Why is it that gas and diesel prices raise almost every day even though the stations don't get deliveries?

Question

but maybe once a week? The price shouldn't go up until they get there next fill-up. So why do the consumers have to pay for gas that was cheaper when it was delivered?

Answer 1

Gas stations get deliverys several times a week.

Answer 2

I used to know a guy that owned a chain of gas stations, and I asked that very question. It's an accounting technique called dollar-cost-averaging. Let's say a delivery of gas costs $3000 today. Tomorrow that same gas delivery would cost $4000. The average of $3000 and $4000 is $3500, so the price of the gas already in the underground tank is increased to reflect the average price. The theory is, they need to charge more for the gas they have already received, but not yet sold, to increase their profit so they can afford the next delivery of gas.

Put another way, if the cost of the gas already in the underground tank is $3000, and they know the next delivery of gas will cost $4000, they wouldn't make any money if they didn't adjust the price. I'm not saying I agree with the practice, just explaining it.

Answer 3

They have telephones--telling them to raise prices.  They are allowed to do this.  LOL

Answer 4

This isn't an answer to your question but some information i have.  My sister heard while she was pre-paying  for gas the guy answered the phone and after a few words finally said "alright".  and hung up.  she paid the pre-pay and went to fill up.  She finished filling and saw the guy come out with a big stick with a suction cup and a bucket of water.  She watched him go over to the sign and start to change the price.  A woman near-by asked " Is the price going up or going down?"  The guy answered  regrettably " It's going up."

NO delivery truck.  Just a phone call.  Talk about cheating the people!

But it's not the gas station making the price.  they only get like 2 cents a gallon.  they make their money on the vendored food inside.  It's that jerk on the phone calling the shots.

The gas stations have no choice, they get black-balled if they charge even a penny more.

I know this doesn't answer the question, but it's more information.

I hope one day we all can find the answer.