Gasoline in your area

Friday: $3.27 for a low, $3.59 for a high.
Depended on what station you went to.

Saturday: $3.59 everywhere.

No shortages, lines or rationing that I'm aware of.
 
It was $3.62 at one station on Thursday and $3.69 when I passed it going home. Filled up today at another station for $3.99.
 
Can someone please explain to me how a company can charge $3.65 yesterday, $3.85 this morning, and $3.95 tonight for a gallon of regular gas at the same station... presumably from the same holding tank that they had filled earlier in the week... and were making a profit charging $3.65?

This appears to be a case of "getting what the traffic will bear," more commonly referred to as "gouging."

I heard a wise Saudi Oil Minister recently state "The stone age did not end because they ran out of stones." The petroleum industry is pricing itself out of business... the sooner the better.
 
Can someone please explain to me how a company can charge $3.65 yesterday, $3.85 this morning, and $3.95 tonight for a gallon of regular gas at the same station... presumably from the same holding tank that they had filled earlier in the week... and were making a profit charging $3.65?

This appears to be a case of "getting what the traffic will bear," more commonly referred to as "gouging."

I heard a wise Saudi Oil Minister recently state "The stone age did not end because they ran out of stones." The petroleum industry is pricing itself out of business... the sooner the better.
JohnHenry said:
This appears to be a case of "getting what the traffic will bear," more commonly referred to as "gouging."
By Jove, I think you've got it! :) :bigups
 
Wow, the oil market has jump to almost to $121.00 per barrel today. A $15.50 increase in one day.:( It was about 8 days ago at $92.00 per barrel.
 
The gas stations here are still either low stock or completely out. What is funny is that it seems to be a localized issue in this county only. It's been on both the news and in the newspaper about panic buying.

Since lots of people here still use two cans and a string for communication, it's no surprise that word travels fast. :D
 
$3.32 to $3.48 here with most stations at the $3.35 mark.
Hey, as long as we will pay it, they will charge accordingly.
If there is a big drop in demand, the price will drop accordingly. That was evident the past month.

The thing that ticks me off is the price gouging in the areas where they have no fuel readily available because of transportation problems. The $5 a gallon price within 100 miles of a $3.50 a gallon price in the areas hit by the storms seems like they are crapping on their customers.
Money talks and it seems to be saying "I'm a jerk so pay up".
 
Charles - you're dead on (like always...well most of the time anyway :) )

In AL, as well as some of the other southern states, price gouging laws don't come into affect unless the governor declares a state of emergency. At least that's how I interpret the law to read (and I am not a lawyer). So, yeah, it's basically saying "screw you."
 
It jumped back to about $4 here today. It seems a few stations are out of premium but all seem to have gas most of the time. The gas situation is interesting since we are supposedly fed by the Colonial pipeline that starts in Texas and goes through the southeast to NY.

Jared, gas is another sport that is rigged.
 
We ar at 4.49 here, which is nice compared to the $5 a gallon last week. We probably have 40 gas stations in the area, and only 12 of them have gas left.
 
Oil goes up, gasoline goes up, right?
Not in this area.
$3.31 to $3.48 with most stations at $3.32 this morning. Evidently, they aren't watching the news media and are making their decisions based on cost of product and a decent profit margin.
:hmmm:
Interesting concept.
 
I'll try to explain some of it, yet realize it is a supply and demand issue. I will use Jared as the example because he was the thread starter.

There are two major pipelines that originate in Houston and go across the south (Alabama included) to Georgia before heading north to New Jersey. These 2 lines carry gasolines and distillates (jet fuel / diesel) individually. Along the way, refineries and tank farms inject the various grades of gasolines and diesels into the respective batch in the pipeline. Also, product is sent to various locations along the way through smaller pipelines.

Now a good majority of the gasoline is what we call conventional (regular with nor oxygenates added) yet there are a lot of boutique gasolines also. A boutique gasoline is one that is made primarily for a specific area (thank you California) for which there are dozens. These boutique gasolines have a higher production cost due to the lower volumes.

Back to the refineries and tank farms. If there is a power disruption due to a hurricane, it will take longer for a refinery to get back on line. Also, various companies have standards for tank volume heights for hurricanes, meaning tanks may not be full of product. Also, there a various components that are injected into the gasoline when it is blended and these may be in short supply also. There are two specific refineries along the route that account for a majority of the production of gasoline (basically they are numbers 1 and 2 in the nation). One is in Port Arthur, Texas and the other is in Baton Rouge, Louisiana. Port Arthur took a major hit from the hurricane with major losses to the workers homes. It is a long and time consuming process to restart a refinery safely.

I won't try to get into the economics of why prices seem to rise several times a day. All I will say is that companies sell their product to jobbers who sell it to stations. And different regions will have greater fluctuation of prices due to the type of gasoline required.

One last note. During Hurricane Rita, the EPA relaxed gasoline restrictions in Houston (not sure of other areas) for a period of time in order to get product to the pump.

Hopefully this helps a little in understanding the dynamics of the distribution side of the industry. If you have questions, I will try to answer them as best I can. Good luck and be safe.
 
Back
Top