Gas Prices???

[Gonna Smoke]

Filled up my gas truck yesterday for $2.64/gal. Road diesel is around $2.79/gal. Here's a pic I took a couple of weeks ago. I haven't seen diesel cheaper than gas in a long time, but that didn't last long...

 

[sandyut]

Gas prices here have not moved a penny. Barrel of oil running ~$61. What gives!

 

[jcam222]

Gas prices here have not moved a penny. Barrel of oil running ~$61. What gives!

I read there I usually a 2-3 month lag on oil vs gas prices. Not sure though

 

[Smokin Okie]

Gas prices here have not moved a penny. Barrel of oil running ~$61. What gives!

This is one flaw in all markets, not just gasoline. Prices fall slower than they rise.

As for gasoline, its all on the retailers. They have no incentive to voluntarily lower their price until they begin to see a drop in sales.

And the blame goes to consumers who mostly don't price shop. They just go to the same station to get gas that they always do and don't pay a lot of attention to prices.

Price shopping would reward stations who are first to lower their price with higher sales and provide incentive for other stations to follow.

This happens in everything.

 

[mneeley490]

This is one flaw in all markets, not just gasoline. Prices fall slower than they rise.

As for gasoline, its all on the retailers. They have no incentive to voluntarily lower their price until they begin to see a drop in sales.

And the blame goes to consumers who mostly don't price shop. They just go to the same station to get gas that they always do and don't pay a lot of attention to prices.

Price shopping would reward stations who are first to lower their price with higher sales and provide incentive for other stations to follow.

This happens in everything.

I've seen this before. When crude prices are high, they jack up gas prices instantly, and say it's Supply & Demand.
When crude prices are low, they say the cheaper gas hasn't made it's way to them yet, and still keep the prices high.

 

[Brokenhandle]

Years ago when I worked off the farm, I stopped at my normal gas station to get gas, had to wait in line for what seemed like forever... when I asked the cashier what gives for all the cars she said all the other gas stations had raised their gas prices 1 cent and the station I was at wasn't gonna raise it till the next day. For the less than 20 cents savings I should have gone to a different station with no lines.

Ryan

 

[Smokin Okie]

I've seen this before. When crude prices are high, they jack up gas prices instantly, and say it's Supply & Demand.
When crude prices are low, they say the cheaper gas hasn't made it's way to them yet, and still keep the prices high.

Not really. When prices rise, the wholesale price goes up, and the retailer has to mark up his price. They have to pass the price increase immediately, or lose money.

No one in the process " jacks up " the price.

The refiner sits in the middle between two free markets, one for oil and the other for refined products, and the price in markets on both ends is established by supply/demand.

As I said, when the price of the refined product falls, it gets passed to the retailer but he has no incentive to lower his price. As long as the sales volume remains the same, he's not gonna move his price down.

Each retailer will react to a competitor dropping their price, or else they lose sales a volume.

And the consumer has to price shop. Use an app like Gas Buddy and drive out of their way to get the lowest price.

 

[dls1]

I use premium in our Mustang, and only use Shell. I filled up yesterday & it was below $4 a gallon. First time in a while it has been that low.
Al

Like you, we only run Shell Premium in both of our cars (Audi's) an RS7P and an RS6 Avant. Filled them both yesterday @ $4.89/gallon.

 

[fxsales1959]

How much do you pay per gallon?

Minneapolis, MN = $3.60/gallon

How much do you pay per gallon?

Minneapolis, MN = $3.60/gallon

$2.93 this morning for Marathon top tier. Sh*t gas a little cheaper.

 

[Brokenhandle]

Just realized this thread started in 2011!

Ryan

 

[Smokin Okie]

Just realized this thread started in 2011!

Ryan

Lots of water under the bridge

 

[912smoker]

Used my .50 off yesterday and dropped it to $2.25 a gallon. Filled up 2 vehicles!

Keith