifichics.com

 

[nice on ice]

Don't waste your money on a hybrid car right now. In order to recoup the extra cost of buying one over the "regular" version of the same car, you'd have to drive it for about 16 years on average. Nobody keeps a car that long. They really provide no benefit at all in the end. Hopefully, someday they will.

 

[Kit_]

Gas at gas stations is paid for the minute that big truck drives up and dumps it off. My father runs 5 of them. But to be in the market, just because you paid X amount for the gas, if joe blow down the street raises his gas, and then another station raises their gas. You got to raise your gas, that goes for lowering it too, you got to play follow the leader or you'll cut your own throat in the gas world. Trust me, these guys are back stabing and very vicious. Also another thing you may not realize, gas stations the one you take your car and fill up at. Don't make very much on the gas. If you make a 5 cents per gallon you sold for the year. That's considered doing good for a gas station owner. Also why you no longer see many gas stations without convience stores, or some type of car service now a days, you can't survive on selling gas. A lot of times, they have to sell it at cost, becuase the oil refineries are charging too much and the market can't take another increase. But it is the oil refineries who set the price, you get a fax every morning saying gas is going to be X amount and you basically got to move your price up so when that next truck comes in, you can pay for your gas to sell the customer, or pay it out of pocket. Also at busy gas stations you can go threw a load of gas, in a day or two, so don't think that 10,000 gallon tank in the ground is going to last all month, it doesn't, not even the good stuff lasts that long. We have to have 3 of the station filled every other day, because they are so busy.

Also if your wondering when or how the price goes up, keep you eye on crude oil on the stock maket, if it goes up, your price will go up, if it goes down then you'll see your price go down in a week or two. That's our gas, or will be gas once we do to it, whatever it is, to make gas out of it.

Hope that helps,

Kit