What's the deal with gas prices?

[Turn7]

They have shot up on average about .15 per gallon around here lately.

I felt like I was robbing the station this morning when I filled up and only paid 1.51

It is averaging 1.59-1.61 at most stations in my part of Houston. Make me feel better by reporting how much more your paying please!

[RaceGrrl]

Over the weekend I paid 1.93 for premium. I know prices are always higher on the weekend, but that was the highest I'd seen them in a long time.

[Warlock!]

I've seen $1.40-$1.60 around ohio lately (for the cheap stuff)

Warlock!

[Turn7]

My prices are for regular unleaded. I should have mentioned that.

The price jumps .10 for each grade accordingly. +10 for plus and +20 for super.

[mapguy]

$1.59 average price here in smAlbany, NY.

[cartman]

Originally posted by mapguy
$1.59 average price here in smAlbany, NY.

I guess I'm fortunate living in Georgia. We have the cheapest gas taxes in the country I believe and therefore the cheapest gas. I'm getting premium for around $1.50 a gallon. Regular is usually around $1.20 - $1.30. We also have the cheapest cigarette and booze taxes I believe. Packs of smokes are at about $2.30 for premium brands. I hear they're like $6.00 a pack in New York, yikes, I'd have to quit if they were that expensive down here.

[RichK]

Bay Area, CA:

Around $1.95 for regular. I hope you all feel better now.

[JoeBob]

Funny you should mention that. At lunch time today, I noticed that Regular Unleaded had gone up to $1.74/gallon. It was 15 cents/gallon cheaper a few days ago.

If you want to track prices in your area, check out http://www.gasbuddy.com/

[nz_climber]

Last time I filled up it was about $1.08 but i think it gone up a little bit since then thou (rusty will know thou)

O yeah that is kiwi money and per litre.. so work it out

[nz_climber]

ok I did some research.. (im at work - so wat else was i to do :) )

$1.08 NZD = $0.62 USD

1Gallon = 3.79 L

So:

0.62 * 3.79 = $2.3498 USD/Gallon

wow thats heaps expensive - im going to be calling my shell rep and complaining.... (im talking to you rusty ;))

:shakehead :saywhat:

[Sean O'Gorman]

You know what cheers me up when I'm paying for gas? Laughing at other peoples misfortunes! $1.95? :laugh:

[TKGAngel]

Originally posted by cartman
I guess I'm fortunate living in Georgia. We have the cheapest gas taxes in the country I believe and therefore the cheapest gas. I'm getting premium for around $1.50 a gallon. Regular is usually around $1.20 - $1.30. We also have the cheapest cigarette and booze taxes I believe. Packs of smokes are at about $2.30 for premium brands. I hear they're like $6.00 a pack in New York, yikes, I'd have to quit if they were that expensive down here.

Gas around Buffalo NY is about $1.63-1.69 per gallon for unleaded.

As to your comment about the smokes, what many people in WNY do is go to the reservation, where there are no taxes.

[RichK]

Originally posted by SOG35
You know what cheers me up when I'm paying for gas? Laughing at other peoples misfortunes! $1.95? :laugh:

It's okay, I just consider the extra money an "I'm not living in Ohio" charge. :p

[Sean O'Gorman]

Originally posted by RichK
It's okay, I just consider the extra money an "I'm not living in Ohio" charge. :p

Thats true, you don't have to put up with Napoleon. :D

[JT265]

Paid $0.669 Canadian this morning, but I see it's gone to $0.749 now.

Conversion as follows:

$0.669 X 3.785 = $2.53 US Gallon CDN

$2.53 X 71% = $1.796 US dollars.


WHEEEEEEEEEEEEEEW!!!!!


After all that, I forgot what I was buying. :D

[fourrunner]

I have no idea how much, I never look, less painful that way!!

What am I gonna do, park the car?

In Canada, I just "Bum" a ride off JT! :cool: :thumbup: ;)

[Cam]

Paid a buck 48 on the eastside after I left work tonight..... Just got cigs at the Marathon up North here its $1.70!!!!!!!!!!!!!!!! WTF? This is BS! :thumdown:

[nz_climber]

I think they saw you coming cam

Gas Station Guy1: Look at this fella walking, looks abit strange to me

Gas Station Guy2: Yeah he looks like a aussie to me

Gas Station Guy1: Prolly likes cart too loser

CAM: howdy, I'll just have the gas and a pack of ciggies thanks

Gas Station Guy2: (whispers) told ya he a aussie - charge him more!)

Gas Station Guy1: ok that'll be $1.70 a gallon thanks

CAM: WTF!!! its only 1.40 down the road

Gas Station Guy1: its a aussie tax, we got to pay it to the ARU to help fund the rugby team, cause they suck

CAM: o ok then

Gas Station Guy2: Sucker

:D

[chop456]

$1.49 for diesel today.

[mapguy]

Originally posted by cartman
We also have the cheapest cigarette and booze taxes I believe. Packs of smokes are at about $2.30 for premium brands. I hear they're like $6.00 a pack in New York, yikes, I'd have to quit if they were that expensive down here.

I'm moving to Georgia. :D Premium smokes cost about $4.50 here in Upstate NY. That $6 a pack is probably for NYC.

Gas prices have just bumped up to just over $1.60. What does my mother-in-law do? Buys a Dodge Durango. :saywhat:

[Kiwifan]

We are charging $NZ1.15 per litre at the pump and making about 8% gross. I know the guys in the cities are getting on half of that.

I don't know what it's like in your country but it's sure not a quick way to make money. :cry:

When people moan to me and go on about the prices I just ask them what they do for a living and ask if they would run a business returning only 8% gross and that's when they look at you funny. :)

Cheers, Rusty.

PS, I have no idea why the prices are rising given the "war" is over and the NZ dollar is so high at the moment.:shakehead

[KLang]

Originally posted by Turn7
They have shot up on average about .15 per gallon around here lately.

I felt like I was robbing the station this morning when I filled up and only paid 1.51

It is averaging 1.59-1.61 at most stations in my part of Houston. Make me feel better by reporting how much more your paying please!

For some reason the gas in Fulshear (a little west of Houston) is always cheaper. $1.47 this morning. :)

[Ed_Severson]

"PS, I have no idea why the prices are rising given the "war" is over and the NZ dollar is so high at the moment."

This doesn't entirely explain the phenomenon in New Zealand, but it's part of the cause ... 7 refineries here in the States went offline over the weekend with the power outage in the northeast.

During summer, fuel consumption is at its highest, and the refineries in the U.S. have to run at damn near full capacity all summer long to keep up with the demand. When seven plants lose power and go offline for 3 or 4 days, the demand eventually surpasses the supply and price goes up.

Simple stuff, really.

Now, if you think gasoline prices are too high, try making it yourself, and see how that works out. ;)

Gasoline ... cheaper than water!

[indyfan31]

Gas prices in the So. Cal. area have gone up about .40 in the last three weeks, $1.91 for ARCO regular.

The B.S. line I heard was that a gasoline pipeline in Phoenix broke and was shut down. So they're trucking gasoline into Phoenix where it's almost $4 a gallon, WHAT THE HELL DOES THIS HAVE TO WITH CALIFORNIA????

[Turn7]

Originally posted by indyfan31
Gas prices in the So. Cal. area have gone up about .40 in the last three weeks, $1.91 for ARCO regular.

The B.S. line I heard was that a gasoline pipeline in Phoenix broke and was shut down. So they're trucking gasoline into Phoenix where it's almost $4 a gallon, WHAT THE HELL DOES THIS HAVE TO WITH CALIFORNIA????

Exactly...That should mean that the refineries cant get as much to one area and would create a surplus in one area and thusly cheaper prices.

People in Pheonix would be paying more because it is at a premium.

I suppose the same reason that when a barrel of oil goes up in price the effect is immediatly seen at the pump but, when it goes down, the oil companies claim that they have to go through the inventory before the prices will reflect the price drop.

[Ed_Severson]

"Exactly...That should mean that the refineries cant get as much to one area and would create a surplus in one area and thusly cheaper prices."

Uh, not true.

First of all, having a shortage in one market does not necessitate a surplus in another. When you have a pipeline rupture like the one that happened in Arizona, the fuel that would normally be running through the pipeline sits in storage on tank farms until adequate alternative transportation -- in this case, trucks -- is available to deliver it to the market cut off by the busted pipeline.

It isn't as if the oil companies would decide to send Arizona's fuel supply to Colorado simply because the pipeline was out of service.

As far as why the Arizona pipeline mess has an effect on prices in California ... there are two major fuel delivery pipelines into Arizona. One comes from Texas, the other from California. If the one from Texas is out of service, you can bet on your mother's life that the one from California is doing its best to make up the deficit.

That explains part of the price increase ... as for the rest of it, see my explanation above.

I love these "oil companies are evil" threads. There are some smart folks around here, but it's like all common sense gets tossed out the window when these discussions start.

Blind rage and tunnel vision ... gotta love it! :)

[RTKar]

Lately in Chicago's far northern burbs, prices have been hovering around $1.55-$1.60. Today I drove by a couple stations and the price was up around $ 1.70 something for the cheap stuff. I needed beer and gas, the last station before home was still at $1.59 so I stopped, bought a couple of Russian beers at the store next door and then got some gas, as I was pumping the guy was changing the numbers on the sign...up a dime on all grades. I just made it. :thumbup:

[RichK]

Ed,
I'm not educated in the ways of oil companies and gas production/distribution, but how do you explain what Turn7 said below? I've noticed this too.



Originally posted by Turn7


I suppose the same reason that when a barrel of oil goes up in price the effect is immediatly seen at the pump but, when it goes down, the oil companies claim that they have to go through the inventory before the prices will reflect the price drop.

[Ed_Severson]

The short answer to that question is that I don't explain it -- there's one big flaw in that statement you quoted.

Most service stations aren't owned by oil companies, and the oil companies don't set the consumer's price of a gallon of gasoline. So, right off the bat, blaming the oil companies for the price you pay at the pump is inaccurate.

Now, for the meat and potatoes answer ...

Suppose the price of a barrel of oil goes up. There are 2 potential causes for this -- 1) OPEC woke up on the wrong side of the bed today (and this one has no logic in it, so I won't attempt to address it), or 2) Supply is low and demand is high.

Supposing that's the case, the simple fact that supply is low is enough to cause the price at the pump to increase. A lot of people fall victim to the misconception that you buy a barrel of oil at a given price, refine it into gasoline and other products, and sell those products (or at least the gasoline) within a 2 or 3-day span. That's not the case. In general, it takes 10 to 14 days for the barrel of oil a refiner purchases to hit the market as gasoline.

In the event of, say, a power outage which knocks seven refineries offline, :gomer: , the shortage quickly becomes a more severe situation, and seeing that refining oil is a tricky and unpredictable business, most service station owners raise their prices when they see the price of a barrel going up as a small insurance policy against refinery shutdowns and such, which could leave them with insufficient product to meet the consumer demand. The key thing to remember here is that service station owners don't like panic buying -- they depend on steady daily business, and they'll generally offset the effects of panic buying whenever they can. This is particularly true during the summer months, when consumer demand is at its highest.

On the other hand, if the price of a barrel of oil goes down, quite simply, demand is low and supply is high. That being the case, when the oil companies claim that they have to rid themselves of inventory, they're not kidding. Why service station owners who don't lower prices in this situation react the way they do is, in my opinion, unexplainable by a simple economic analysis.

That said, I think those service station owners are few and far between, but as our Kiwi friend pointed out above, they don't exactly make a pile of money one way or the other -- every little bit helps, and if you can squeeze the consumer for a higher price for an extra day or two, it might be worth it to try for some folks.

There are also a few other points I would like to add ...

First is that, as I said above, I think such behavior is the exception rather than the rule, so to speak. Secondly, I think you see this behavior more frequently in the summer than in winter, simply because the oil industry as a whole runs much closer to the ragged edge during the summer months than at any other time. Lastly, when the price of a barrel of oil goes down and prices stay constant, the two can often be totally unrelated. The price may stay the same because of transportation issues or because the competitor's price stayed the same.

It's not a terribly complicated business, but most people don't want to understand it -- they just want to be angry. And I'm here to thwart them. :)

[RichK]

Thanks. Here in California we have our own refineries that make our own special blend (for a while racers were driving to Nevada to get the "old stuff", until all oxygenated fuels were banned), so I see alot of price movement every time a refinery catches fire (seems to be about once a year).

[Kiwifan]

Thanks Ed, I gotta friend. I gotta friend. I gotta friend. er, no that's Ed from Crank Yankers. :gomer:

Seriously, Ed nailed it. Thanks buddy. For some reason everyone rags on us because of 'high prices' but I remember way back before deregulation when the whole country had the same pump price and we made 10%!! Those were the days and nobody ever complained. It's all about perception. We made 10% but because we were all the same it was ok, now guys are making 3-4% GROSS and suddenly they are money hungry evil b&stards. A Shell guy told me once that people hated paying for gas because it's treated as a commodity, a bit like electricity. Chocolate, wine and beer on the other hand are ok. :)

I find it amusing that people pay $NZ2.50 for 750ml of WATER or $NZ85.00 for 28ml of HP printer ink and there's not even a murmur. Actually, maybe regarding HP there is a ripple of discontent. :) :) Sorry if anyone here works for HP, great product, hate the prices of ink. ;)

Rusty rant over. :)

[nz_climber]

Hey Rusty I agree with you about the ink thing.. every couple of refills you could buy a new printer!!

And water.. why people buy it i'll never know, cause its free out of the tape!!

Also back to the petrol, I know you guys can't help the prices (i learned that in my years of living wif ya) so I was really just having a dig :p

I don't mind paying for petrol, as I love driving :) but wat really pisses me off when the goverment get a bit tight on money, so up the tax on petrol!! but no one can help that!

[Kiwifan]

I know, I know. ;)

The tax(es) on fuel are running just on 50% of the pump price. :(

Now, get back to work! :)

Rusty.

[JT265]

Originally posted by nz_climber

And water.. why people buy it i'll never know, cause its free out of the tape!!



I know you guys haveta hang upside down in that part of the world ;), but what kinda tape do you get water from? :D

[Kiwifan]

Tap, tap, tap, tap, still waiting for an answer Aaron. :) :)

Rusty.

[Turn7]

Ed,

Why is it that many of the refineries do turnarounds during the summer? If the production schedule is "at the ragged edge" wouldn't they want to keep as much refining capabilities online during such a time and schedule maintenance during the winter? Weather isn't an excuse because we haven't had snow in Houston in 23 years.

Secondly, if the power outage in the NE has anything to do with it, why are the prices only going up 15-25 cents? That isn't enough of a price increase to curb most consumers to eliminate 3 days worth of consumption out of the usual amount of gas that they use. If the goal is to lower the usage, then a much higher price is warranted. With everyone consuming the same amount and only paying a smaller increase it is just pure profit taking and playing on any excuse that they can.

I don't think it is the station owners profiting at the pump. I am sure the actual station owner is hurting more and more each day with the oil co. mandated pump upgrades that allow the consumers to pay at the pump and not visit the store where most of the station owners profit is made.


As far as the station owners cutting the margins, I believe that they are still making the same amount of profit. 8% profit on something that cost $1 is about the same as making 5% on something that cost $1.50. They are still making the 8 cents a gallon they always have, it is just that when the price goes up a smaller profit margin is needed to get the same return.

I have know a couple station owners and they aren't poor by any means, especially if they offer garage service, soda and snacks along with the gas.

[eiregosod]

here in the land of eire go bragh, we pay $2.85 for a gallon, though we dont have to travel hundreds of miles to get to where we wanna :p

[nz_climber]

stupid spelling mistakes, i meant tap (as rusty my grammer and spell checker has pointed out!)

Although i have got water from tape, the tape was holding blisters together and soaking wet feet (but i wouldn't drink that in a hurry!! :mad: )

[EDwardo]

Yesterday, gas at the local station here in Kansas City was$1.54.
Today it is $1.69.
Still cheaper than a gallon of bottled water! Drink up and put the hammer down. It's only money.
Oh by the way, some wackos firebombed my local cigs and gas station last week. I guess they didn't like the fact that 2 Iranian guys owned it. THAT really pisses me off. Those guys always took care of me and have owned the station for years. But hey still have a sense of humor about it.
Spray painted on the plywood covering the front is:
"We Closed for construction. Come back later".