Gas prices at the pump

[racolvin]

Pricing at the pump can change, it seems, by the hour. Generally the blame for rising gas prices is the rise of crude oil prices, which is simple enough to understand.

However, the price of crude to be delivered to the refinery 30 days or more from the purchase doesn't change the price of what's in the tank at the gas station - that's already been refined and paid for by the station operator.

I guess what I'm asking is, how is it that prices can rise so quickly for product that hasn't yet been created and distributed?

R

 

[gigapet]

my guess.....at the retail level the gas station owners dont want to have to use their own capital to purchase more expensive gas a month from now so they raise prices to compensate for it.

 

[daveshel]

Just stop thinking and bend over.

 

[ValkyrieofHouston]

Originally posted by: daveshel
Just stop thinking and bend over.

LOL... I was gonna say that!

 

[Cuda1447]

Originally posted by: daveshel
Just stop thinking and bend over.

rofl

 

[Linflas]

Originally posted by: gigapet
my guess.....at the retail level the gas station owners dont want to have to use their own capital to purchase more expensive gas a month from now so they raise prices to compensate for it.

Actually that is the correct answer. The station owner/operator is compensating for the anticipated cost of his next fuel delivery.

 

[BriGy86]

how much does a quart of oil cost for your car these days?

and how much did it cost a year ago or 2 years ago?

doesn't that oil come from the same place as the oil that's refined and made into gas comes from?

that's something to think about

 

[EKKC]

it seems theres no use complaining. move to iraq or venezuela.
last year it was afte a hurricane that prices moved above the 3 dollar range and took 2 months to drop back to below 3 levels. now its not even the summer and there's already a shortage. when the summer hits, along with a few hurricanes, you'd bet your arse that they would hit 4 or 5 dollar per gallon

 

[tallest1]

Bush unveils steps to counter high oil prices
"President George W. Bush on Tuesday gave U.S. refiners extra time to pay back emergency oil loans, and called on the government to find ways to ease new clean-burning gasoline regulations.

In a speech to the pro-ethanol Renewable Fuels Association, Bush said the U.S. Congress should find a way to approve permits to build new refineries a year after they are filed.

Bush said he told the Environmental Protection Agency to use "all available authority to grant waivers that would relieve critical fuel shortages," and said he would seek more waiver authority from Congress if needed."

OMFG, why are corporate handouts the solution to everything for this guy???

Reuters Link

 

[SaturnX]

I, for one, welcome our petroleum overlords.

 

[racolvin]

But isn't that a form of price gouging? I mean, when Katrina hit or other things affected the price of crude and station owners (independent as well as company owned) jacked up prices, the government smacked some of them around for gouging. While there isn't a current disaster like that, the price rise is the same - they charge more for product they already paid less for because the market for crude 30days+ out is jittery, so they're taking advantage of it. How is this not the the same thing?

Pardon me for being dense folks but I'm just having one of those moments where I feel really stupid and am just not "getting it" I guess

 

[EKKC]

Originally posted by: tallest1

Bush unveils steps to counter high oil prices
"President George W. Bush on Tuesday gave U.S. refiners extra time to pay back emergency oil loans, and called on the government to find ways to ease new clean-burning gasoline regulations.

In a speech to the pro-ethanol Renewable Fuels Association, Bush said the U.S. Congress should find a way to approve permits to build new refineries a year after they are filed.

Bush said he told the Environmental Protection Agency to use "all available authority to grant waivers that would relieve critical fuel shortages," and said he would seek more waiver authority from Congress if needed."

OMFG, why are corporate handouts the solution to everything for this guy???

Reuters Link

i dont look to the government for promoting renewable energy. i look to bill gates.
he just bought some Ethanol Fuel company and their stocks just rose for the 2nd day

 

[moshquerade]

i believe gas stations cannot raise prices on a whim. if the price is set for what they have delivered to their tanks they cannot change the price until the truck delivers more to them, and they are charged a higher price. otherwise it IS price gouging.

 

[EKKC]

Originally posted by: racolvin
But isn't that a form of price gouging? I mean, when Katrina hit or other things affected the price of crude and station owners (independent as well as company owned) jacked up prices, the government smacked some of them around for gouging. While there isn't a current disaster like that, the price rise is the same - they charge more for product they already paid less for because the market for crude 30days+ out is jittery, so they're taking advantage of it. How is this not the the same thing?

Pardon me for being dense folks but I'm just having one of those moments where I feel really stupid and am just not "getting it" I guess

it is. i dont think anybody gets it. as long as the government doesn't do crap to regulate the industry, look for 6 dollar per gallon by 2007 at the pump

 

[mrchan]

You're not paying for the gas in their tanks, you're paying for the cost to replace the gas in their tanks.

 

[BriGy86]

Originally posted by: mrchan
You're not paying for the gas in their tanks, you're paying for the cost to replace the gas in their tanks.

what?

so you're saying that when i buy a new LCD monitor im not paying for the monitor im paying for the cost of restocking the shelf?

 

[Tom]

They can charge whatever they want, don't buy it if it's too high.

 

[CraigRT]

Originally posted by: daveshel
Just stop thinking and bend over.

hahaha

 

[Oscar1613]

Originally posted by: Tom
They can charge whatever they want, don't buy it if it's too high.

yep... unfortunately price gouging laws only apply in the event of civil emergencies such as natural disasters

 

[Specop 007]

Originally posted by: tallest1

Bush unveils steps to counter high oil prices
"President George W. Bush on Tuesday gave U.S. refiners extra time to pay back emergency oil loans, and called on the government to find ways to ease new clean-burning gasoline regulations.

In a speech to the pro-ethanol Renewable Fuels Association, Bush said the U.S. Congress should find a way to approve permits to build new refineries a year after they are filed.

Bush said he told the Environmental Protection Agency to use "all available authority to grant waivers that would relieve critical fuel shortages," and said he would seek more waiver authority from Congress if needed."

OMFG, why are corporate handouts the solution to everything for this guy???

Reuters Link

I'm failing to see any corporate handouts there.
Or are you just drinking that Liberal Koolaid again?

 

[Genx87]

Originally posted by: tallest1

Bush unveils steps to counter high oil prices
"President George W. Bush on Tuesday gave U.S. refiners extra time to pay back emergency oil loans, and called on the government to find ways to ease new clean-burning gasoline regulations.

In a speech to the pro-ethanol Renewable Fuels Association, Bush said the U.S. Congress should find a way to approve permits to build new refineries a year after they are filed.

Bush said he told the Environmental Protection Agency to use "all available authority to grant waivers that would relieve critical fuel shortages," and said he would seek more waiver authority from Congress if needed."

OMFG, why are corporate handouts the solution to everything for this guy???

Reuters Link

How else are you going to promote an industry that is seeing record profits? What incentive do they have to create a cheaper alternative?

 

[dmcowen674]

Originally posted by: moshquerade
i believe gas stations cannot raise prices on a whim. if the price is set for what they have delivered to their tanks they cannot change the price until the truck delivers more to them, and they are charged a higher price. otherwise it IS price gouging.

How do you explain the Stations that have hired kids just to change the sign outside every hour???

 

[Jzero]

Originally posted by: moshquerade
i believe gas stations cannot raise prices on a whim. if the price is set for what they have delivered to their tanks they cannot change the price until the truck delivers more to them, and they are charged a higher price. otherwise it IS price gouging.

If that were true, I'd have to believe that the gas station down the street gets a new shipment of fuel every 4 hours!

Simply increasing price due to anticipated increases in supply price isn't gouging.

 

[shoRunner]

Originally posted by: tallest1

Bush unveils steps to counter high oil prices
"President George W. Bush on Tuesday gave U.S. refiners extra time to pay back emergency oil loans, and called on the government to find ways to ease new clean-burning gasoline regulations.

In a speech to the pro-ethanol Renewable Fuels Association, Bush said the U.S. Congress should find a way to approve permits to build new refineries a year after they are filed.

Bush said he told the Environmental Protection Agency to use "all available authority to grant waivers that would relieve critical fuel shortages," and said he would seek more waiver authority from Congress if needed."

OMFG, why are corporate handouts the solution to everything for this guy???

Reuters Link

what is the solution? do tell pls

 

[Queasy]

Originally posted by: tallest1

Bush unveils steps to counter high oil prices
"President George W. Bush on Tuesday gave U.S. refiners extra time to pay back emergency oil loans, and called on the government to find ways to ease new clean-burning gasoline regulations.

In a speech to the pro-ethanol Renewable Fuels Association, Bush said the U.S. Congress should find a way to approve permits to build new refineries a year after they are filed.

Bush said he told the Environmental Protection Agency to use "all available authority to grant waivers that would relieve critical fuel shortages," and said he would seek more waiver authority from Congress if needed."

OMFG, why are corporate handouts the solution to everything for this guy???

Reuters Link

Where are the corporate handouts? Increasing the speed for approval of new refineries does nothing but help supply problems in the future. Relaxing some of the environmental regulations helps ease current supply problems since there are dozens of different blends used across the United States. If you read some more you'd also discover that Bush is taking the populist route by talking about taking away tax credits to oil companies.