Being from Los Angeles area, I find it somewhat humorous when others outside CA complain about high gas prices. You know what we call $4/gallon gas in CA? Cheap. CA is usually $1 - $1.20 more than the national average (even before this latest spike)
What are you guys paying for gas?
- Thread starter Nick87
- Start date
WestKyHunt
Well-known member
$3.80 to $4.15 in Colorado Springs
Duck-Slayer
Well-known member
This was in Hermiston, OR last Saturday morning.
Matt
Matt
Irrelevant
Well-known member
4.68 Freddies this morning.
noharleyyet
Well-known member
Most places 4.99...a few at 4.69...diesel....91 octane is around 4.60
In Tejas? Must need a 20 gal hat now...
noharleyyet
Well-known member
You'll ride a black tornado
Across the western sky
Rope an old Blue Northern
And milk it 'til it's dry
npaden
Well-known member
Southern Elk
Well-known member
So, oil prices are down 30% from the highs a week or two ago. The prices here haven’t dropped at all. Why is it that the prices can be raised immediately, but never drop as fast or sometimes don’t seem to at all? @wllm1313 I need a lesson on how/why it works this way.
D
Deleted member 28227
Guest
The simplistic answer.
Gasoline is a commodity
Crude Oil is a commodity
Some types of crude oil are used to make gasoline so they are correlated, but it's not a direct correlation.
Further when people talk about oil they are quoting the spot price, usually WTI or Brent, when is different than the price a consumer pays at the pump.
For instance here is the equivalent WTI of Gasoline.
Then there is the whole economics of gas stations of which I'm not an expert... if I was to take a WAG, I would guess that your local station buys it's gas at some sort of whole sale price fills it's tank then charges you a mark up. They bought the whole tank at "$110" so they don't really change their prices till they sell the whole tank.
Conversely as they see the price of whole sale gas climbing, they mark up what's left in their tank so they aren't fronting as much money when they go to refill it...
Again could be totally wrong on that's just my thought, I imagine it extrapolates even to Exxon and other super majors.
Southern Elk
Well-known member
I understand what you are saying. Doesn’t it seem like they mark up the prices before the more expensive gas is in their tanks, but don’t lower it in the same manner?
Addicting
Well-known member
5.65 this morning for diesel at the truck stop. 100 gallons in the tank will get me till Monday. Everyone is going to be feeling the fuel surcharges on freight. Taco Bell will have to raise their price on gas to 3 dollars soon.
Hell taco bell is cheapest gas in western wyoming, $1.29 bean burrito.
D
Deleted member 28227
Guest
Did some goggling and found this…
Fuel Buying 101: Futures and Spot Markets - OPIS, A Dow Jones Company
Here is your basic guide to pricing gasoline and diesel in the United States starting with the first part of the price equation, the NYMEX futures market.
blog.opisnet.com
Part 3,4 and for Rack and Retail are what we are discussing.
noharleyyet
Well-known member
Been doing business with a small independent 'service' station owner for over 3 decades. Light mechanic stuff, flats, inspections (no snacks or junk)...etc. Honest dude who runs it solo, hard to find his skillset and dependability anymore. His fuel is .10-.20 cents higher than the brand fuel burrito/soda pop stores. He told me that during last week his wholesaler forecast his price at .10 cents per day increase increments.
The historically cheaper joints here are 4.49 today...Murphy USA and ALON....so it's sliding a bit.
The historically cheaper joints here are 4.49 today...Murphy USA and ALON....so it's sliding a bit.
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