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Author Topic: Gas prices.  (Read 919 times)

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Offline Chino

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Gas prices.
« on: August 30, 2011, 01:01:34 PM »
I am hoping someone here could provide an answer that wouldn't make me as angry at gas prices. Since the price of oil hit its high in spring, it has dropped roughly 25%. Why is it that the price at the pump is only about 10% less than it was then?
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Offline lordxizor

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Re: Gas prices.
« Reply #1 on: August 30, 2011, 01:04:46 PM »
For every dollar you spend on gas, this price is roughly driven by:

Taxes: 13 cents
Distribution and Marketing: 8 cents
Refining: 14 cents
Crude oil: 65 cents

So the answer would be that costs in the other three areas are increasing, making the cost of crude oil less a factor in the final cost of gas at the pump.

https://auto.howstuffworks.com/fuel-efficiency/fuel-consumption/gas-price1.htm
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Offline XJDenton

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Re: Gas prices.
« Reply #2 on: August 30, 2011, 01:39:12 PM »
That and profiteering. Not in all case but it is sometimes a factor.
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Offline JayOctavarium

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Re: Gas prices.
« Reply #3 on: August 30, 2011, 01:54:49 PM »
Gas prices? suck.
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Offline tjanuranus

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Re: Gas prices.
« Reply #4 on: August 30, 2011, 06:16:26 PM »
Don't you know it's all Obama's fault? Or say I hear all over the place. LAWL.
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Offline chknptpie

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Re: Gas prices.
« Reply #5 on: August 30, 2011, 06:19:39 PM »
I thought it was highest in the spring and summer because they are travel months?
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Offline Riceball

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Re: Gas prices.
« Reply #6 on: August 30, 2011, 06:40:13 PM »
I don't know too much about the US petrol market; but I'd say its got something to do with market concentration. Lower rates of competition.

These companies are vertically integrated (AFAIK), so they control the product from refinement to pump, so they get to set their wholesale prices as well as their retail prices.

Finally, "crude" prices which you are referencing are likely spot prices, not necesserally a reflecting of contract prices between extractors and refiners.

In Australia, we've only really got three (at a stretch four) retailers who have control over distribution, who have formed this "weekly pricing cycle" where prices rise higher at the beginning of the week (usually a Tuesday) and progressively fall over the week only to spike up again. Its basically tacit collusion, but the Government doesn't acknowledge it as such.
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Offline Vajra

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Re: Gas prices.
« Reply #7 on: August 30, 2011, 06:47:43 PM »
In regards to the high gas prices... Last time I saw the insanely high gas prices, I just sat there and stared at the sign and went "HAWWWMMM HAAWWWMMM" in a deep voice of anger.
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