California Gas Stations Begin to Shut on Record-High Prices, page 3


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reply posted on 5-10-2012 @ 11:07 AM by usernameconspiracy
Originally posted by Zaphod58
reply to
post by sawgunn69



I know someone that ran a gas station several years ago. Whenever one station in the area changed their prices, the others would match them quickly. They would notify the other stations that they were changing their prices, but they didn't consult.


Agreed. When I working in grocery management we had a gas station and one of the jobs I had was to drive to the four closest competing stations a few times a day to see what they were charging. If they went up, we went up, but a penny less. If they went down, we went down. No good reason to increase or decrease prices was ever used to determine the price.



reply posted on 5-10-2012 @ 11:41 AM by MsAphrodite
The government makes more off a gallon of gas than the oil company. That is the plain truth. I'm so sick of people pointing the finger at industry in this country. Here is a bit of information along with a link for you.



You may blame high gas prices on rich oil company executives or greedy gas station owners. The truth is that governments rake in a larger profit at the pump than anyone—and with gas taxes on the rise in many parts of the country, there's no relief in sight. The price of a gallon of gas is based on the combination of four costs: that of crude oil, of refining gas, of distribution and marketing, and of taxes.




Crude oil costs make up about 76% of the cost of gasoline, according to U.S. Energy Information Administration (EIA). Thus $2.66 of a $3.50 gallon of gasoline is set before the oil is even refined.




Refining oil is the next step in the process—and the next expense for drivers. Gasoline is extracted from crude oil and additives, including lubricants and detergents to reduce engine deposits, are added. As of January 2012, the EIA found that refining was responsible for 6% of the cost of gasoline.




Distribution and marketing—the part of the process most apparent to consumers—constitutes another 6% of gas prices




The remaining 12%—or almost 50 cents per gallon today—goes directly to federal, state and local governments in an array of sales and excise taxes. The federal gas tax is 18.4 cents on every gallon of gasoline sold in America. State gas-tax rates vary from a low of eight cents per gallon in Alaska to a jarring 49 cents per gallon in New York. Other states where it's steep to fill up include California and Connecticut—each with 48.6-cent-per-gallon gas taxes—and Hawaii, at 47.1 cents per gallon. Some local governments have gotten in on the act, too. In California, local sales and excise taxes on gasoline average 3.1%, according to the Los Angeles Times. That works out to about 12 cents in local taxes for each gallon of gas, based on the state's current average of $3.80 per gallon.




Put this all together, and government makes far more from gas sales than all of the oil companies put together. Exxon, for example, made only seven cents per gallon of gasoline in 2011. That's a drop in the bucket compared to the nearly 50 cents per gallon that federal, state and local governments rake in on an average gallon of gas pumped in the U.S.


Visit the link to find out more:
link


So there you have it. Put the blame for high costs where the blame belongs.


reply posted on 5-10-2012 @ 12:08 PM by MsAphrodite
reply to post by usernameconspiracy



Understood, but the taxes taken per gallon by the government vs. the profit taken by the oil company is the point I am making.


reply posted on 5-10-2012 @ 08:04 PM by Mountainmeg
Originally posted by jjkenobi
California doesn't do themselves any pricing favors by having unique state mandated stipulations on the gasoline sold there.

www.usnews.com...


^^THIS. California is a closed market due to the state mandates on gasoline. Refineries had to put billions of dollars into upgrades to meet the state mix standards, one of the reasons CA gas always costs more than other states. The other problem with this is companies cannot import gas INTO California, leaving the only the gas produced in CA available. There's been a refinery fire and another refinery shut down recently which tightens supply.

BTW, the oil industry was the one industry I worked in that had near perfect information on what competitors were doing through an internet news service back in the mid 90's. If another wholesaler increased their prices, we knew within a very short time and would raise our.s



reply posted on 22-2-2013 @ 10:20 AM by Headband7
reply to post by jjkenobi



Right-heaven forbid a state tries to protect the earth.


reply posted on 22-2-2013 @ 10:30 AM by GoalPoster
Originally posted by VforVendettea
reply to
post by grey580



Create a cheap alternative fuel and you will see prices drop like a rock.


Creat cheap alternative fuel and you'll get a bullet right in the head and those that own the oil companies will buy the patent and it will never see the light of day.


reply posted on 23-2-2013 @ 10:56 AM by Zaphod58
reply to post by intrepid



I won't buy diesel in California. If I'm not sure I can make it out with what I have, I'll put between 30 and 50 gallons in and that's all. It's usually up to 50 cents higher for diesel there than the states around it.
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