price per barrel Vs. Price per gallon

[Mickey1992]

Yes and in 2014 Exxon/Mobil's markup was 40 Billion dollars, that 40 Billion after all the expense to find, drill, transport , refine and distribution. 

Yes, on 400+ billion in sales.  Don't forget than Exxon/Mobil pays 30+ billion a year in income taxes as well.

[RotBaron]

 

waste of time

[guncrasher]

to be honest, regardless of why the price of gas is down.  I dont really care, i am just happy I can fill my tank up with 20 bucks less than 2 weeks ago.  enjoy while you can ladies.  it's gonna go up as soon as they feel like it.  price of gas doesnt make sense.  I have about 15 or 20 arco stations within 15 miles.  they all have different prices.

word of advise, never buy gas right next to a freeway or highway or whatever they call it in your state.  they have the highest prices.


semp

[CAP1]

Exactly.  Oil is the raw material.  Even if the cost of the raw material goes down, the cost of processing and transporting does not change.  The cost of oil makes of about 60% of the cost of gas.  The rest is distribution, refining, taxes, and markup.

 aaahhhh yes, but those costs both DO go down. they both involve the burning of so-called fossil fuels. if the cost of the fuel drops, then the cost of the production/transportation goes down.

[Meatwad]

One of the grocery chains in this area has a "rewards" program whereby you build up cash towrds a 20 gallon fuel purchase. Used mine yesterday and the per gallon price came out to being .36 cents per gallon. I know its a gimmick, but still was nice to get 20 gallons for roughly 7.50....

Krogers?

I see that here, but I couldnt get myself to spend that much there just to save a few cents a gallon on gas where I can get the same food cheaper at another store

[MrKrabs]

Today's fun fact... My store profits 18 cents a gallon sold... If the cost of that fuel goes down, my price goes down as long as I get 18 cents a gallon...

[Mickey1992]

Today's fun fact... My store profits 18 cents a gallon sold... If the cost of that fuel goes down, my price goes down as long as I get 18 cents a gallon...

And am I correct that you do not know what you will pay for the next truckload until it arrives to unload?

[guncrasher]

Today's fun fact... My store profits 18 cents a gallon sold... If the cost of that fuel goes down, my price goes down as long as I get 18 cents a gallon...

funner fact.  I have 4 arco gas stations within 4 miles of my house, they all have different prices.  same for chevron, shell...


semp

[mechanic]

I'm sorry, was anybody expecting the capitalist elite to be in any way fair or generous?

[mbailey]

I smile at the pump now.  Owning and having to fill 2 4dr 2500 series Silverados can be painful at times. 

[CAP1]

Today's fun fact... My store profits 18 cents a gallon sold... If the cost of that fuel goes down, my price goes down as long as I get 18 cents a gallon...

guy i used to work for was struggling to sell his gas(this is about 10 years ago) and make 5 cents on a gallon(after all of his expenses etc)

[guncrasher]

I'm sorry, was anybody expecting the capitalist elite to be in any way fair or generous?

why not, I am quite generous when I buy their gas at their own price  .


semp

[MrKrabs]

And am I correct that you do not know what you will pay for the next truckload until it arrives to unload?

Wrong - We are "commissioned" to sell the fuel - not buy it to sell ourselves... They dump the fuel - we sell it for them - we make the commission... And that amount per gallon is fixed and re-negotiated every year...

They set the "recommended" price - not us - it's based completely on supply and demand - this is why we do market maps for them as well.

[DmonSlyr]

Ask yourself. Why do they have to lower the price?

Their main expneses:
The inflation rate is 1.3%. Its a factor but not a big one. Tax/terrif .09. Packaging 34% gas station sales 18%, railroad,shipping 15%, mining, 25%. The other ~7-10% is gifts (cough) lobbying (cough).

They know what people will spend. Trust me they want to raise it back to $4.00

The reason they are lowering prices is to compete with the company(group) who is attempting to undercut them, unfortunately in a very unethical and immoral way.

So by cutting these prices they will minimize the other groups profits/gains in the market. OPEC has the power to do that/money to fool around. So it puts the other company who has very similar goods in a very competive situation. It is strategy by large companies to dominate or at least pull equal sales by a growing company in the market.  

Fuel is all the same. So OPEC has to bully and match the compition from a business perspective, to keep the other group from gaining market share, until the bad group is formitably defeated for cheating the system and being evil.

[DaCoon]

I smile at the pump now.  Owning and having to fill 2 4dr 2500 series Silverados can be painful at times. 

I only have one 2500 in 2wd but, my 19yr old daughter is who drives it while I'm on the road.  So...still painful