In time for summer: lower gas prices (sales, buying)

[steel7]

This is good news. The national avg is 2.91 a gallon but i paid 3.08 today. Thats 17 cents more then i should be paying. We sure get ripped off here in ca plus the gas burns quicker. Gas should be about 1.50 a gallon. Those days are long gone. I doubt it if we ever see it below 2.00 gal. Greedy OPEC will make sure of that. http://news.mobile.msn.com/en-us/art...1&aid=37104138

[Just Rachel]

I'll believe it when I see it. Ours here (at the top of the state) has been at 3.25 for months. Don't even ask me about the cost of our propane. Aargh!

[steel7]

My car is a gas guzzler (15 city/20 highway). Not good!

[CamaroGuy]

No telling with this oil spill what's gonna happen. We could seriously be looking at $4.00 gas prices this summer!:-(

[jm31828]

I have a question on this. I see on the news that crude oil prices are down to 3 month lows now, have been for a few days. But prices at the pumps have not gone down a cent here in my local area. Ok, OK, I can understand they bought gas at higher prices so they have to continue to sell it at those higher prices, so I can MAYBE understand.
BUT, when the price of crude goes up over a couple day period, gas stations immediately raise their prices- even though the gas in their tanks was purchased at lower prices than what it's going for on the market.

So, what gives? Their excuse about having to continue selling high because they bought high doesn't hold water when they don't do the opposite when they bought low and crude prices go up, so is this anything other than raising prices just because they can?

[sonarrat]

Originally Posted by jm31828

I have a question on this. I see on the news that crude oil prices are down to 3 month lows now, have been for a few days. But prices at the pumps have not gone down a cent here in my local area. Ok, OK, I can understand they bought gas at higher prices so they have to continue to sell it at those higher prices, so I can MAYBE understand.
BUT, when the price of crude goes up over a couple day period, gas stations immediately raise their prices- even though the gas in their tanks was purchased at lower prices than what it's going for on the market.

So, what gives? Their excuse about having to continue selling high because they bought high doesn't hold water when they don't do the opposite when they bought low and crude prices go up, so is this anything other than raising prices just because they can?

Retail gas sales is a very low-profit business. In a stable market, you make the station more money buying a pack of cigarettes than you do filling up your tank. Those price spikes are the whole reason why these stations stay in business.

[Voyageur]

Originally Posted by CamaroGuy

No telling with this oil spill what's gonna happen. We could seriously be looking at $4.00 gas prices this summer!:-(

Why?

The United States consumes 19,500,000 (yes, nineteen and a half million) barrels (yes, barrels) of oil per day.

The Deepwater Horizon disaster, while an environmental travesty, is going to have only a very, very small impact on the oil supply.

[Voyageur]

Originally Posted by jm31828

I have a question on this. I see on the news that crude oil prices are down to 3 month lows now, have been for a few days. But prices at the pumps have not gone down a cent here in my local area. Ok, OK, I can understand they bought gas at higher prices so they have to continue to sell it at those higher prices, so I can MAYBE understand.
BUT, when the price of crude goes up over a couple day period, gas stations immediately raise their prices- even though the gas in their tanks was purchased at lower prices than what it's going for on the market.

So, what gives? Their excuse about having to continue selling high because they bought high doesn't hold water when they don't do the opposite when they bought low and crude prices go up, so is this anything other than raising prices just because they can?

It takes approximately 10 weeks for a change in the price of crude on the market to filter to convenience stores. Until that 10 weeks have elapsed, they're selling gas that was refined from the pre-change cost. After 10 weeks, the gas at the consumer end of the supply chain finally reflects the change in market price.

[04JETTA]

Originally Posted by Voyageur

Why?

The United States consumes 19,500,000 (yes, nineteen and a half million) barrels (yes, barrels) of oil per day.

The Deepwater Horizon disaster, while an environmental travesty, is going to have only a very, very small impact on the oil supply.

think it's 21m now

Originally Posted by jm31828

I have a question on this. I see on the news that crude oil prices are down to 3 month lows now, have been for a few days. But prices at the pumps have not gone down a cent here in my local area. Ok, OK, I can understand they bought gas at higher prices so they have to continue to sell it at those higher prices, so I can MAYBE understand.
BUT, when the price of crude goes up over a couple day period, gas stations immediately raise their prices- even though the gas in their tanks was purchased at lower prices than what it's going for on the market.

So, what gives? Their excuse about having to continue selling high because they bought high doesn't hold water when they don't do the opposite when they bought low and crude prices go up, so is this anything other than raising prices just because they can?

my understanding is the price of oil affects the price of oil a month later, so the price of oil now, affects the price of gas in june then in june it will effect the price in july etc etc

[Voyageur]

Originally Posted by 04JETTA

think it's 21m now

It was 19.5 million last summer. I doubt it's leaped 7% in less than a year.

EIA - Petroleum Basic Data

At any rate, the point about the spill having a less than negligible impact on the oil supply stands (and I've just quoted domestic usage - oil is a global commodity and the global consumption is approximately 4x U.S. consumption alone).