Exxon record profits again

slowrev · Aug 21, 2006

ByronBob said:
I just did a run from NY to TN this weekend. Gas was....

NY $3.05
PA $2.79
OH $2.65
KY $2.59
TN $2.78

Am I paying the difference in taxes??

Partially Bob, but that does not explain the differences in prices between gas in different towns run by the same company. I have seen gas prices .10 higher in a town that is 30 miles from the refinery, vs one that is 120 miles away from the same refinery and I know that both stations were owned by the same company and both got their gas from the same refinery.
I know the law of competition and supply and demand, but it appears that some of us are subsidizing the lower costs in other areas with our higher prices.

MadReferee · Aug 21, 2006

Everybody pays the same price for gasoline at the bulk distribution terminal, one price for branded fuel and another slightly lower price for unbranded fuel.

Now add state tax.

Add a few cents per gallon for hauling.

The distributor adds his markup and the retailer adds his markup. For regular gas, the independent retailer markup is usually 10-15 cents per gallon. I am going to guess that the distributor markup is similar.

I was an independent retailer selling branded fuel purchased from a distributor. Depending on the retail agreement with the distributor and branded company there are certain expenses that must be covered by the markups. The branded company (Citgo in my case) covered my credit card transaction fees. This is not always the case. The distributor covered all my pump and tank maintenance. This is also not always the case. My profit was 10 cents per gallon and I did not get to set the actual price. This is also not always the case as many retailers set their own price or have other agreements (minimum gallonage and free rent, with reduced profit per gallon, etc).

Piedmont3 · Aug 21, 2006

I believe, the difference in price from place to place is partially caused by the fact that the oil companies are charging as much as they can for their product. In some areas it is easy/easier for people to chage their habits. If they have access to mass transit then they simply decide to ride the train or the bus today. Where I live our entire mas tranist system is very small and very limited as far as area served. I have to drive to work/ or move. closer to work. The closest residential area to my work is approximately 3 miles. I could walk that on most days in 45 minutes or an hour. If I could afford a house in that area. I can't. I live in a nice area, on 5 acres. 27.5 miles from my place of employment. I have to drive. The gas station closest to my house is at $2.90 /gal. The one closest to my work is $2.93/gal. The 4 that are on oposite corners of the "truck stop corner" on the interstate are all at $2.76 or $2.77. The oil companies charge as much as they can for their product. Some places are better equipped(pay better wages, have less competition) to pay the higher prices than others.
This is all my opinion. Based on what I see happening here in my local area.

SkyPup · Aug 21, 2006

MadReferee said:
I was an independent retailer selling branded fuel purchased from a distributor.

Ah Ha! Just another cog in the vast international conspiracy to defraud and deceive the consumer who wishes they could have $0.25 a gallon gasoline with their $0.05 loaf of bread and $0.05 quart of milk....... and still live in the 22nd century! LOL

MadReferee · Aug 21, 2006

As I said earlier, the wholesale price of fuel is the same for everybody. Prices are usually determined by how much profit the local distributor and retailer want to make and their profit markups at the pumps typically remain fixed. It's the price at the bulk distribution terminal that changes. In other words, the price differential between the bulk distribution center and the consumer at the pump remains fixed at about 30-50 cents per gallon (not counting taxes).

The middlemen are not gouging the consumer, but have for the most part held the line on their markups. The lower volume stations are the ones whose markups have gotten out of line and that's why they will stay lower volume stations.

SkyPup · Aug 21, 2006

But I'm still wondering whatever happened to the $0.05 loaf of bread the supermarket used to sell before inflation set in about 80 years ago or so?

SkyPup · Aug 21, 2006

The real truth of the matter is that in 1920, gasoline cost over twice what it does today in real purchasing power.....

dmccarty · Aug 21, 2006

Ah Ha! Just another cog in the vast international conspiracy to defraud and deceive the consumer who wishes they could have $0.25 a gallon gasoline with their $0.05 loaf of bread and $0.05 quart of milk....... and still live in the 22nd century! LOL

And if I'm elected to office I promise there will be a chicken in every pot for Sunday dinner!

Oh, thats been done as well!!

I wish I could remember the term I heard on the radio years ago but the oil companies have geographies set up as region. Part of the pricing for the regions is based on what the market will bare for that area. Just like what other companies will do.

My penultimate fill up was at 2.99 a gallon. Then it went to 3.05. Last week in dropped to 2.95. I filled up at 2.95!

Usually my luck is such that I fill up on the highprice. Course it was still 2.95!

Later,
Dan

slowrev · Aug 21, 2006

I just don't understand why people buy a $50,000 vehicle and then cry over $3 gas.

rickmacheske · Aug 21, 2006

ByronBob said:
I just did a run from NY to TN this weekend. Gas was....

NY $3.05
PA $2.79
OH $2.65
KY $2.59
TN $2.78

Am I paying the difference in taxes??