I've always found this to be odd. When the price of oil drops there is no immediate change in the price of gasoline at the pumps, but when the price of oil increases its takes less than 24hrs to increase at the pumps.
2007-03-12 02:36:28 · 7 answers · asked by Allen C 2 in Cars & Transportation ➔ Other - Cars & Transportation
One word sums it all up: GREED
2007-03-12 03:35:50 · answer #1 · answered by S D Modiano 5 · 0⤊ 0⤋
I hate oil company profits more than anyone, but there's something else to consider. The station owners themselves usually very little to do with it. They are caught in the bind of having to PAY for the next truckload of fuel they get, usually COD or net 10 days. this means when the price of crude takes a jump, they have to act quickly to make their current supply match the price so they can PAY for that next load, and remember, they usually buy several thousand gallons at a time. When crude drops, they still have to recompensate for what they lost on the last load, meaning that EVERY GALLON they bought needs to go out before they can afford to lower the station price.
I do not own a station, but I know guys that do. I even used to HAUL gas for a living, so I found this out on a one-on-one basis.
The problem will not get fixed quickly without strict price controls on the supply end.
2007-03-12 11:58:13 · answer #2 · answered by mrfixit64857 2 · 0⤊ 0⤋
Gasoline? You must be in America but sadly it happens down here in Australia too. The oil companies just offer BS excuses. They claim that it "takes time" for oil stocks to run down at the Higher price before they can reduce the price of fuel - to tall 100% BS! Why does petrol come down to its lowest price midweek even after a huge jump in oil prices and yet even after a huge drop in oil price it goes up at the weekend? Greed!!!! You are being manipulated by the oil companies. You are at their mercy so they can charge whatever they like as long as it is withing the regulations and price structure set by the government. Why can their be a 4c per litre difference in price between service stations on opposite sides of the road or a few metres from each other?
In Australia, the Federal Govt. sets the maximum wholesale price - that's what the oil companies charge the petrol stations, what they sell it for is up to them if they are independent but if they are owned by the oil companies then they are TOLD what their retail price is. its simply a rip-off and the govt. allows it because they get millions in excise revenue and sales tax or GST when it is sold to the public.
2007-03-12 09:59:04 · answer #3 · answered by Traveller 4 · 1⤊ 0⤋
Bush & Cheney likes oil prices to be high so they can make millions from their oil stocks.
They have done enough damage to ensure gas prices will never go under $2/gal ever again.
Under Clinton, gas prices were 79¢/gal in CA 1999-2000.... that's what happens when you elect an oil baron as president. We are paying dearly for it.
2007-03-12 12:15:48 · answer #4 · answered by Anonymous · 0⤊ 1⤋
What don't you understand? When there's obscene profit to be made it's going to happen quickly. We get stroked at the pump, it's a fact.
2007-03-12 09:40:10 · answer #5 · answered by Cybeq 5 · 1⤊ 0⤋
It's the worlds largest scam .... driven by gas station owners.
2007-03-12 09:39:10 · answer #6 · answered by ValleyR 7 · 2⤊ 1⤋
Isn't economics "swell"?
2007-03-12 09:46:39 · answer #7 · answered by ? 3 · 1⤊ 0⤋