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hamguy · 08-27-2007, 05:28 AM

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by RustyJC:
<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by Homer:
The legislation that forced Mom & Pop gas stations to replace their underground tanks with new ones, whether they needed them or not. They couldn't afford the expense and went out of business. Conglomerates took over complete control of the retail market. </div></BLOCKQUOTE>
Underground tank replacement was an environmental issue. Leaking tanks were contaminating ground water. I don't think continuing that scenario would have been in anyone's best interests, right?

Rusty </div></BLOCKQUOTE>

This doesn't change the fact that it cost billions too comply. As was previously stated, the demand for gas/oil products has more than doubled over the last few years.

BTW, I just paid $4.69/gal in Dawson Creek, BC. That is double what it costs in Phoenix. Are Canadian oil Cos. gouging? You don't hear those charges here. Also, we will be passing oil fields with enough oil tar to supply the North American Continent for over 100 years in the next week.

RustyJC · 08-27-2007, 05:36 AM

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by hamguy:
Also, we will be passing oil fields with enough oil tar to supply the North American Continent for over 100 years in the next week. </div></BLOCKQUOTE>
Yes, and there's a lot of oil shale in the U.S. Rockies as well as coal that can be converted to syncrude. As I said, the days of cheap oil are running out. All of these sources listed above are only economically justifiable at higher-than-historical price levels.

Rusty

RustyJC · 08-27-2007, 05:39 AM

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by hamguy:
BTW, I just paid $4.69/gal in Dawson Creek, BC. That is double what it costs in Phoenix. Are Canadian oil Cos. gouging? </div></BLOCKQUOTE>
After taking the $CDN versus $US into account and the fact that Imperial (Canadian) gallons are larger than ours, it may be more likely that the governments involved have more to do with the price differential than the oil companies. What's the Canadian fuel tax burden (national and provincial) per gallon?

Rusty

hamguy · 08-27-2007, 06:00 AM

"After taking the $CDN versus $US into account and the fact that Imperial (Canadian) gallons are larger than ours, it may be more likely that the governments involved have more to do with the price differential than the oil companies. What's the Canadian fuel tax burden (national and provincial) per gallon?"

Rusty, a check of the current exchange rate shows virtual parity and stores up here mostly charge $1 US for 1$ CDN.

Also, I am intelligent to make the conversion from liters (the unit of sale of petrol (gasoline to those in Rio Linda)) to gallons [3.785l/gal].

RustyJC · 08-27-2007, 06:17 AM

No insult was intended, and I'm sorry if one was taken. If the Canadian fuel was priced in $CDN/Imperial gallon (you didn't say), then conversion from Imperial to U.S. gallons would be required.

Rusty

Izzyblueye · 08-27-2007, 08:22 AM

Rusty--Was it an environmental issue that needed complete compliance or was it a tool to get rid of Mom & Pop? It certainly worked, so much for private enterprise and entrepreneurial minded little guys.
Did they outlaw Agricultural chemicals that really affect ground water as well as rivers and streams. Nope they made them stronger.
We are beating a dead horse here, it is done and Mom & Pop now work for the oil companies for minimum wage in their convenience stores.

skipwil · 08-27-2007, 03:50 PM

hi: Gas here in east tn. went up .20/gal when the hurricane was in jamacia. i was LUCKY to fill the mh at 2.46. it's back now at 2.54.
labor day will probably see a rise. i try to stay nearly full so i can coast thru the price wave. does anyone know what happened to the camping world forum? seems to have disapeared.

Be safe - think positive - people will wonder what you'r taking...

**Petro** · 08-27-2007, 03:56 PM

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by Homer:
The legislation that forced Mom & Pop gas stations to replace their underground tanks with new ones, whether they needed them or not. They couldn't afford the expense and went out of business. Conglomerates took over complete control of the retail market. Special tax incentives today for the import of crude. </div></BLOCKQUOTE>

Homer;
I don't know about your part of the country but in Wis a high percentage of retail fuel outlets are still family owned. As far as replacing tanks are concerned, it was necessary as many were leaking and polluting the ground water. I have owned my own station for over 40 years. Many of us fly major brand flags but only sign supply contracts with the major suppliers. I fly the BP flag but it is my station and my business.

Don

Jestme13 · 08-27-2007, 04:14 PM

just be glad you have the money to fill your tanks whatever the price, most ppl around the world couldnt dream of doing what we do

Izzyblueye · 08-28-2007, 12:39 AM

No there are no privately owned fuel stations anywhere in this area. They are owned by the oil companies or a large consortium who buy and operate the convenience stores. The oil companies set the prices on fuel via a phone call every morning from the distributor. If an oil company decides to close any given station, that's it, it is closed.
Don do you have any control over fuel prices in your privately owned station?

**Petro** · 08-28-2007, 07:07 AM

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by Homer:
Don do you have any control over fuel prices in your privately owned station? </div></BLOCKQUOTE>

Homer;
We set our own prices by doing a price survey each morning of prices in our trade area. We than decide what to charge. Wis has a law that retail prices can only be changed by a retailer once every 24 hours. That means up or down. We want to be competitive not higher nor lower than our competition. We never make phone calls as that could make the appearance of price fixing. We sometimes sell gasoline for less than cost and other times me make a healthy margin. Hopefully we hope the average will allow us a profit to be able to stay in business. Most people forget that the credit card companies take a big bit out of our profits. Where do you think they get the money to give back rebates? 3% of $3.00 = 9 cents. The cash customers are subsidizing the credit card customers and I would not be surprised to see the cash discount program make a come back. The credit price will be built in and the cash customer will receive his discount up front.

Don

Izzyblueye · 08-28-2007, 07:38 AM

PETRO: Don; thanks for your response and forthright explanation of your business model. I also agree completely, CASH customers should get the discount, even though I use a credit card for convenience and the discount. May you continue to make a profit and stay in business. This country was built on the free enterprise system, lets keep it that way.

hamguy · 08-29-2007, 01:28 PM

It must break the hearts of those that ascribe ALL pricing to BIG BUSINESS. Thanls for the straighforward explanation of how a part of the retail gasoline biz works.

RedneckExpress · 08-29-2007, 01:53 PM

It also gives you a better background and understanding why big retailers, like Safeway, Kroger/Fred Meyers, etc... Can sell gas for less than the stations around them. Most times, the gas is being sold at cost, with the expense being made up by in-store sales.