Take a look at what is happening with gasoline prices at the NYMEX.

www.nymex.com

You will see that wholesale prices have fallen to around $2.00/gal after being above $2.17/gal for the last 45 days (and the actual average price over those 45 days is closer to $2.25). Move your mouse over the square with the HU in it to see the graph.

But the retail price of gasoline has not dropped, but instead continues to increase.

But yet our wonderful government types tell us that their is no "price gouging".

WTF?

Before someone jumps in here and starts talking about the time it takes products to move through the supply chain and all of that stuff, we all know that prices move upward overnight if there is any hint at a supply instability or disruption. Shouldn't the prices move downward with the same degree if conditions warrant it?

 

Prices are slowly falling here in CT. I fill at one of the cheapest stations in the state (based on what I see on GasBuddy) and it only recently went from $3.139 to $3.119. This morning I saw stations two cents below that, which is cause for hope. You are certainly not wrong, though. The retail price is always extroardinarily quick to respond to upward market fluctuations, but extremely slow to settle down again when the market value gets back to "normal," whatever that may be. Right before Katrina, it took all of a day for prices to rise something like $0.60 or more and it was forever before the price went down.

It's their market. All we can do is conserve as best we can and try collectively to drive the price down. Milk those hybrids for all they're worth!

 

When I left Michigan on July 28th to start my vacation, my usual station was priced at 2.959. I filled up the next day in W. Va at 2.879. The two weeks I was on Hilton Head Island prices held steady at 2.899. On the way home I filled up in W. Va again (different location) at 2.949. My local station was at 2.939 when I got home Sunday. Last night they had dropped to 2.889.

While I was on HHI, I watched a news story about a local gas station owner who was no longer accepting credit cards for gas purchases. Turns out that because of what the local distribution point charges her for gas, she only makes about 4 or 5 cents per gallon sold. Credit card charges for the merchant are 3%. So on a $3.00 gallon of gas she's paying 9 cents to the credit card company. She could raise her prices, but then she'd be uncompetitive with company owned stores in her area. They get their gas directly from the company at prices significantly below what she gets from the distributor.

Peace,

Martin

 

I live in a county in Virginia that borders WV. Prices in WV are consistently about 10c higher than here in Virginia. I was told by a station owner in WV that his wholesale price for gas is higher than the retail price in Virginia. This is purely due to higher (and much more sensible, IMHO) taxes in WV. Virginia constantly gripes about not having enough money to pay for transportation, yet we have (IIRC) the third lowest gas taxes in the nation. More Republican math. Cut taxes, spend more, it'll all come out in the wash.

B

 

I gassed up last week at 3.09, I see today the same station is selling for 2.89, seems to have decreased, not increased.

 

Well to argue for the government they just recently majorly fined 6 Gas stations here in CT for price Gouging. 5 Cumberland Farms and 1 Texaco were fined for taking advantage of post Katrina to raise gas prices only about .20-.30 cents above average. They warned furthermore that they will be closely watching prices during the current "gas crisis".
Go Government

 

Heh. I just filled up, at $2.88 at the Speedway at 12 and Mound. I hadn't gotten gas since July, and hadn't noticed gas prices had risen and fallen. Guess I lucked out there.

 

Here in the northwest the price of gas is still going up. Diesel is going up much faster, having risen .20 or more in just the last week.

The market is obviously controlled by a small number of large multinationals with several chokepoints (by design) such as refining capacity that can be blamed when things go in a different direction than logic would dictate.

I know it's been discussed here before, but reports like the one that I attached to this post put it all in perspective.

We're getting screwed.

 

Gas prices always react in the same way.....when they go up, they go up immediately. When they go down it is over the course of several weeks.

Whenever there is a threat of violence in the middle east or hurricanes in the gulf, oil prices go up on the speculation....which is fine. What is not fine, in my opinion, is that gasoline prices also immediately jump. To me, that oil has already been purchased and refined at a lower price and should be sold accordingly....but this is a free market...or is it? What is even worse, is that when the problems are resolved and there actually was no issue with the supply, that same gasoline very very gradually decreases in price.

The less gasoline I buy the happier I am.

 

Shoulda honked your horn. I woulda come out and shook your hand.

Peace,

Martin