crazy gas prices again...

[ManFromPorlock]

If you don't set prices based on future replacement costs, you're out of business as soon as you're out of stock. However, if the replacement costs for gas don't increase as predicted, we should see the excess profit returned to consumers in the form of lower prices as the oil companies bid for market share. If we don't see this, it's evidence of price-fixing and we can take umbrage then.

 

[VinylHanger]

I guess the sad thing is that we are so used to getting screwed that this was believable and people are actually conditioned now to think $1.04/l is a bargain. Strange times we are living in...

The other day I hit a station I go to when I head up the freeway. I came over the hill and saw it was 2.78 a gallon. I about did a happy dance. Then I realized it was 2.78 a gallon. I then felt like a dumbass for being so easily brainwashed. My wife even said as much, as she looked at me like the dumbass I was looking like. It was about 2.83 the day before, yeah, it's a 5 cent difference, but 5 cents on that price really doesn't make any difference when your only buying 15 bucks in gas.

 

[Andyman]

If you don't set prices based on future replacement costs, you're out of business as soon as you're out of stock.

What?????????????

If you're out of stock, you ARE out of business!

I'm talking about the guys running the corner stations, not the refineries. I've been in retail 20 years and the companies I've worked for price on net landed cost, not replacement cost.
If these guys are selling gas for $3.47 when they paid $2.35 or so a gallon for it, they deserve to be drawn and quartered. My understanding it that the stations make very little on gas itself; a few cents/gal, almost a loss leader, and make the money on the stuff they sell inside, plus repair services if they offer it.

 

[ManFromPorlock]

What????????????? If you're out of stock, you ARE out of business!

That's why you sell your old stock at a price that brings in enough money to replace it, regardless of what the old stock cost in the first place. So you don't run out.

 

[alexkerhead]

Still only $2.55 a galon down here.

 

[Andyman]

That's why you sell your old stock at a price that brings in enough money to replace it, regardless of what the old stock cost in the first place. So you don't run out.

Grant it that makes sense, but most vendors give us terms so we can sell based on actual cost. In fact, we like to sell before the terms are due and invest the proceeds in order to actually make more than just the mark up.

I don't think gas stations operate COD with their suppliers do they?

 

[ProAc_Fan]

I can't speak for the US but up here the oil companies OWN probably 95% of the gas stations and would withhold fuel from independants who undercut their pricing. The fact that the gas is already delivered makes no difference to them. The market price is the market price.

Mike

 

[2DualsNotEnough]

The only good Im seeing out of all this is that a lot of the car companies are adding hybrid vehicles to their slate of future releases.The govt has wanted them to do this for years,but all it took was one simple thing-public demand.
Jimmy

 

[ProAc_Fan]

Turns out someone mis-read a sign (assuming $2.20/l instead of $1.22/l), called a radio station and chaos ensued.

Actually Bill there was a Pioneer station on Hwy 8 at $2.15/L on Wednesday. Other regions of Ontario were also ripped off to the tune of $1.70/L or more in a preemptive move regarding Rita. But hey the Federal Competition Commitee tells us there is no price fixing so it must be true. :thmbsp: :cry:

Mike

 

[hpsenicka]

It seems some of the high prices were real.. not just rumours after all, however it appears that in most cases the price gouging appears to be limited to a few renegade dealers, and smaller independents.

For the most part, it appears that the large national companies held the line on price increases.

FYI... typical prices here in Milton are still hovering around 1.05/L today.

 

[Billfort]

I read about 1 or 2 assholes that took it upon themselves to gouge, they apparently are no longer in the business.

I'm not saying it didn't happen but all through this fiasco I never passed 1 station that went over $1.20/L and I drive over 60km into work and pass over 10 stations on the way.

Now if I could just understand WHY gas is $1.05/L...

 

[merrylander]

According to an article in the Washington Post the retaillers only got a modest increase, about the inflation rate. The biggest jump, over 200% was from the refiners with a smaller increase from the wells. Now I know that Greenspan is worried about inflation, but I don't think it approaches 200%.

Rob