there certainly is some shady deals i'm sure by some participants,as well as scams and secret plans,etc.,but ALL businesses has a certain amount of shenanigans going on. the uninformed unfamiliar public see's and hears the news on prices being driven up by the street and assumes the entire street is crooked.sort of the broad brush theory. one thing the little guy can do is ALSO take part in the buy and sell(trading)and if the high price of deisel affects you at the pump then take part in the trading and buy into some oil related stock,futures, etf's etc.learn what you can about trading and try to make a little money to ..get back at 'em..put some money back in your pocket.:smile:
Why doesn't diesel fuel decrease in price?
- Thread starter JDgreen
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JDgreen
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Yesterday, to my astonishment, diesel fuel came down THIRTY CENTS a gallon in price, to $3.99.9 per gallon, I had my two 5 gallon cans stored in my GMC ready to fill. Left home to run errands, by 3 pm the price had already gone up to $4.06.9 per gallon. Gasoline was selling for about $3.75 per gallon then. Today, 27 hours later. gasoline has jumped to $4.20 a gallon again. Frickin' crooks.
JDgreen
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Update....gasoline here locally was selling for as low as $3.65 per gallon yesterday morning and then in the afternoon all the stations raised their price to $4.20.9 or $4.30.9 per gallon in a matter of hours. Yet in many places diesel has remained at $4.05.9. Been a LONG TIME since I have seen diesel selling for less that gasoline !!!!
At most gas stations the amount of deisel sold is far less than the amount of gasoline, and it takes longer for the deisel to sell so the price remains the same for a longer period until the owner of the station can adjust the price in relation to what he thinks his replacement cost will be. If he paid $3.60/gal for the deisel, you can add an average of 48 cents for taxes to that, so now you're up to $4.08/gal, throw in 3 to 5 cents profit for the staion and now you're at $4.13/gal. Going by past trends, the owner thinks the price may be higher the next time he has to buy deisel, so he adds another 5 cents /gal to the price to cover that projected rise in his cost, so now you're at $4.18/gal. If he dropped his price 10 cents/gal because crude prices just dropped $XX/ barrel, he'd be making nothing on the fuel he's already purchased. He might reduce his price by the 5 cents increase he projected, but until that fuel is gone, he must charge at least $4.13/gal to maintain his meager profit margin.
Wow you have stations that are operating on LESS than a one & a half percent margin???
My friends in the retail fuel business are Way ahead of that #.... :smile:KennyV
I don't know exact figures as I'm not in the fuel business, but I'm pretty sure, at least in GA, I've heard the figures in the neighborhod of 5 cents a gallon actual profit for gas station owners. That's what I was basing my statement on. It varies by region I'm sure. GA historically has some of the cheapest fuel prices in the country.
Ahhhh
'actual' profit is likely 'net' profit...
and 5cents net is a very nice dividend after removing every possible chargeable cost...
I had thought you meant they were working with only a 5 cent mark-up... :smile:KennyV