Results 1 to 4 of 4
  1. #1 Itís a matter of context 
    Ancient Fire Breather Retread's Avatar
    Join Date
    Dec 2011
    Location
    I came to Texas as soon as I could
    Posts
    16,071
    ďIf gas prices are $4 and go down to $3 a gallon, then theyíre overjoyed. But if itís $2 and goes to $3, then itís the end of the world.Ē

    And donít give me the bulls*** about price gouging oil companies. Been there, done that dozens of times in my lifetime and not one single time has any evidence supported the accusations. If the wellhead price of oil goes up, the oil company expense goes up as well and in multiple forms.
    It's not how old you are, it's how you got here.
    It's been a long road and not all of it was paved.
    . If you ain't havin' fun, it's your own damn fault
    Reply With Quote  
     

  2. #2  
    Power CUer FlaGator's Avatar
    Join Date
    Apr 2004
    Location
    The Swamps of N. Florida
    Posts
    26,278
    What has always bothered me is that the media mentions that the price of oil has gone up and within days, long before the higher priced oil has been delivered to the refineries gas prices have gone up. How does that work? From what I understand it takes roughly 6 weeks from the time to oil is extracted till it reaches refineries capable of turning it into gas.
    Liberals! The real fascists.
    Reply With Quote  
     

  3. #3  
    Senior Member Angry Old White Man's Avatar
    Join Date
    Jan 2017
    Location
    Swamps of Southern La
    Posts
    2,104
    I don't think there was ever a vacation season that gas prices didn't go up, just supply and demand I suppose. One way to force prices down is for all citizens to do less driving and it will automatically happen once it reaches a price so high that people have no choice. Gas has a shelf life so less demand means less manufacturing and prices eventually drop. Last year one of the most fuel efficient vehicles was a Volkswagen diesel car getting around 50 miles per gallon, yes the price of diesel is higher but there is an advantage driving one that gets 50 miles per, especially when you drive at a decent speed and not speeding all the time. I think one of the best little cars I ever drove or should say worked on was a little turbo powered bug and it was a beast in power and yet idling you couldn't even tell it was a diesel.
    Reply With Quote  
     

  4. #4  
    Ancient Fire Breather Retread's Avatar
    Join Date
    Dec 2011
    Location
    I came to Texas as soon as I could
    Posts
    16,071
    Quote Originally Posted by FlaGator View Post
    What has always bothered me is that the media mentions that the price of oil has gone up and within days, long before the higher priced oil has been delivered to the refineries gas prices have gone up. How does that work? From what I understand it takes roughly 6 weeks from the time to oil is extracted till it reaches refineries capable of turning it into gas.
    It may average out to that but itís far from a firm number. In Oklahoma some oil is gasoline at the pump in less time than that while international exchanges in unrefined crude may take months to get to the refinery.

    But, for arguments sake, look at the retailers. For the most part, they do not have a contract price but pay the spot price on the day of delivery. I see/hear that my next 10k gallon delivery is going to cost me more than Iím charging for whatís in the tank today. I need to have the costs of that delivery covered when it gets here. What can I do? If I donít raise my pump price immediately, I wonít get 10k gallons but something less. And if that process continues for 4-5 deliveries, Iíll have empty tanks before my turn in line comes around again.

    The reactions to the price of crude is also variable. I did not raise my price the last time it rose but it went up another two dollars in two days. Somewhere in there I have to make a move.

    Consider this, the price posted on the exchange is up. What does that mean to the producer? His expenses go up the same as the consumer. His transportation sees the same fuel cost as you, all of his service suppliers see that same increase, his expense sheet just got bigger, etc.
    It's not how old you are, it's how you got here.
    It's been a long road and not all of it was paved.
    . If you ain't havin' fun, it's your own damn fault
    Reply With Quote  
     

Bookmarks
Bookmarks
Posting Permissions
  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •