Diesel Prices

[gjbales]

Hello all fellow RVers. I know diesel prices have been talked about on and off for quite a while now and I'm pretty frustrated at the latest events here locally. I know the media has said that diesel prices are, for the most part, driven by demand. That may be part of the issue, as there are a ton of 18-wheelers on the highways. However, I am 100% certain now that greed has played a major role. We just recently had a new QuickTrip (QT) convenience store / truck stop open within the last two weeks and immediately their diesel price was posted at $3.86 / gallon. It is located on the north side of an interchange on I-20 in West Monroe, LA. On the south side of the interchange, there is a Pilot that has consistently posted diesel prices in the $5.00 / gallon range. Now, since QT has opened, Pilot lowered their price by almost $.50 / gallon and directly down the street from QT there is a convenience store that was pricing diesel at nearly $5.00 / gallon and now they have lowered theirs to $3.89 / gallon. Even Walmart, which is located within 1/2 mile of QT, lowered theirs from almost $4.75 / gallon to $3.99 / gallon because of QT. Now, you can't tell me they are now all losing money because of QT???? Sounds to me that there was a lot of money-grabbing greed going on. Welcome to the neighborhood QT. Glad you are here.

[USMCRET]

Competition is good.

[Flyer15015]

We have 4 stations here in Buena Vista.
All have gas @ $3.59 and diesel @ $5.05.
I think all the owners have breakfast together and decide.

Mike in Colorado

[MemByTheMile]

My observations over a few decades of buying fuel - whenever a new station opens they will open with prices much lower than the competitors in order acquire a customer base. The competitors will usually follow suit, and over the next few weeks and months the pricing will go back to normal amounts that are in line with competitors who are miles away.

Let us know what prices do in February.

[IndyJim]

I would respectfully submit that correlation is not causation.

-IndyJim

[jacwjames]

I should be so lucky to buy diesel for that price. I live in E TN Walmart ~4 miles away has it for $4.95, Sam's ~28 miles away $4.69 but doesn't pay for me to drive that far to get it. Big truck stops on the interstate are ~$4.99.


FWIW
Exon board of directors just voted to give CEO a pay raise to ~$1.8M per year and I am sure there are incentives that will push him to +3M.

[NLOVNIT]

Around OH, diesel is still nearly $6/gal. Yet gasoline is dropping like a rock...currently around $3.29/gal. Word on the street is gasoline will be under $3/gal by the end of the month. It's already at that at places like Get Go with their member's discount. That's just a crazy difference!

[RS ODonnell]

Originally Posted by NLOVNIT

Around OH, diesel is still nearly $6/gal. Yet gasoline is dropping like a rock...currently around $3.29/gal. Word on the street is gasoline will be under $3/gal by the end of the month. It's already at that at places like Get Go with their member's discount. That's just a crazy difference!

Same here in SoCal. It was $5.97 when we got here a month ago. Just today saw where it's now $5.77.

We're the "Pollyanna type" and happy about the $.20 drop.

[ponytl]

Originally Posted by jacwjames

I should be so lucky to buy diesel for that price. I live in E TN Walmart ~4 miles away has it for $4.95, Sam's ~28 miles away $4.69 but doesn't pay for me to drive that far to get it. Big truck stops on the interstate are ~$4.99.


FWIW
Exon board of directors just voted to give CEO a pay raise to ~$1.8M per year and I am sure there are incentives that will push him to +3M.

I'm in west tn and Gas can be had for $2.70gal and diesel for $4.49 but what does that have to do with what Exxon pays it's CEO? and why would you care?

[Nwcid]

While not excusing or justifying pricing, most truckers are not paying the listed pump price on the sign.

Most have some kind of fleet card or if they are a large enough company, a logistics person that the gets the best rates possible.


Also what you said is nothing new. There is a station I passed for 20 years on my way to work. They are just off the highway and there is another station about a mile away on the next exit. This is in a very rural area and equal in terms of access. The one station has always been anywhere between $0.40-$1/ gallon more for fuel. Some how they are still in business........

[Gooma]

But read somewhere that if the oil companies quit paying all of their top execs for a year they could lower the price af a gallon of gas by $0.01. The oil companies sell many millions of gallons of gas and diesel each year.
It's fun to bash the exobitant pay of execs but it has very little to do with the price at the pump.
If you have an IRA account, oil profits are a good thing.

[MtCamper]

Todays paper has a shortstop who who just signed an 11 year contract for $300 million. I realize not everyone can be a major league shortstop, but then not everyone can be the CEO of Exxon. $3 million a year sounds pretty reasonable to me.

[Shall36]

There’s obviously some margin in fuel prices but the low price at QT is not necessarily viable in the long term. Refining one barrel of oil produces relatively fixed amounts of gas, diesel, kerosene, and derivatives. It is very true that you can a different supply/demand ratio for diesel than for gas. Refineries can tweak things to produce a little more kerosene (base stock for jet fuel) or a little more diesel. Air travel has been through the roof. Getting the price of a barrel of oil down would be helpful, but we’ll see it go up when the release from the strategic reserves slows as the reserve becomes depleted.

[tmw188]

Originally Posted by Flyer15015

We have 4 stations here in Buena Vista.

All have gas @ $3.59 and diesel @ $5.05.

I think all the owners have breakfast together and decide.



Mike in Colorado

Wait a minute I thought there was just one guy that was always to blame