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Originally Posted by ssump29
I'll answer that for you. Just on 2-21-11, we delievered 9003 gallons of unleaded to our gas station that we own but lease out. The total cost with all the taxes and surcharge added in was 3.1296 per gallon. Right now the man who leases and runs it has the gas at 3.39. Now reason why he has taken it up so far is because by the time he runs out of that load and needs to re-up, the cost could be very well over 3.30-3.40 range. And if he buys that at that price and say the market starts heading down and forcing him to sale at 3.20 or so, that whole last load cost is being sold at a lost. So keep in mind if he doesn't make more then a few cents on that load he recently brought in, he would eventually start just dumping money into a losing business if doesn't put enough markup in the selling price to keep up with the future cost and unknown market adjustments.
Hope that helps.
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That is a very good explanation of the process, much better than how I was trying to explain it to the guy across the pumps from me last night when filling up. It's not the gas stations themselves that are raking in the cash, it's the oil companies and those speculating and making money off the rise in oil prices.
Quote:
Originally Posted by midnighter
The main thing about high gas prices that sucks is how we get screwed at the grociery store too. Gas goes up, freight goes up, grocieries go up, my income stays the same but with decreased buying power.  |
That is a great summary. Oil prices go up, everything has to go up because it takes oil to move products around this world. Fuel Surcharges have been in effect since 2001 when diesel fuel first broke the $1.50 per gallon barrier. Fuel then stabilized around that $1.50 per gallon rate until 2003 when it has steadily climbed since then. 2003 @ $1.50 per gallon over an average per government infaltion standards of 3% increase per annum equates to $1.85 per gallon (3% on top of 3% on top of 3%, etc). So gas prices have went well beyond standard US inflation which has forced the prices of many things, like food to also increase at a higher than standard inflation rate. What has not increased any faster than at best the 3% (false government reported standard inflation rate) is peoples pay. For the vast majority in the US their buying power is much less today than it was 7 to 10 years ago.
For me, I drive a 2005 Chevy Silverado 4x4 as my daily driver. I bought this in late 2004 when gasoline prices were about $1.65 per gallon average around here. The truck gets about 14.6 mpg. I drive about 480 miles per week to work and home. My wife drives about the same mileage but has a car that averages 22 mpg. So in 2004 we spent about $360 per month on gasoline. When fuel is averaging $3.30 per gallon, we are spending $360 per month more on fuel now than we did just a little over 6 years ago. So it is a big hit for us when fuel rises and thus our interest in purchasing a Camaro this summer. If fuel does hit the $5.00 rumored cost and I can get the Camaro and average 10 mpg better than the truck, I would save $265 per month on fuel alone. Gas prices affect me.