apart from greed why cant oil companies set a nationwide price at the pumps?

Answer 1

Each state is different based on taxes.

Answer 2

There are three primary reasons (aside from political and greed) those are:
Primarily the variations in tax rates which are the same from the Federal Govt., but quite different on the State, County, and even city or local levels.
Next is the so-called CAFE formulas which are different blends mandated by local governments. They are supposed to help reduce pollution but all the different formulas run up costs, reduce supplies, and create price variations.
Finally there is the cost of delivery. Prices would, in theory, be lower where the demand is large enough to support the cost of installing pipe-lines. If the supply must be trucked over long distances, the cost is higher.

Answer 3

Greed is the reason the price of oil is so high, well that and hate. If the West withdrew its support of Israel tomorrow the Arabs would GIVE us the oil and no amount of greedy oil barrons could keep the price jacked up as high as it is.

Now the reason there is not a nationwide uniform price is because this is a free market economy. In a place like Los Angeles or NYC where money flows like lava from Mt. Pele, the prices can be stiffer. In depressed rural areas the price has to recede some or them country-folk would just start hi-jacking any fuel truck that stumbled into their reach.

Overall they can only screw us as much as we let them. We (the American Consumer) insist on driving high-power, non-fuel efficient machines that satisfy our vanities, not just our real needs. We are spoiled and selfish, and the oil companies are using that to their advantage.

Answer 4

Having worked for a major oil company for 18 years in distribution I can assure you that the oil companies DO set a rate for their products, however most garages are run by franchisees who have to pay the oil company for the product so must charge more. After all there is no sense in being in business if you do not make a profit. Nothing to do with greed.

There is another factor to be added to the equation and that is the stock market. Brokers drive prices down artificially, buy cheap, sell when they can also make a handsome profit. Who pays? We do.

Answer 5

The price at the pumps isn't decided by the oil companies as such...
First off, there's your basic price per barrel. This varies from day-to-day dependent on how fragile supplies are in key areas. Oil, being a fossil fuel, is already pretty scarce and so as long as demand is high, so will the price.
On top of this, higher than normal wages have to be paid to oil workers in potentially sensitive areas (like Iraq, Nigeria) where the local politics could prove dangerous to their employees (threat of kidnap, bombing etc... no-one gets paid National Minimum Wage for experiencing that! They allegedly make £500 a DAY...).
Divers also get paid massive wages for maintaining undersea pipelines. They need to, as their life insurance premiums are sky-high. Basically, the slightest thing that goes wrong in THEIR job can easily result in their death or that of their colleagues.
Add to this the wages of workers that process the crude oil into the likes of various plastics as well as into petrol - once the oil has become petrol, there are the wages of staff who ship the oil overland in tankers and the like.
Before it gets to the pumps though, there's also the no small matter of governmental (or state) tax on it, & the UK has probably the highest level of levied tax on petrol in the civilised world. I'm sure it's more than 40% tax in the price we pay at the pumps. This levy accounts for over 40p on every litre of petrol we buy!
So you see, while prices before this tax can be justified by the workforce that gets the oil/petrol to the pumps in the first place, your question ought to be directed at the government to make them cut their levies on it.

Answer 6

Our local gas station charges more for its petrol, because it is the only one around. In the same way the petrol stations on motorways charge more, as you the customer does not have a choice on where to go. If there are several choices where to go the competition will keep the prices low, as you will choose the one with the lowest price. The only way all the pumps would give petrol by the same price is if it where owned by one company. In that case there would be nothing to restrict them charging as much as they want, as there is no one else to offer you a better price.

Answer 7

Depends on the TAX POLICY of different state.
TAX is higher or lower depends upon , the rate of consumption ,and for what purpose oil is used.

If the rate of consumption is higher and the oil is used simply for racing that is for pleasure ,then the tax will be obviously higher.
In Countries like INDIA, the cost of petrol after it is refined,comes to Rs.30 .
But ,Government has fixed the price up to Rs.50 that is 1$.

Answer 8

There are too many variables to set a national uniform price. Like other merchandise, the final sale price is decided not only by the cost of the gasoline itself, but also the different rents paid at different places, the different delivery costs, among many other variables.

Answer 9

Due to free market economy. As long as the company is not price gouging and is offering fair and competitive pricing then all we can do is continue to gripe about the rising cost of fuel.

Answer 10

they do no longer want excuses. marketplace forces set the fee, no longer in straight forward terms the agencies. Our call for for power additionally contraptions the fee. No organization sells any provider or product for an extremely low fee than the marketplace will undergo. Why might desire to gas be any distinctive?

Answer 11

Yes talk to your state government they are just as big of a problem. We are so reliant on oil that its crazy. maybe if the price goes up a little more we will finally find alternatives.