Oil Prices / Gas Prices Question

[jlbenedict]

Ok.. just reading a little article this morning:

How come when oil prices per barrel rise, its immediately passed on to us consumers at the pump?

Now, on the other hand, when oil price per barrel decreases, it seems they continue to gouge and rape us, and gas prices at the pump remain the same.

For example, the article I read stated that oil has dropped $7 in the last three weeks (from $75 and some change down to $68 and some change per barrel).. YET here in Maryland, gas prices at the pump still remain between $2.97 - $3.05!!

But you goddamn better believe, when the oil prices were rising, they were quick to pass it down to the pump..

Sometimes, it really doesn't make sense. But I guess, myself being a consumer, I'm not supposed to know what really goes on behind the scenes.

 

[Slew Foot]

Its been like that for the last 20 years or so, get used to it.

 

[JS80]

because they can

 

[Queasy]

Because they hedge their money on the side of frugality. They have to make sure they have money to cover the costs of their product. That's why it goes down slower.

 

[The Batt?sai]

Originally posted by: Queasy
Because they hedge their money on the side of frugality. They have to make sure they have money to cover the costs of their product. That's why it goes down slower.

thats bogus. they are just greedy

 

[Queasy]

Originally posted by: quasarsky

Originally posted by: Queasy
Because they hedge their money on the side of frugality. They have to make sure they have money to cover the costs of their product. That's why it goes down slower.

thats bogus. they are just greedy

Go run a gas station for a couple of months and get back to me on that.

 

[The Batt?sai]

Originally posted by: Queasy

Originally posted by: quasarsky

Originally posted by: Queasy
Because they hedge their money on the side of frugality. They have to make sure they have money to cover the costs of their product. That's why it goes down slower.

thats bogus. they are just greedy

Go run a gas station for a couple of months and get back to me on that.

why don't u do it then 😛

 

[JS80]

Originally posted by: quasarsky

Originally posted by: Queasy
Because they hedge their money on the side of frugality. They have to make sure they have money to cover the costs of their product. That's why it goes down slower.

thats bogus. they are just greedy

gas stations don't make money off gas to begin with. my uncle had one. that shvt lost money even though it had good volume.

 

[Queasy]

Originally posted by: quasarsky

Originally posted by: Queasy

Originally posted by: quasarsky

Originally posted by: Queasy
Because they hedge their money on the side of frugality. They have to make sure they have money to cover the costs of their product. That's why it goes down slower.

thats bogus. they are just greedy

Go run a gas station for a couple of months and get back to me on that.

why don't u do it then 😛

I'm not the one calling them greedy because I have no clue how gas prices are set by gas stations.

 

[Queasy]

Originally posted by: JS80

Originally posted by: quasarsky

Originally posted by: Queasy
Because they hedge their money on the side of frugality. They have to make sure they have money to cover the costs of their product. That's why it goes down slower.

thats bogus. they are just greedy

gas stations don't make money off gas to begin with. my uncle had one. that shvt lost money even though it had good volume.

Yep...which is why everything in the gas station/convienence store is overpriced. Selling goodies and crap is where gas stations really make money.

 

[GeneValgene]

Originally posted by: JS80
because they can

that's exactly it...it's all supply and demand. why would they lower the price, if people are willing to buy it at a higher price?

if i was selling PS3s that i bought for $50 each from a supplier for $300 each on ebay, why would i lower the price if my supplier started charging me $25 each, but people are still willing to buy it at $300 on ebay?

 

[Linflas]

Originally posted by: quasarsky

Originally posted by: Queasy
Because they hedge their money on the side of frugality. They have to make sure they have money to cover the costs of their product. That's why it goes down slower.

thats bogus. they are just greedy

If they were truly greedy they would figure out how to run their business this way.

Due to Hollywood accounting, it has been estimated that only about 5% of movies officially show a net profit, and the "losers" include such blockbuster films as Rain Man, Forrest Gump, Who Framed Roger Rabbit, and Batman.

Yet we don't regularly see threads here bitching about the $10.00 paid for a movie not to mention the extra $10.00 for a coke and popcorn.

 

[Apex]

Originally posted by: Queasy
Because they hedge their money on the side of frugality. They have to make sure they have money to cover the costs of their product. That's why it goes down slower.

Correct, but unpopular.

 

[desy]

Its not just gas its everything
When I took econ, prices are 'downward sticky' menaing quick to rise slow to fall
for a myriad of reasons.
Gas is noticable because they post the price on every thing sticking out of the ground in town. People don't notice a can of tomato soup going up or down much.

 

[Nyati13]

Originally posted by: Apex

Originally posted by: Queasy
Because they hedge their money on the side of frugality. They have to make sure they have money to cover the costs of their product. That's why it goes down slower.

Correct, but unpopular.

Also, keep in mind that the station owners only have 5 cents or so of wiggle room, and that the pricing is much more dependant on what the distributers/refiners/Oil Corporations charge.

People in general (not pointing to anyone here) need to stop blaming the gas stations, it isn't their fault, they don't control anything about oil/gas prices.

 

[jlbenedict]

What makes it even more weird, is I can drive the two miles over the board to PA, and its $2.69..

Oh well....

 

[Phoenix86]

Originally posted by: Queasy

Originally posted by: quasarsky

Originally posted by: Queasy
Because they hedge their money on the side of frugality. They have to make sure they have money to cover the costs of their product. That's why it goes down slower.

thats bogus. they are just greedy

Go run a gas station for a couple of months and get back to me on that.

This is a bogus argument. The oil companies do not own the gas stations in most cases. Gas stations do NOT buy oil, they buy gas. OIL companies who produce gas is where the gouging is happening, and if it wasn't greed they wouldn't be making record profits.

Follow the money.

 

[JulesMaximus]

If it bothers you so much then go buy a more fuel efficient vehicle.

Edit-It cracks me up when someone who drives a vehicle that gets 12 mpg b!tches about high gas prices. Disclaimer: I'm not saying the OP drives one of these vehicles, just making an observation.

 

[Queasy]

Originally posted by: Phoenix86

Originally posted by: Queasy

Originally posted by: quasarsky

Originally posted by: Queasy
Because they hedge their money on the side of frugality. They have to make sure they have money to cover the costs of their product. That's why it goes down slower.

thats bogus. they are just greedy

Go run a gas station for a couple of months and get back to me on that.

This is a bogus argument. The oil companies do not own the gas stations in most cases. Gas stations do NOT buy oil, they buy gas. OIL companies who produce gas is where the gouging is happening, and if it wasn't greed they wouldn't be making record profits.

Follow the money.

Go run an oil company for a couple of months and get back to me on that.

 

[SampSon]

Futures.

 

[JS80]

Originally posted by: Queasy

Originally posted by: Phoenix86

Originally posted by: Queasy

Originally posted by: quasarsky

Originally posted by: Queasy
Because they hedge their money on the side of frugality. They have to make sure they have money to cover the costs of their product. That's why it goes down slower.

thats bogus. they are just greedy

Go run a gas station for a couple of months and get back to me on that.

This is a bogus argument. The oil companies do not own the gas stations in most cases. Gas stations do NOT buy oil, they buy gas. OIL companies who produce gas is where the gouging is happening, and if it wasn't greed they wouldn't be making record profits.

Follow the money.

Go run an oil company for a couple of months and get back to me on that.

Oh noez Exxon makes a 11% profit margin omg they are so evil. Google makes 24% I don't see you nerds rushing to protest their "price gouging."

 

[pontifex]

Originally posted by: jlbenedict
What makes it even more weird, is I can drive the two miles over the board to PA, and its $2.69..

Oh well....

i undertsand each state has different gas taxes. don't know if thats true or not.
i'm just pretty sure that we won't see gas go down to what it used to be. if it gets down to 2.50 i'll be surprised.

 

[BigJ]

Originally posted by: Linflas

Yet we don't regularly see threads here bitching about the $10.00 paid for a movie not to mention the extra $10.00 for a coke and popcorn.

We do sometimes see them, but for the most part people just don't go to movies much anymore is my guess.

 

[Scarpozzi]

This in This with This Equals You

 

[zebano]

Originally posted by: jlbenedict
What makes it even more weird, is I can drive the two miles over the board to PA, and its $2.69..

Oh well....

Only 2 things in life are certain death and taxes.