Bent over at the pump.

[tonemonster]

I was bent over by Mr. Arco at the pump this mornng.

Hey, what you do on your own time is your business. we are not here to judge you.

JUST kidding! I couldnt let that one pass up.

[Jayster]

Come to the UK we're £1.34 a litre!!!! That's about $8.00 a gallon

Yeah, it wasn't near so bad for y'all before the pound sterling was cancelled as the worlds reserve currency, that will be happening with the us dollar soon enough. Any of you history buffs remember when the dollar took over status as the worlds reserve currency, life in the UK went downhill very quickly.......

[Axewielder]

Thanks to the chinese gases will never go down.

They brought GAS down with that crappy Desolation series.

[Chad]

I'd rather pay it than walk. If pricing gets to a level where walking looks more attractive, then I'll do so....or look into other means of transportation. End of story.

[Cygnus X1]

R#6 and Hellbat are closest to the truth.
Speculation is one thing.
A commodity such as crude oil should not be allowed in the free
market for speculation like pork bellies.
The rules of supply and demand disappear when derivative markets run the show.
On the other hand, the quick reactions can work the other way.
Speculation that the US was ready to get into the market with approved offshore
drilling in 2008 caused the base prices to plummet nearly overnight.

People tend to forget those events, but they are just as instructive.

If the POTUS had approved Keystone, it would have had a quick and drastic
negative (positive to us, the consumer) impact on prices.
Turmoil in any of the controlling OPEC countries has an immediate impact
on our price at the pump.

Lest we forget.
Stock prices and oil company profits have little to do with profits at the pump.
Operating gas stations does not make money as gross (not net) profit is only in
the 4 to 5% range.
And don't punish your local gas pumper...they are only making 2-3% of that, just
to have the privilege of running a franchise.
They make the money off the cigs, beer, and hot dogs.

Truth, I know.
My wife ran the books for Exxon stations for years.

Road to hell is based on good intentions, really our problems that we
see now were started under the late Nixon, and then the Carter administrations.
The Department of Energy harmed us as much as the Department of Education.
We are subject to OPEC's will, and our schools...well...that's a whole other topic.

[canadian bacon]

Yeah, it wasn't near so bad for y'all before the pound sterling was cancelled as the worlds reserve currency, that will be happening with the us dollar soon enough. Any of you history buffs remember when the dollar took over status as the worlds reserve currency, life in the UK went downhill very quickly.......

Personally I subscribe to this theory. Bottom line is the rest of the world wants our fuel, NOT our US Dollars - still supply and demand. High demand for fuel (worldwide), and high supply of US Dollars (stimulous!) reducing demand for them.

[Chad]

R#6 and Hellbat are closest to the truth.
Speculation is one thing.
A commodity such as crude oil should not be allowed in the free
market for speculation like pork bellies.
The rules of supply and demand disappear when derivative markets run the show.
On the other hand, the quick reactions can work the other way.
Speculation that the US was ready to get into the market with approved offshore
drilling in 2008 caused the base prices to plummet nearly overnight.

People tend to forget those events, but they are just as instructive.

If the POTUS had approved Keystone, it would have had a quick and drastic
negative (positive to us, the consumer) impact on prices.
Turmoil in any of the controlling OPEC countries has an immediate impact
on our price at the pump.

Lest we forget.
Stock prices and oil company profits have little to do with profits at the pump.
Operating gas stations does not make money as gross (not net) profit is only in
the 4 to 5% range.
And don't punish your local gas pumper...they are only making 2-3% of that, just
to have the privilege of running a franchise.
They make the money off the cigs, beer, and hot dogs.

Truth, I know.
My wife ran the books for Exxon stations for years.

Road to hell is based on good intentions, really our problems that we
see now were started under the late Nixon, and then the Carter administrations.
The Department of Energy harmed us as much as the Department of Education.
We are subject to OPEC's will, and our schools...well...that's a whole other topic.

A friend and his family run two local gas stations. I had always wondered what their margins are. Can you clarify those numbers? Are you saying 2% to 3% of 4% to 5%? Or 2% to 3%? They don't sell cigs or beer.

[Cygnus X1]

A friend and his family run two local gas stations. I had always wondered what their margins are. Can you clarify those numbers? Are you saying 2% to 3% of 4% to 5%? Or 2% to 3%? They don't sell cigs or beer.

I appeared to double backwards on that margin.
Sweet wife clarifies with this:

"The pump price is a reflection of the purchase from the truck.
So if the truck delivers at 4 in the morning as usual prior to market opening
at price X, then the market is X+1, then that's the margin we have to sell at in order to
refill in the next couple of days.
The POS (point of sale) number comes in at 7 AM to the computers.
We have already invoiced at the 4AM price.
So, when the price goes up we often lose money, only to hope to regain in the
next cycle.
So you see a sudden jump, and we really made no money on it".

Me:
Best hope is 4%, then go by volume.
They have to restock at the next-highest price, and hope they gambled correctly
enough to make money paid from the last batch to pay for the next.
Worst part is the delay between delivery and the paycheck.
That's what I see.

[Chad]

Thanks for the info. Like most things, it's much more complicated than it appears on the surface. I'd think it'd be hard to make a living on max margins of around 4%, but the people I know appear to make a nice living, so they must be doing a lot more volume than it seems.

For the gas stations, I can only imagine how infuriating it must feel to constantly hear people groan and make stupid comments about gas prices all day long, day in and day out. There's a lot that goes on behind the scenes before it arrives at a gas station, but the people working the front lines are the ones who take the most beating.

Side note: just an observation, but IRL the people who talk about gas prices the most seem to be over 65 years of age. It's a cliched conversation that I try to never talk about. I don't like paying anymore than I have to, but it doesn't change my standard of living a whole lot either way and it's my choice as to whether to buy it or not. Like I said in a previous post, I'd rather pay the current prices than walk. Nobody is "bending anybody over". Despite the market and politics, it's still a person's choice to buy it or not. If you elect to pay it, then you are responsible for being "bent over".

[Predator1]

The same station I filled up at this morning was ten cents higher on my drive home. Lube up and quit bitchin?

[Nimitz]

Lube up and quit bitchin?

Fug that... REVOLUTION!!!

[tomanyjacksons]

Greed, plain and simple.

[nateb]

All you SUV drivers go buy a fucking hybrid already.

Fuck that. I'll buy one once they make a hybrid/electric that doesn't look like a piece of shit with wheels. I am not driving a SUV but, I am driving a gas guzzler. The good thing is that my work is only 5 miles from home.

-Nate

[canadian bacon]

Don't forget the motorcycle. The most fun you can have with high gas prices!

[Jayster]

But Wait, Cigz...


As I drove into work 87 was 3.50 &9/10ths.... on my way home passing the same station it was 3.65&9/10ths????


I normally see fluctuation throughout the day where I live... Is there some actual law or something as to what you've stated?