Pilgrim said:
A girl was running from pump to pump changing the prices. I asked why didn't she wait until they closed, why do it when there are about 20 cars at every pump. She said they change it days and nights and that this was the second time that day that she had changed the prices.
The same gas is in the tanks all this time.
It's more than the mfg's that are making a killing here.
On the other hand what seems devious up front might be some sort of
"buffering" effort on the part of the gas station. EG, it may allow them
to stretch out offering a "mid point" price to the customers if they increase
the price as soon as they know what the new prices are going to be...
The gas stations sometimes do gouge, but most of them are within a
few cents of one another.
Another thing to keep in mind.... the places with the cheapest gas will
often sell the most gas... this means whatever they have in their tank is
going to go faster... and thus the cheapest stations are going to be the
ones to get the newest shipment of gas at the higher price.... so often
times youll see the cheapo stations price gap being closed for a few days
or a week until the expensive stations tanks get depleted.
The problem with fuel is we're slaves to it. It's a -need- based
product. It's not like housing, cars, etc, where we can just settle for
whatever it is that we have, or shop in different markets, etc.... gas is
this commodity type thing where the market is pretty much
normalized, at least on this contintent. Some places have drastically
higher prices than others, but this is typically due to taxes or other
sorts of communism. (eg California's gas policy).
It's also HARD for us to reduce demand. All we can do is reduce
"optional" driving, shipping, etc. Maybe change cars, etc.. but
even that only will double the mileage, at best, for most
people. Then there are trucks and airplanes- two categories of
vehicles which reducing consumption by a noticeable amount is a lot
more difficult to pull off.
It's one of the few things in life where theres not a whole lot of
choice. It's not as if there are 5 different fuels one can easily run
their car off of. The only real "choice" we have in the matter is
to move closer to where we work and buy crap, and that has its own
set of costs. (In my case, I commute 90 miles a day. If I moved
closer, gas would be less, but I'd be paying $400 more a month for
rent... which far outstrips the cost of even paying $4 a gallon for
gasoline.
To top this off, even in the face of domestic reductions in consumption,
that might not be enough.... there are a few billion chinese folks who are
getting sick of riding their bicycles, and are probably going to be riding
around in cars running on government subsidized/refined/untaxed gasoline.
It's not just the US anymore that are going to be gas pigs... China and
India are bringing up the rear. This will increase global oil demand over
time.
I think the -biggest- single factor right now with US gas prices is the
fact that we have a severe lack of refining capacity. The last refinery
in the US was built in like.... 1978? This causes price spikes all on
its own independent of whatever the price of crrude is. Katrina proved
this in a big way.... a refinery was offline, prices soared temporarily until
it started producing product again.
-Mike