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  • Ron Whitfield
    replied
    Re: Gas Prices

    Originally posted by craigwatanabe View Post
    Who would have ever thought about getting so giddy at $4.42 per gallon!
    Some say it's a main reason for higher prices, pretty soon you may be cheering $5 per. Support your National scam!

    Leave a comment:


  • craigwatanabe
    replied
    Re: Gas Prices

    Hilo is at $4.57 per gallon. With my Kamaaina card I was able to slash 15-cents off per gallon, every Sunday. Wow, who would have ever thought about getting so giddy at $4.42 per gallon!

    Leave a comment:


  • matapule
    replied
    Re: Gas Prices

    Originally posted by joshuatree View Post
    I don't know if you use Costco gas
    I live in Cabo San Lucas, Mexico. We have Costco down the street, but they are not allowed to sell gas anywhere in Mexico. All the oil industry and service stations are owned by PEMEX, the nationalized oil company. I am currently paying $2.80 per gallon for 87 octane. My hybrid SUV gets an average of 35 mpg. I'm not complaing here.

    Costco, on the other hand, probably sells gas at break even, it brings in the membership fees and shoppers.
    Totally agree. Like their hotdogs (same price in Mexico as US) gasoline is a loss leader.

    Leave a comment:


  • joshuatree
    replied
    Re: Gas Prices

    Originally posted by matapule View Post
    The answer is no, they aren't affected. Service stations add on a certain percentage or cents per gallon to all their wholesale gasoline purchases. Their profit remains the same or goes up when the price of crude changes.
    This is only partially true. When gas prices go up, customers become more price sensitive. So when you have gas stations clustered together at a local intersection, it becomes a game of bluff on which station raises their price first. Even if the difference is a penny, the customer will go there. So it actually squeezes their profit margin as they take on higher wholesale prices and try to keep the retail price the same as long as they can, hoping to make it up with sales of goods in the convenience mart. So when oil prices do go down, they then hang on to the high prices as long as possible to try to make the most out of it. Of course, this scenario doesn't apply to all stations, especially for ones with no competition for blocks around.

    I don't know if you use Costco gas but if you do, ever notice when gas prices spike, the price difference between Costco and outside stations narrow significantly. This tends to support the idea that outside stations are trying to hold onto a given price as long as possible, eating into their margins. Costco, on the other hand, probably sells gas at break even, it brings in the membership fees and shoppers.

    Leave a comment:


  • Zovo
    replied
    Re: Gas Prices

    Originally posted by matapule View Post
    The Headline in USA Today: Oil drops 15% in a week.

    Well I guess that means we should see a 50+ cents a gallon reduction in gasoline prices tomorrow at the pump! I'm waiting.......waiting.......waiting. Drums fingers on table. Lah-de-dah-de-dah-dah-dah. Heeeeello oil companies, anyone at home? I hear crickets!

    End the tax breaks for the oil industry!

    Any minute now, for sure.

    Leave a comment:


  • matapule
    replied
    Re: Gas Prices

    The Headline in USA Today: Oil drops 15% in a week.

    Well I guess that means we should see a 50+ cents a gallon reduction in gasoline prices tomorrow at the pump! I'm waiting.......waiting.......waiting. Drums fingers on table. Lah-de-dah-de-dah-dah-dah. Heeeeello oil companies, anyone at home? I hear crickets!

    End the tax breaks for the oil industry!

    Leave a comment:


  • tutusue
    replied
    Re: Gas Prices

    Thx for the info, Matapule. I have an accountant for a reason!

    Leave a comment:


  • matapule
    replied
    Re: Gas Prices

    Originally posted by tutusue View Post
    Aren't the station owners impacted by crude prices as much as the customers? It seems to me that the oil companies are the only ones making money and that the station owners are affected as much, if not more, as their customers.
    The answer is no, they aren't affected. Service stations add on a certain percentage or cents per gallon to all their wholesale gasoline purchases. Their profit remains the same or goes up when the price of crude changes.

    Leave a comment:


  • matapule
    replied
    Re: Gas Prices

    Originally posted by tutusue View Post
    I have a curiosity question. When crude goes down isn't there still gas left in the underground tanks at the gas station? Gas that was purchased by the independent station owner at a previously higher price?

    I suppose the reverse is true, too. When crude goes up, the station owners still have gas purchased at the lower price.
    .
    More truth than poetry in what you say Tutu. I don't know if you are familiar with the LIFO (Last In First Out), FIFO (First In First Out) accounting principles. At the service stations they tend to use LIFO principles when crude goes up (the last gas delivery at the higher price is what they charge for what is remaining in the underground tank). When crude goes down, they use FIFO principles (the last remaining amount in the underground tank at the higher price is what is charged for the whole tank even though recent deliveries have been at the lower price).

    This concept of mixing LIFO/FIFO accounting is not allowed when filling out IRS tax returns. It is a big NO-NO. You are required to use one or the other and stick with it during your accounting period.

    Tutu, welcome to the world of unregulated Capitalism.

    Repeal the tax breaks for the oil industry! Republicans and some Democrats are opposed to that.

    Leave a comment:


  • tutusue
    replied
    Re: Gas Prices

    I have a curiosity question. When crude goes down isn't there still gas left in the underground tanks at the gas station? Gas that was purchased by the independent station owner at a previously higher price?

    I suppose the reverse is true, too. When crude goes up, the station owners still have gas purchased at the lower price.

    Aren't the station owners impacted by crude prices as much as the customers? It seems to me that the oil companies are the only ones making money and that the station owners are affected as much, if not more, as their customers.

    Leave a comment:


  • matapule
    replied
    Re: Gas Prices

    Originally posted by Kimo View Post
    would like to see them plummet at MY corner station.

    You know, when crude goes up, gas prices rise over night. When crude goes down, it takes two weeks for the market to adjust. I don't have to tell you what is going on here.

    Repeal the tax breaks for the oil industry!

    Leave a comment:


  • Kimo
    replied
    Re: Gas Prices

    Headline in today's (May 5) New York Times:

    Crude Oil Falls Below $100 a Barrel

    .. . and the story goes on the talk about "Prices plummeted today . . ." -

    would like to see them plummet at MY corner station.

    Leave a comment:


  • LikaNui
    replied
    Re: Gas Prices

    Cheap gas in Hana hit $6 per gallon today. Here it is: http://www.staradvertiser.com/news/b...120891514.html
    It's $4.47 here in Kaneohe.

    Leave a comment:


  • Zovo
    replied
    Re: Gas Prices

    All politics aside, these gas prices gotta come down.
    It's making it impossible to find a good seat on The Bus. :P
    All these new people forcing the regulars to stand in the aisles; it's a travesty.

    Leave a comment:


  • Ron Whitfield
    replied
    Re: Gas Prices

    Originally posted by Kalalau View Post
    Brazil became energy independent by brewing alcohol from sugar cane.
    Nooooooooooooo, we can't go back to the good old days when all our engines ran so well and clean before the prohibition scam, we need to be hamstrung by corrupt corporations and their subserviant Government while polluting our asses off and marching off to BS wars in oil rich countries as our economy tanks because of it again. It's the American way!
    Last edited by Ron Whitfield; April 26, 2011, 09:31 AM.

    Leave a comment:

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