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How are Gas prices Set

M

Mayfriday0529

Diamond Member
With all the gas prices issues going on at the moment, anyone know how the price is set.

I mean Friday the price was 2.23 regular. That is the highest i seen it in Oceanside, NY.

Saturday it was 2.09 in the morning and at night it was change to 2.13, it stayed at 2.13 sunday and today monday morning its 2.25 2cents more than friday night.

Its like random luck you get a lower price on the day your gas tank is almost empty.
 
Gas is a commodity, just like any other - With one exception:

Output is set by OPEC.

Other than that, it works like any other supply/demand market.

Viper GTS
 
The stations get a fax or email message with the daily prices. If the station is a franchise (Shell, Speedway, etc.) then the main company arranges for the suppliers to deliver the gas. This makes it cheaper than each individual station arranging for deliveries, since a large company can negotiate for lower prices. Then, after the supplier makes its delivery, the mother company (Shell, Speedway, etc.) sends the station owner a fax or email with the price they should charge for their latest delivery.
 
why in the hell does it fluctuate so much though? you don't see oranges for 1.15/lb and then spike up 30% in the afternoon, and then back to something else the next day......does the oil industry really have realtime inventory systems with all their gas stations to update the price that much??
 
Originally posted by: edmicman
why in the hell does it fluctuate so much though? you don't see oranges for 1.15/lb and then spike up 30% in the afternoon, and then back to something else the next day......does the oil industry really have realtime inventory systems with all their gas stations to update the price that much??
Click to expand...
Oil is a commodity that's traded on the open market. It's not like fruit prices because those are privately set. Gas can fluctuate on an hourly basis because it's traded just like any other publicly owned entity.
 
Originally posted by: jumpr
The stations get a fax or email message with the daily prices. If the station is a franchise (Shell, Speedway, etc.) then the main company arranges for the suppliers to deliver the gas. This makes it cheaper than each individual station arranging for deliveries, since a large company can negotiate for lower prices. Then, after the supplier makes its delivery, the mother company (Shell, Speedway, etc.) sends the station owner a fax or email with the price they should charge for their latest delivery.
Click to expand...

but why do franchise gas stations usually have higher gas price than individually owned ones? or is that not common?
 
Originally posted by: Viper GTS
Gas is a commodity, just like any other - With one exception:

Output is set by OPEC.

Other than that, it works like any other supply/demand market.

Viper GTS
Click to expand...

If it were simply supply and demand, then you'd see gas stations with "Out of gas" signs. I have yet to see any therefore I cannot believe that theory.

KK
 
so i guess we are screwed, we cant really win, either you get lucky to get a lower price or unlucky for pumping gas on the day its high.
 
Originally posted by: KK
Originally posted by: Viper GTS
Gas is a commodity, just like any other - With one exception:

Output is set by OPEC.

Other than that, it works like any other supply/demand market.

Viper GTS
Click to expand...

If it were simply supply and demand, then you'd see gas stations with "Out of gas" signs. I have yet to see any therefore I cannot believe that theory.

KK
Click to expand...
They can just order more gas if they run low, that's not the problem. What Viper is getting at, is that they'll charge as much as they can get away with, which is set by supply/demand.
 
Originally posted by: ViRGE
Originally posted by: KK
Originally posted by: Viper GTS
Gas is a commodity, just like any other - With one exception:

Output is set by OPEC.

Other than that, it works like any other supply/demand market.

Viper GTS
Click to expand...

If it were simply supply and demand, then you'd see gas stations with "Out of gas" signs. I have yet to see any therefore I cannot believe that theory.

KK
Click to expand...
They can just order more gas if they run low, that's not the problem. What Viper is getting at, is that they'll charge as much as they can get away with, which is set by supply/demand.
Click to expand...

I think more emphasis is on "what they can get away with". Honestly, they could charge $4-$5 a gallon and nothing would really change. Sure, people would gripe and complain, probably a lot more, but would it realistically change anything? People aren't going to stop buying gas. People aren't going to sell their cars en masse and drive around in a fleet of Geo Metros. The oil conglomerate has us by the collective balls and there's nothing we can do about it.
 
I would like to know how they can fluctuate so much from day to day even though the station has already for the gas in their tanks. Seems like they should set one price when their tanks are filled and that price should hold until they are filled again.
 
Originally posted by: Jnetty99
so i guess we are screwed, we cant really win, either you get lucky to get a lower price or unlucky for pumping gas on the day its high.
Click to expand...

We have it made, our gas is still cheap considering other countries.
 
Originally posted by: oniq
Originally posted by: Jnetty99
so i guess we are screwed, we cant really win, either you get lucky to get a lower price or unlucky for pumping gas on the day its high.
Click to expand...

We have it made, our gas is still cheap considering other countries.
Click to expand...

Our gas is the exact same price, their governments just tack on more taxes.

Viper GTS
 
Competing w/other stations in the area, too.

You should try living in Canada where the gas does change several times a day.
 
Originally posted by: Thraxen
I would like to know how they can fluctuate so much from day to day even though the station has already for the gas in their tanks. Seems like they should set one price when their tanks are filled and that price should hold until they are filled again.
Click to expand...

Pump price will go up if the indicators show that the fule costs is going up even if no fuel is currently being delivered.

Pump price will not go down on news that the price will be going down. Only when the fuel has been delivered.

In otherwords, the fuel price for what is in the station tanks are going to be at the highest possible.
 
Whatever... a 15 cent difference means $2.40 extra on a 15 gallon fill-up (my 21.9 gallon capacity truck doesnt' take much more than that unless I run it dry). It's not earth shattering that it goes up 2 or 3 cents...

I'd complain if it went from $1.50 to $2.00 overnight... but I'll live with what's going on until it starts coming down as a whole.
 
The thing that really pisses me off is how the gas stations are so slow to drop the prices. Once they got us used to paying $1.40-$1.50, that's it won't drop much when the price of oil/gas falls. They're so eager to raise prices but they don't want to have to lower when they start paying less.
 
Since Gas prices are higher truck companies and airlines and other places that use fuel a lot are including extra price to cover for that, like delivery companies UPS, Fedex and such.

so we not only get screwed when buying but also purchasing other services.

whats funny is how come my weekly pay is not going up higher since i have to fork more money to get to work.
 
AS the stock moarket seems to fall, the price of gas also goes up.

Those who control the prices may be ensuring that their net worth is always on the upswing.
 
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