I dunno if it's just the store I work at... or the state...or all over the nation...

For the past month and a half the gas has gone down from nearly 3 dollars and some odd cents to approximately $2.72 a gallon regular unleaded. It was at 2.72 I believe yesterday, and WHAM went up to 2.95 in one day...I haven't heard of any huge increase in oil costs lately, so what else would make them raise the cost approx 23 cents in one day? This confuses me more than anything. If anyone could clear this up, I'd be most appreciative. Thanks in advance.

[edit on 31-8-2007 by Chiiru]

While it explains the change in the price of crude oil, Beachcoma, it does not explain why the price at the pump changes as quickly in line with price changes at the wholesale end.

Any crude purchased at these new prices will not hit the pumps for months, there are futures, prices to be paid when the crude is delivered and the petrol in the pumps today was purchased at a very difference futures price.

And why does the pump at the pump go up so quickly in line with changes in the crude price but rarely down as quickly??

In my opinion, Chiiru, this is the oil companies taking advantage and not reflecting the true refining cost of the petrol/gas at the pump.

Originally posted by Freedom ERP
In my opinion, Chiiru, this is the oil companies taking advantage and not reflecting the true refining cost of the petrol/gas at the pump.

Of course. That is how it works. Why lose out on potential profit$?

Well I think another factor (now that Ive actually got some rest lol) is that in my wonderful state of New Mexico, the attourney general of NM was wanting to investigate all the gas stations for having above national average gas prices. Now that apparently hes stopped investigating, they're free to jack up the prices to where they see fit?

Could it have anything to do with the upcoming holiday weekend? Lots of travelers this weekend.

Labor Day weekend, it happens every year. Price gouging.

If you get an answer to your question maybe someone can also tell me why gas is $3.49 in my town and 10 -15 miles away it is $2.79. And there is always that much of a difference in the prices so it isn't just because of a holiday. Basically everyone around here tries to not get gas unless they have a reason to go to the next town over so you can combine getting gas with a shopping trip.

If you get an answer please ask my Governemnet why we pay nearly $10 a gallon??
Yep thats 99P a Litre at my local garage, thats why Ive just bought an old Peugeot 106 diesel and am starting to run it on Veg oil at around 49P a Litre.
Problem is every time I stop I get hungry as it smells like a BBQ

[edit on 31/8/07 by Chorlton]

The one thing that I learned (or at least was told) while working at a gas station back in the 90's concerning gas prices was if the price of oil goes up the price of gas goes up in the next day or so and if the price of oil goes down, it takes a couple of weeks to see it at the gas pump. Now I remember seeing last Wed or Thursday that the price of oil went up to like $72 a barrel or something like that and said by Monday gas would be about $3. Sure enough it went up to $2.98. I'm not sure if this theory is right or not but it does make sense if you follow the price of oil and then watch the prices of gas.

As I understand it, and I've had to explain it many times as the manager of a BP/Amoco north of Chicago (Highest averaged prices in America) is that gas prices are based on Futures and oil prices are based on stockpile. When the stock price of oil goes up, the futures change for gas consumptions taking into consideration the season and driving habits of certain areas. Sometimes oil prices go down and gas prices stay level. Then, when oil prices go up, the gas price will drop down. Sometimes people scream and say "Why is the price so high when I just saw that oil prices came down!!!". That's why. Because the gas price is based on the future of the gas market.
The reason it is so high right now is because Labor Day is a "Driving Holiday" with a three-day weekend. Gas demand goes up and demand is what determines the price.
It's been my observation that independant station owners are, on the majority, innocent of the price gouge. Every station I ran, the owner of the station made as MUCH as $0.04 a gallon. Yes, it adds up to an okay amount after a year or so, but, there's really no gasoline profit margin for the owner of a gas station. The owner makes a BUNDLE on all the crap he sells inside the mini mart though.

Hope I've helped.
Cuhail

thanks for the replies and helpful answers! I completely spaced that it is indeed labor day weekend, and considering I dont own a car, gas hasn't really been too much of a concern for me. I just noticed it and thought "whaaa?" But your replies make a lot of sense, I finally understand now thanks again