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desire -> RE: Gas Prices (6/21/2004 7:04:41 PM)
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quote:
Why should it be $1.88 at one station and $1.81 5 miles away? You would think they'd be getting it from the same refinery.
Okay, a subject I know a little about, finally. I work for a bulk plant that sells gas, diesel and propane to area stations, farmers and home owners here in Texas.
Number 1 is, yes, they are more than likely getting the fuel at the same refinery. But..... If the price drops 2 or 6 or 8 or even 10 cents (10 cents a day is rare, fyi) and one station got a load in with the price up and the other station was lucky enough to get a load in when the price was down, that is how it can be so different, even if they are located across the block from each other. Most, if not all bulk plants and stations make the same mark up on their products and have no choice but to go up or down as their demands dictate.
Number 2 is, if you have a place you prefer to get your fuel from and they are way above what the others that are close by, please keep in mind that it is not the station that is "screwing" you, but the high prices of crude oil and the companies that refine it.
Each state has their own taxes they tack on to the price of gasoline and diesel and perhaps that is where some "demands" should be made. The federal government has 18.4 cents on gasoline and 24.4 cents on diesel. Then each state has their own individual taxes tacked on. Texas has 20 cents per gallon, which, i've learned isn't bad compared to a lot of other states. After all, Texas does have some fairly decent roads to travel through.
Now consider this: The company i work for buys direct from the refinery and we transport our fuel to our various bulk plants for delivery. We have to pay for our fuel in 10 days as do almost all Transportation companies that deliver fuel. Almost all of our customers pay in 30 days, if not more. We have a credit line in order to do provide that service. Our markup is between 1.75 cents and 14 cents to our customers, not going over that 14 cents, depending on how much they want on delivery. A Transport holds between 7,000 and 8,500 gallons. If we charge 10 cents a gallon, which is rare, it is usually around that 1.75 to 5 cents a gallon max. But even on 10 cents a gallon, that is only $700.00 a load and we have to pay interest for the 20 to 60 days that a customer normally pays for delivery. Then the one that bought the fuel has to have some kind of mark up as well.
Okay, i'm rambling here and i apologize for that....But, it wouldn't hurt to look at the prices sometimes and realize that the money is not being made by the one's delivering it or the one's selling it to you but rather from the refineries. The ones that deliver it and the ones that sell it have the same markup always....they just have to go by what the price is to get it there for them.
Food or fuel for thought...... Stations and the ones getting it to the station don't control the prices and never have. They make the same no matter what the price is and compared to other commodities....they make way less per item (gallon) than all the rest.
How many other products out there make less than 10% on their product they are selling?
desire
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