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Old 06-26-2012, 11:18 PM   #99
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Going down here in SW Fl. 3.39 for diesel and 3.09 for reg. gas. The Pilots and Flying J's are still up into the $3.69 range... Makes ya think....
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Old 06-27-2012, 11:04 AM   #100
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Quote:
Originally Posted by fredaevans View Post
It is, but what folks seem to forget is the oil that's being refined today was not pulled out of the ground that morning. There's a considerable 'lag time' between one event and the last.
Raw material cost is probably not the most significant factor in price at the pump. On the other hand, raw material cost may be the most significant factor in wholesale cost of refined material. They are not necessarily linked.

Cost of crude oil directly affects wholesale price of gas, and indirectly affects retail prices at the pump. Market forces (supply/demand and competition) is a more powerful force in retail prices than the current price of crude oil.

For instance, if I owned the only gas station in a 100 mile radius, I could probably charge whatever I wanted for a gallon of gas. And if you pulled up to my station with your needle on 'E', you'd have to pay the price. My cost of the fuel wouldn't matter that much. It would cause my margin to fluctuate, but not necessarily the pump price YOU pay.

Only where competition drives margins to their thinnest will you see retail prices follow wholesale prices. To watch the daily price of oil fluctuate and try to correlate that with price at the pump is an exercize in futility.
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Old 06-27-2012, 01:34 PM   #101
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SOOOOOOO West Coasters, how come we pay almost a dollar a gallon more than east coasters when we have Alaska Crude????

Gas in Seattle is still over $4 per gallon of regular.
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Old 06-27-2012, 01:42 PM   #102
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SOOOOOOO West Coasters, how come we pay almost a dollar a gallon more than east coasters when we have Alaska Crude????

Gas in Seattle is still over $4 per gallon of regular.
Lack of refining capacity and a poor distribution network. Unlike most of the nation which has a large interconnected system of pipes, the west coast is fairly isolated.

Add in high fuel taxes on top of an already inflated base price and you get the west coast proctological exam when ya go to the pump .
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Old 06-27-2012, 02:00 PM   #103
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SOOOOOOO West Coasters, how come we pay almost a dollar a gallon more than east coasters when we have Alaska Crude????
Because the raw material cost is not the biggest factor in price at the pump?
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Old 06-27-2012, 02:18 PM   #104
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Ram material such as oil is not the problem. The problem is that gasoline is refined and sold to the highest bidder. See Gas, other fuels are top U.S. export

Seems U.S. refiners are importing crude oil, refining it and selling the gasoline abroad for the profits. Some how it doesn't seem right but I suppose that's free market capitalism.
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Old 06-27-2012, 02:28 PM   #105
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Ram material such as oil is not the problem. The problem is that gasoline is refined and sold to the highest bidder. See Gas, other fuels are top U.S. export

Seems U.S. refiners are importing crude oil, refining it and selling the gasoline abroad for the profits. Some how it doesn't seem right but I suppose that's free market capitalism.
Bingo!

So, if you had an orange juice factory, and American retailers wanted to give you $1/gal for your orange juice, but Mexican retailers, who can't buy quality domestic orange juice, and have been inundated with a recent strong demand for tequila sunrises, offered you $2/gal, who would you sell it to?
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Old 06-27-2012, 02:36 PM   #106
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I Agree,
but why is gasoline $3.49 a gallon in Oregon and 200 miles away over $4 in Seattle?
Oregon law requires full service attendants which should mean higher prices at the pumps.

Perhaps Seattle's economy may be better then Oregon and can handle higher prices?
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Old 06-27-2012, 03:14 PM   #107
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Well.........can't get permits to build or modernize refineries on the west coast is also a factor, as well as, has been stated a major lack of transport pipeline capacity. AND, of course, that is only part of the story. The oil industry, as any other, is a very complex business and there are many factors in the price of gas and diesel. Fuel prices have not gone up as much, percentage wise as a lot of other things we buy (RVs, milk, bread etc) but are much more visible because of the quantities that we use at one time and the visibility of the industry. All just my opinion.
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Old 06-27-2012, 03:26 PM   #108
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I can think of a few reasons why there is no pipeline on the west coast-earthquakes and mountains.
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Old 06-27-2012, 03:30 PM   #109
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Hmmm... I dunno about that. From what I found it shows average gas price in california in 1993 as $1.22 and now we're at about $4 and white bread in 1993 as .75 and I buy it now for just under $1.
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Old 06-27-2012, 03:45 PM   #110
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The way I look at it is that anything you really need, they will screw you. Gotta have medical treatment=ouch, gotta have prescription drugs=ouch, gotta have fuel for your car or truck or semi=ouch. You see my point. Sure I can go back to a horse and buggy but today it's not practical.

I'm no tree hugger but I do think we should do what we can to protect the environment. It has to be not only a solution but a somewhat economical one too. Until then I like driving my gas guzzling SUV and diesel guzzling RV

Wow, two completely different trains of thought. I shouldn't post these things during happy hour

Oh BTW regular gas was 3.42 today in central NY, diesel $3.95. Third train of thought but on topic.
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Old 06-27-2012, 03:56 PM   #111
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Reg. Gas Hess Station, Whtinsville, MA, $3.31
Premium Xtra Mart Uxbridge, Ma $3.69
Diesel Hess Station, Whitinsville, Ma. $3.64

Being fairly new into RVing I am delighted in the falling gas prices but here's the kicker...since we just purchase our MH 2 weeks ago we found out that Massachusetts is considering taxing the miles that we drive to help pay for the cost of roads!!

June 27th 4:56 p.m.
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Old 06-27-2012, 04:01 PM   #112
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Diesel here is $3.71 a gallon and since that is all we use for all our vehicles I didn't notice the price of gas....sorry.

Just checked the price of gas and found it is $3.37 a gallon.
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