An interesting read about why gas prices fluctuate....

[PHHHHTT]

Courtesy of the Straight Dope website (always a good read)

http://www.straightdope.com/columns/read/3357/what-s-with-the-weird-fluctuations-in-gas-prices

[MyBlackBeasts]

Courtesy of the Straight Dope website (always a good read)

http://www.straightdope.com/columns/read/3357/what-s-with-the-weird-fluctuations-in-gas-prices

Wow, a whole lot of mis-information in that article...

Biggest thing is crude price has only a small bearing on pump prices. Pump price is strictly supply/demand. This is why in past we've had some of the lowest pump prices when crude cost was record high.

[sailsmen]

Per Global Petrol Prices
Gasoline prices, liter

Gasoline prices, 04-Sep-2017: The average price of gasoline around the world is 1.08 U.S. Dollar per liter. However, there is substantial difference in these prices among countries. As a general rule, richer countries have higher prices while poorer countries and the countries that produce and export oil have significantly lower prices. One notable exception is the U.S. which is an economically advanced country but has low gas prices. The differences in prices across countries are due to the various taxes and subsidies for gasoline. All countries have access to the same petroleum prices of international markets but then decide to impose different taxes. As a result, the retail price of gasoline is different.

We are about 31st lowest gasoline prices compared to other countries.

[Mr. Man]

Let's say a gas station gets a full load of fuel on Monday, pays a hypothetical $1. per gallon, retails it for a $1.25 per. The gas station doesn't expect a new delivery of fuel til Friday. Some time during Monday Exxon says it's closing a refinery for cleaning in a week. Why then does the price of his and every other gas stations gas go to $1.30 on Tuesday morning. $1.35 on Wednesday. $1.40 on Thursday for gas they've already paid for on Monday? Their price increases shouldn't come for weeks as there is a stock pile of gas waiting in storage tanks that was refined at the cheaper price. Got nothing to do with taxes. Greed, free market call it what you want, we're getting immediately screwed. I realize there are long term reasons why prices move, but this instantaneous immediacy in fuel price movement has no basis in any reality that I can see other than greed. I can't think of another industry that is allowed to do this. Back in the day we used to call it racketeering, but since the govt gets its cut it's called supply and demand. Bull-pucky!

[Bluerauder]

Greed drives these instant price increases. Greed at the refineries, greed at the transportation hubs, and greed at the retail level. The prices start rising even in anticipation of events long before there are any real effects. The industry has an entire army of people who try to connect world events to any excuse to increase prices. Not so much with decreases because those are gradual and are spread over many months. The public buys into any ******** excuse.

[sailsmen]

By ASSOCIATED PRESS |
PUBLISHED: December 12, 2014 at 4:46 am | UPDATED: August 12, 2016 at 5:01 am
NEW YORK — So you think you are finally getting one over on the gas stations as you pay well under $3 a gallon for the first time in four years? Guess again.

Gas stations love low prices too — and not just because customers are nicer when they are paying less.

“We’re in the same shoes as the consumer, the cost of fuel is less for us,” says Kevin Beyer, who owns Performance Fuels, a filling station and convenience store in Smithtown, NY.

That means profits for Beyer and the nation’s 127,000 filling stations are rising.

Before they sell gas to you, station owners buy gas on the wholesale market. When the wholesale price of gasoline falls quickly the difference between the cost of wholesale gasoline (including taxes) and the price at the pump gets wider, boosting profits for stations. The steeper the drop, the better.

“It’s completely antithetical to what people believe,” says Tom Kloza, chief oil analyst at the Oil Price Information Service.

That difference has stretched to 21.7 cents per gallon this year, the highest ever, according to an OPIS analysis of 16,000 U.S. stations. That compares to an average of 17.1 cents over the last five years. On a percentage basis, station profitability is at its highest since 2005. And profits on diesel sales are even higher. “They are off the charts,” Kloza says.

Yes, that means you could be paying even less for gasoline than you are.

But before you cry foul, you should know that after all the ups and downs in a year, gas stations do not make much money from selling gasoline. After credit card fees and other operating costs, net profit for gasoline sales averages 3 cents a gallon, according the National Association of Convenience Stores.

[MyBlackBeasts]

Let's say a gas station gets a full load of fuel on Monday, pays a hypothetical $1. per gallon, retails it for a $1.25 per. The gas station doesn't expect a new delivery of fuel til Friday. Some time during Monday Exxon says it's closing a refinery for cleaning in a week. Why then does the price of his and every other gas stations gas go to $1.30 on Tuesday morning. $1.35 on Wednesday. $1.40 on Thursday for gas they've already paid for on Monday? Their price increases shouldn't come for weeks as there is a stock pile of gas waiting in storage tanks that was refined at the cheaper price. Got nothing to do with taxes. Greed, free market call it what you want, we're getting immediately screwed. I realize there are long term reasons why prices move, but this instantaneous immediacy in fuel price movement has no basis in any reality that I can see other than greed. I can't think of another industry that is allowed to do this. Back in the day we used to call it racketeering, but since the govt gets its cut it's called supply and demand. Bull-pucky!

Gas prices are set at the pump, always have been, always will be. It is the only way to realistically to mage them. The logistics required to manage the other way is impossible. Sample: truck load of gas going to station has 323 gallons in it at price 1, 4500 gals at price 2, 2850 gals in it at price 3, etc. How can this be tracked to the pump? Not possible. So the price is set at the metering point. When prices go down no one complains but the gas in the tank was supplied at the higher cost.

To winge about it or call it "greed" is simplistic emotional response, just due to not understanding how the system works.

Now if you want to rant on a valid subject - multiple grades dispensed from 1 nozzle, that's a righteous complaint! When I pump higher cost Premium in my tank, I'm getting 3+ gallons of mystery gas at Premium cost - the gas left in line from previous pumper between switch-over valve & nozzle. IMO it should be illegal but would require state law to change.

[RubberCtyRauder]

Some stations get gas delivery everyday, even twice a day...depends on location, volume. I have a friend who delivered gas in tanker for a few years. often delivered same station every day. There are not tanks of ready to use gas at tank farms. it has not been "mixed" yet with all additives. gas is made at the local tank farms 24/7.

[88LTDCV351]

I remember on September 11th 2001 in Indiana, a lot of gas stations started shooting their gas prices way up. I also remember a few weeks later, the state attorney general coming on TV and taking action against those stations. Gas prices went down but understandibly they will never be as cheap as they once were. The gas stations were forced to refund some of that money or at least to those who paid by credit card. Cash was still common back then so those of us who paid cash were SOL.