T Nation

CA Gas Prices Soar Overnight


#1

Thank you Dems, thank you for passing the Global Warming Final Solutions Act of 2006, where now we must get 1/3 of ALL energy resources from "green" sources.

Sure, you blame a fire at a very small oil refinery, but hey, these Fuck-fornians are so stupid, they will believe anything you feed them.

This is what happens when you hand out welfare like candy, and elect people who thought we would be living in the Jetsons era by now...


#2

Ouch, why the different prices when using plastic instead of cash? I thought 3.45 was bad.


#3

I think the subsidies we give the oil companies ought to be rescinded . And I also think you are blaming the wrong people . If Reagan would not have undid what Carter did we would be 30 years down the road with an energy program.


#4

HMMMMMM


#5

[quote]jre67t wrote:
Ouch, why the different prices when using plastic instead of cash? I thought 3.45 was bad.[/quote]

Well, because of a couple things. As Pitt is unaware of apparently, the people that own the gas stations are Mom’s and Pop’s. They have to buy the fuel from distributors, who buy their fuel from other bigger distributors and refiners, etc.

Sorta like a drug dealer. Follow me?

Okay, so now these dudes and ladies who own the station have 3-5 days to pay their distributor because the distributor has 7 days to pay his supplier. When times are booming, people are lax on the payment terms and you can be a few days late. Now, during the shit economic times we have now, people are hard line on the time to pay.

Cash goes right in the nightly deposit, credit card companies send cash a couple days later.

That is reason #1.

Reason #2 is the credit card companies charge the retailer (dude selling gas) 2-3% of every dollar as a fee. So, if you spend $100 to fill up, the gas station only get $97 of cash, 3-5 days later. So with prices near $6 a gallon people will shop around. This means dude needs to keep his prices as close to his costs as possible. But if he is losing 3% of every sale to the credit card company he needs to up his price.

So the difference in cash prices gives people the incentive to hit the ATM before coming to buy gas, because cash works better for him. But the credit price is high enough to keep it work the float and fee, and also not too high as to scare people away.

Make sense?


#6

This post was flagged by the community and is temporarily hidden.


#7

Wow. You guys are paying Japan gas prices. And I’m pretty sure we have some of the highest gas prices in the world.

What’s it going to take for people in California to wake up and recognize there is a very serious problem that needs to be addressed rationally?


#8

Pitt -

If oil companies have such control over prices why did they let oil crash to $35/barrel in 08/09 and then let it stay sub $50 for over 6 months?

Are you aware that most of the Canadian oil sands oil has a marginal cost of $60 + ? (and remember that this is the cost of producing the unrefined product…)

Are you aware that most of the large oil companies are public companies and as such, you have full access to their financial statements ?

Here are the most recent profit margins for some well known companies:

Exon - 10.37%
Shell- 5.52%
BP - 4.58%

Outrageous isn’t it ? Getting 5 bucks in your pocket for every $100 in sales !!


#9

[quote]tmay11 wrote:
Pitt -

If oil companies have such control over prices why did they let oil crash to $35/barrel in 08/09 and then let it stay sub $50 for over 6 months?

Are you aware that most of the Canadian oil sands oil has a marginal cost of $60 + ? (and remember that this is the cost of producing the unrefined product…)

Are you aware that most of the large oil companies are public companies and as such, you have full access to their financial statements ?

Here are the most recent profit margins for some well known companies:

Exon - 10.37%
Shell- 5.52%
BP - 4.58%

Outrageous isn’t it ? Getting 5 bucks in your pocket for every $100 in sales !! [/quote]

You seem to be quite an expert , I am sure that is considering the profit right down to Retail(NOT)

Shell from ground to pump http://en.wikipedia.org/wiki/Shell_Oil_Company

These are FUCKING HUGE COMGLOMERATES glad you can wrap your mind around them with such ease
I hope you are making a killing in the market


#10

[quote]pittbulll wrote:

You seem to be quite an expert , I am sure that is considering the profit right down to Retail(NOT)

[/quote]

Why are you against the retail people making profit?

I mean the dude that owns the local pump is your neighbor man. Why demonize him for trying to make a buck and send his kid to good schools?


#11

http://switchboard.nrdc.org/blogs/smui/Gasoline%20Profit%20Margin%20Breakdowns_final.pdf

Average profit margin in 2011 was 44%


#12

I would like to think that the rise in gas prices will ultimately change consumer behavior causing them to move closer to work, buy vehicles that are more appropriate to their driving style, and drive less. But I know that’s not going to be the case.

Personally I’m OK with the gas prices and it doesn’t impact me as much as it does others. I’ve got a short commute, a paid for truck, and typically buy groceries that are locally sourced (as best possible). Bring on $10 a gallon gas. And yes, I’m perfectly OK with people leaving the state because it’s too expensive.

Unfortunately some amount of clean air regs are a necessity simply due to the amount of cars we have traveling on our highways. I’m lucky to live somewhere with relatively good air quality but there’s a lot of people who live in areas that don’t have that luxury.

james


#13

[quote]countingbeans wrote:

[quote]pittbulll wrote:

You seem to be quite an expert , I am sure that is considering the profit right down to Retail(NOT)

[/quote]

Why are you against the retail people making profit?

I mean the dude that owns the local pump is your neighbor man. Why demonize him for trying to make a buck and send his kid to good schools?[/quote]

I am not against anyone making profit , I have stock in oil companies


#14

[quote]atypical1 wrote:
I would like to think that the rise in gas prices will ultimately change consumer behavior causing them to move closer to work, buy vehicles that are more appropriate to their driving style, and drive less. But I know that’s not going to be the case.

Personally I’m OK with the gas prices and it doesn’t impact me as much as it does others. I’ve got a short commute, a paid for truck, and typically buy groceries that are locally sourced (as best possible). Bring on $10 a gallon gas. And yes, I’m perfectly OK with people leaving the state because it’s too expensive.

Unfortunately some amount of clean air regs are a necessity simply due to the amount of cars we have traveling on our highways. I’m lucky to live somewhere with relatively good air quality but there’s a lot of people who live in areas that don’t have that luxury.

james[/quote]

I with you , I commute 35 miles to work. My wifes car get 35 miles per gallon @ 80 costs me a gallon of gas each way


#15

[quote]pittbulll wrote:
http://switchboard.nrdc.org/blogs/smui/Gasoline%20Profit%20Margin%20Breakdowns_final.pdf

Average profit margin in 2011 was 44%[/quote]

Not sure you read that before posting it.

It includes intercompany transactions which is retarded, and understimates costs.

I can turn a pretty word doc into a .pdf and link it to a blog with shit information too…


#16

[quote]countingbeans wrote:

[quote]pittbulll wrote:
http://switchboard.nrdc.org/blogs/smui/Gasoline%20Profit%20Margin%20Breakdowns_final.pdf

Average profit margin in 2011 was 44%[/quote]

Not sure you read that before posting it.

It includes intercompany transactions which is retarded, and understimates costs.

I can turn a pretty word doc into a .pdf and link it to a blog with shit information too… [/quote]

I am sure the article is intended for more than my purpose. Your point is ?


#17

[quote]pittbulll wrote:

[quote]countingbeans wrote:

[quote]pittbulll wrote:
http://switchboard.nrdc.org/blogs/smui/Gasoline%20Profit%20Margin%20Breakdowns_final.pdf

Average profit margin in 2011 was 44%[/quote]

Not sure you read that before posting it.

It includes intercompany transactions which is retarded, and understimates costs.

I can turn a pretty word doc into a .pdf and link it to a blog with shit information too… [/quote]

I am sure the article is intended for more than my purpose. Your point is ?
[/quote]

My point is, you’ll need more than that .pdf porduced by god knows who with admitted shitty estimates to prove your point.


#18

[quote]countingbeans wrote:

[quote]pittbulll wrote:

[quote]countingbeans wrote:

[quote]pittbulll wrote:
http://switchboard.nrdc.org/blogs/smui/Gasoline%20Profit%20Margin%20Breakdowns_final.pdf

Average profit margin in 2011 was 44%[/quote]

Not sure you read that before posting it.

It includes intercompany transactions which is retarded, and understimates costs.

I can turn a pretty word doc into a .pdf and link it to a blog with shit information too… [/quote]

I am sure the article is intended for more than my purpose. Your point is ?
[/quote]

My point is, you’ll need more than that .pdf porduced by god knows who with admitted shitty estimates to prove your point.[/quote]

The group responsible for the Shitty PD file


#19

[quote]pittbulll wrote:

[quote]countingbeans wrote:

[quote]pittbulll wrote:

[quote]countingbeans wrote:

[quote]pittbulll wrote:
http://switchboard.nrdc.org/blogs/smui/Gasoline%20Profit%20Margin%20Breakdowns_final.pdf

Average profit margin in 2011 was 44%[/quote]

Not sure you read that before posting it.

It includes intercompany transactions which is retarded, and understimates costs.

I can turn a pretty word doc into a .pdf and link it to a blog with shit information too… [/quote]

I am sure the article is intended for more than my purpose. Your point is ?
[/quote]

My point is, you’ll need more than that .pdf porduced by god knows who with admitted shitty estimates to prove your point.[/quote]

The group responsible for the Shitty PD file
[/quote]

lol, I swear you just refuse to see what is in front of you. http://switchboard.nrdc.org/blogs/smui/

Yes, this guy looks like a non-partisan who understands the finer points of inter company transfers and internation business.

Got to be kidding me.


#20

In other news, the tobacco industry just released a study that smoking is good for you…

Yawn.