Isn't it interesting how as the crude prices drop the gasoline retailers are not reducing prices as quick?

Question

Remember how when crude prices were going up daily,

the gasoline retailers were so quick to raise prices twice and three times a day.

They don't seem so anxious to lower as price per barrel drops.

As a matter of fact ALL last week gas prices here stayed

at $4.09 per gallon, while crude prices were dropping.

The retailer don't seem to mind keeping up to date while crude prices increase,...but they definitely are not as concerned

with accuracy as those crude prices drop. Admit it.

Answer 1

You are right-- I was thinking the same thing-

I also think it is funny how much it jumps up vs how much it falls back- up 10 cent down by 6...??? That extra 4 cent keeps adding up-- to those record setting profits that the oil giants are rolling in!! But they aren't doing anything wrong and they need more tax breaks..................................... Please..... they ARE satans spawn- looking to destroy our country- not make it better!

Answer 2

The price off crude oil has tripled in the the last two years ,did the price of gas no.The cost to produce the product does not set the price,it`s the demand and what people are willing to pay.It always takes a while any way for the price to drop.The gas station owner can not sell the gas for a lower price if he bought it at the higher price.The price will only go down after he has filled up his tanks with the cheaper gas.When the price goes up he has to raise the price right away so he will have the money to fill his tanks again at the higher cost.

Answer 3

It's simple logic. If you have expensive gasoline, you want to get rid of it. If you have cheap gasoline, you want to keep it.

You would do the same thing if you made widgets into transputers. If the price of widgets went up, you would raise the price of transputers immediately because the value of the widgets you used to make them has gone up and you need the extra money to refill your supply of widgets.

If the price of widgets goes down, you aren't going to drop the price of transputers you made with expensive widgets unless competitive pressure forces you to. Plus, you need as much money as possible immediately so you can buy lots of widgets while they're cheap.

Answer 4

Retailing gasoline is not a "profit center."

The retailer is paying out most, if not all or more than the money collected at the pump.

The wholesale price, the state and federal taxes and the fees charged to the retailer by your credit card company means that the retailer loses money on every gallon sold.

The profit is generated elsewhere within the business.

My grandfather and several uncles operated service stations in the 1940's and 50's.

Service garages, cafe's and today, "convenience stores", always generated the profit.

Grandpa made more money selling cokes and crackers than he did selling gasoline.

But you need the gasoline, don't you?

Answer 5

I was just thinking that the other day Jim.  The only way I can stick it to the man is by not driving and using public transportation as much as I can.