What are you guys paying for gas?

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)
 
Filled up Rather, hit the pump cut off at $125 this morning. I use the Gas Buddy app and got diesel at the 'ol Murphy Express this morning at $4.57. Cheapest in town was $4.55 but would have been out of the way to get to. Got me 27 gallons so about 5 gallons short of a fill up. Tank holds 36 gallons. May be a while before I can fill up on one credit card swipe. I was happy that they upped the cut off to $125, it was $100 just last month. There are still a few places that cut the pump off at $75. I will usually swipe twice on those and actually get a full tank of fuel.
 
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.
 
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.
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.
1647383110689.png

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.
 
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.
View attachment 215512

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.
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?
 
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.
 
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?
Did some goggling and found this…

Part 3,4 and for Rack and Retail are what we are discussing.
 
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.
 
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