Right now the oil that it takes to makes a gallon of gallon costs about a buck, Oil is selling for roughly forty five dollars for a 42 gallon barrel. The rest of what you (and I) pay goes to taxes, the cost of refining and transporting oil/gasoline, and profit for the downstream retailers and wholesalers.
For anyone who thinks they are getting screwed, put yourselves in my shoes, I am barely getting 40% for the oil I produce compared to last year, and when I "fill up my tank" I run a thousand gallons at a time, but somehow I am still painted as the villain here. and yes I do need more money, all you fuckers need to run out and by gas guzzling SUV's and muscle cars, so we can get back to $100 oil and I can start living the life of luxury again. Those chicas in Costa Rica need your help. Don't do it for me, do it for the putas. Fill up your tank today. BTW Doc, I have noticed the huge disconnect between the price at the pump and the price at the well head too. If it makes you feel any better, you are only getting fucked at one end of the equation, I am getting fucked both ways. Somehow though, I doubt there is a single person on this board feeling sorry for me.I'm seeing gas prices continuing to rise despite the price of crude dropping below $50/bbl.
I know its been asked before, but refresh my memory... how is it that when oil was $100/bbl, I was paying $3.49/gallon for 91 premium. Oil is $49.80 / bbl, and I just paid $3.49 per gallon to fill up my tank. The price of gas has wavered between $3.29 and $3.59 for the last year despite greater volatility in the distributor markets.
So what gives?
Are you buying your gas from Muslims? JK!
Not sure what's going in in your neck of the woods but I am paying less recently.
Right now the oil that it takes to makes a gallon of gallon costs about a buck, Oil is selling for roughly forty five dollars for a 42 gallon barrel. The rest of what you (and I) pay goes to taxes, the cost of refining and transporting oil/gasoline, and profit for the downstream retailers and wholesalers.
For anyone who thinks they are getting screwed, put yourselves in my shoes, I am barely getting 40% for the oil I produce compared to last year, and when I "fill up my tank" I run a thousand gallons at a time, but somehow I am still painted as the villain here.
and yes I do need more money, all you fuckers need to run out and by gas guzzling SUV's and muscle cars, so we can get back to $100 oil and I can start living the life of luxury again. Those chicas in Costa Rica need your help. Don't do it for me, do it for the putas. Fill up your tank today.
BTW Doc, I have noticed the huge disconnect between the price at the pump and the price at the well head too. If it makes you feel any better, you are only getting fucked at one end of the equation, I am getting fucked both ways. Somehow though, I doubt there is a single person on this board feeling sorry for me.
It's all supply and demand. oil companies are going to charge as much as they can get for refined products, regardless of the cost of crude oil. Just more profit for the company.
So sometimes you wonder if these oil companies every have a clue.
The better the price the more they make in profits.
I always go online (GasBuddy.com) and find the best gas prices in my area or somewhere else.
This way the ones that charge the most will not get my money.
If a station is too expensive and no one buys there the price will drop to the point where they start selling a reasonable amount of gasoline.
You are saying that a lowering of demand at one station will cause a sales and therefore a price decline, but what you are not factoring in to the equation is that other stations will get a corresponding uptick in business, thus causing them to raise there price.
Boycotts don't work for products that people need, only for things they want.
cuz no matter how much people complain about the price of gas most buy it at a convenient place rather than shopping around. I guess the exception to what I say is if the station happens to make most it's income from service, which I don't have a feel for how likely that is these days. Most major oil company branded stations have specific volume targets and if they are missing them due to being out of line on price, they change.
BTW what you cited was for boycotting a brand - and I agree with that conclusion. I was agreeing with the boycotting of a single high priced station.
-- Modified on 8/4/2015 3:19:23 PM
I do try to avoid stations/brands that always seem to have the higher price. Exxon and Chevron are a couple that come to mind. It seems like if there are four or five stations to choose from, Exxon and Chevron will be the most expensive of the lot 90% of the time, and I tend to avoid that brand for that very reason.
Now would I drive across town to save a nickel a gallon? Of course not, but when given a choice between a "discount" retailer like RaceTrack or QuickTrip, and higher priced brand like Exxon or Chevron, I will almost always pick the discounter.
One exception to that rule is that in my part of the country there are some stations that proudly announce that their product is 100% gasoline with NO ETHANOL at all added to their product. I will go out of my way to patronize those stations regardless of price, but those stations do tend to be price competitive anyhow.
Fuel prices are arbitrarily pulled out of BIG Oil's ass and forced upon the public. And if someone finds a way to double or triple the fuel mileage out of a common automobile/internal combustion engine they and their families are in very real fear of their lives. And our wonderful Congress enables, supports and protects Big Oils despotic stranglehold on the citizenry while allowing the US Military to act as Big Oil's private security company.
I drive a diesel powered VW Golf. At present I'm enjoying prices over a Dollar LESS than high-test gasoline per gallon. However; many times over the years I have suffered the converse in respective pricing, But "diesel" IS and has always HAS been cheaper to produce than gasoline.
The traders in Commodities market who bid on oil features add about $1.50 to a gallon of gas.
The total cost of the oil that it takes to make a gallon of gasoline today is not even close to $1.50 a gallon, much less the few pennies that oil traders add to the cost.
Here is the most dumbed down breakdown of what goes into the price of a gallon of gasoline. It still won't be dumbed down enough for some of you to actually understand, but it would have to be written in crayon to get down to the level of many of you.
Here is what Bernie said about speculators dealing with oil features.
You cannot ignore the Speculator's margin in oil prices.
-- Modified on 8/4/2015 1:52:34 PM
As usual, when government meddles in private enterprise, both suppliers and consumers get fucked.
and by "meddling" I don't mean "regulating" Government is supposed to regulate business as it's been proven that business is incapable and unwilling to regulate itself, but when Government goes well past the regulating it is tasked to do and starts meddling in the market, we end up with anomalies like low oil prices not being reflected at the pump.
It's no wonder so many of the GOP supporters are lost.
They buy into that big government BS.
Then love getting screwed by big companies doing what they want with no oversite.
Also GaGambler calling himself a independent or DoctorGonzo saying he never voted for a republican is funny.
Just look at their comments and the double talk again. Lol
and by "meddling" I don't mean "regulating" Government is supposed to regulate business as it's been proven that business is incapable and unwilling to regulate itself, but when Government goes well past the regulating it is tasked to do and starts meddling in the market, we end up with anomalies like low oil prices not being reflected at the pump.
If you ignore the role Speculators play in oil prices, you don't know how the markets work.
I assure you I know how the markets work.....the price moves to reflect that cost plus some profit of marginal supply which for a while was $80 or higher but given the excess supply which now exists has dropped. Or did the speculators just stop?
where did I defend big business or put down the government in this thread
Yeah see if that works, anyone running for office on that platform won't make it to his/hers inaugural speech. Of course I'm joking here so don't trip.
Two parts to the answer (I will assume your data is correct)
1) At $100 Oil and $3.49 gasoline the oil is $2.38/gallon leaving the rest of things such as refining, transporting, taxes, etc at $1.11/gallon (which is not too much as taxes alone were around $0.70/gallon). So if oil falls by $50 (or $1.19/gallon) and all else remains the same gasoline would be around $2.30/gallon (the taxes would actually decline a little so maybe $2.25/gallon)
But all else has not remained the same, thus
2) The price of gasoline does reflect the marginal cost to supply the product, plus usually (but not always) a little profit. Relative to a year ago when oil was $100, supply in California has been constrained due to the February explosion at the ExxonMobil refinery in Torrance. The took out around 10% of California production and more importantly took California from being surplus in gasoline (ie an exporter) to being short in gasoline (ie an importer). The refinery is still not producing any significant quantities of gasoline and based on what they said on recent 2Q conference call it is not clear when they will. The cost to bring in the right quality of gasoline from other parts pf the world (where they have some, but not much capability to make it) is large, and can easily add 30 to 40 cents per gallon to the California market if supply is sustainable. The problem is the supply comes in chunks and then disappears so wholesale prices are seeing huge spikes followed by declines. And those spike are what are driving the retail prices. And yes, some in the market are probably taking advantage of the situation.
I know its been asked before, but refresh my memory... how is it that when oil was $100/bbl, I was paying $3.49/gallon for 91 premium. Oil is $49.80 / bbl, and I just paid $3.49 per gallon to fill up my tank. The price of gas has wavered between $3.29 and $3.59 for the last year despite greater volatility in the distributor markets.
So what gives?
Here in the midwest, fuel is about $1 cheaper. It looks to be even cheaper in the southeast. Maybe this is all due to the loss of California production that Duane brought up?
http://www.gasbuddy.com/GasPriceMap
Also, there seems to be huge disparities from one location in LV to another. It's true with things other than gas so maybe some stations simply don't experience enough competition.
Go here.
http://www.gasbuddy.com/Charts
Plugin Las Vegas (it's hard to find, listed under the "V"s.)
Plugin LA,CA
Check the show Crude oil price
I think the state to state difference in gas prices has to do with state taxes, correct me if I am wrong. Here in Tampa area, it is now $2.33 a gallon.
The tax difference between Iowa and Nevada is only 2 cents but I can buy gas today in Iowa for $1 less than some places in Nevada
They did not supply you anything. They brainwashed you with Republican BS