Gas Price Increases Why am I not being gouged

[RItaly]

I wonder if someone has a cogent explanation for the .25/gal virtually overnight increase in the price of gas.

I don't buy the "Harvey pap". The fuel in the Marathon/Shell etc. tanks is in the ground and paid for. It was processed weeks if not months ago. Even if all the outlets use the same distributor, the point is the same.
There is a general surplus of gas, Labor Day Weekend does not get it for me.

Unless I hear a clear explanation, I conclude it is price gouging.

[Wiotte]

I wonder if someone has a cogent explanation for the .25/gal virtually overnight increase in the price of gas.



I don't buy the "Harvey pap". The fuel in the Marathon/Shell etc. tanks is in the ground and paid for. It was processed weeks if not months ago. Even if all the outlets use the same distributor, the point is the same.

There is a general surplus of gas, Labor Day Weekend does not get it for me.



Unless I hear a clear explanation, I conclude it is price gouging.



Our congressman should be on this.

[JoMar]

Ever hear of futures? You don't pay for what's in the ground, you pay for what the next tank will be. Every news outlet is projecting increases for the next couple weeks. Largest refinery is down, the primary pipeline is doen, lots of stuff under water.......you can call it gouging if it makes you feel better.

[jsw14]

U should know by now, Tax payers PAY for Everything now-a-days....Even US Retired Folk's...........

[NYGUY]

....Unless I hear a clear explanation, I conclude it is price gouging.

Yah, give um hell Harry :rant-rave:

[fourandrew]

Ever hear of futures? You don't pay for what's in the ground, you pay for what the next tank will be. Every news outlet is projecting increases for the next couple weeks. Largest refinery is down, the primary pipeline is doen, lots of stuff under water.......you can call it gouging if it makes you feel better.

agree 100% with you---the station owners have topay for future gas prices--not what's in the storage tank. Many people unfortunately don't know how futures work.

[njbchbum]

Ever hear of futures? You don't pay for what's in the ground, you pay for what the next tank will be. Every news outlet is projecting increases for the next couple weeks. Largest refinery is down, the primary pipeline is doen, lots of stuff under water.......you can call it gouging if it makes you feel better.

Great explanation!

[dewilson58]

Free Market.

Spend your money where you chose. If gouging and you move your business...........that's about all you can do.


If all stations go up, then there is probably a link to the Futures markets.

[blueeagle65]

Ever hear of futures? You don't pay for what's in the ground, you pay for what the next tank will be. Every news outlet is projecting increases for the next couple weeks. Largest refinery is down, the primary pipeline is doen, lots of stuff under water.......you can call it gouging if it makes you feel better.

MY gas - MY price. End of discussion - get over it.

[golow]

Prices serve a valuable purpose in economics. They tell us about the value and scarcity of goods/services. With the current disaster, there is less supply of gasoline (it is more scarce). The market needs a way of telling consumers this; that way is the increasing of prices. This increase in price encourages us to reduce usage and look for substitutes.

Prices gouging is just a pejorative term that really has no economic meaning. I am sure that many of us engaged in “price gouging” during our lives. This may have taken for the form of maximizing our profits is our businesses or perhaps getting the highest price for a house we were selling.

I too get a little upset at first when I see a bump in gas prices. But that’s when I turn off my emotions and turn on the thinking part of my brain. And then I try to use less gas…. that is my small part in helping with the problem (the prices of gas problem, not the real problem which is the humanitarian one).

[ditka41]

Not "gouging", it's simply an example of SUPPLY AND DEMAND economics, which works quite well. It applies to most everything we purchase such as houses here in The Villages, groceries, airline tickets, entertainment, etc. --- What did you call it when gasoline prices dropped? Get over it and be thankful we live in America. We should also be grateful that we are not experiencing the flooding that has temporarily interfered with our supply of cheap fuel.

[bdorman]

With many commodity items (gasoline, groceries, etc.) the retailer has to price the product at "replacement cost," i.e. I need to sell this gas for $2.50 a gallon because that's what it's going to cost me to resupply.

It might seem like it works against the consumer when prices are rising, but it works in our favor when prices come back down. When the replacement cost is falling, the retailer is selling his "in-ground" gasoline for less than he paid for it.

It all evens out in the end.

P.S. If you want a good example of "managed pricing" look what it's done to Venezuela.

[perrjojo]

Ever hear of futures? You don't pay for what's in the ground, you pay for what the next tank will be. Every news outlet is projecting increases for the next couple weeks. Largest refinery is down, the primary pipeline is doen, lots of stuff under water.......you can call it gouging if it makes you feel better.
You are absolutely correct. Same happens when gas is in the ground and prices go down (yes it happens) then the operator loses money. It all evens out.

[justjim]

Those of us who live in The Villages are fortunate to have an alternative form of transportation to go anywhere in The Villages in a golf cart. Do I need to say more?

[jeriteri]

I've Tweeted the POTUS a couple of times on the gas price. I asked him to watch the companies raising their prices due to Harvey. I can't believe the Texas area temporarily shut down would cause a raise in prices. Once back up they will catch up. Maybe not for some of you but others are still working and raising a family and have to travel far to work so this .25 a gallon adds up in a months time. I'm sure the increase will last much longer than the facilities are shut down. Who's watching them? No one. They have always done what they have wanted with pricing. Remember when we were paying 3.50 and up a gallon. They will do it again if they are allowed to. Write your Congressman now before the gas gouges your budget.

[Fred R]

I've Tweeted the POTUS a couple of times on the gas price. I asked him to watch the companies raising their prices due to Harvey. I can't believe the Texas area temporarily shut down would cause a raise in prices. Once back up they will catch up. Maybe not for some of you but others are still working and raising a family and have to travel far to work so this .25 a gallon adds up in a months time. I'm sure the increase will last much longer than the facilities are shut down. Who's watching them? No one. They have always done what they have wanted with pricing. Remember when we were paying 3.50 and up a gallon. They will do it again if they are allowed to. Write your Congressman now before the gas gouges your budget.



I'm sorry to bust your bubble, but Congress does not control oil prices.

[Daddymac]

There was 2 pipelines, That move the Gas out of Texas, That were shut Down. It supplies Gas all around the US.

[JoMar]

I've Tweeted the POTUS a couple of times on the gas price. I asked him to watch the companies raising their prices due to Harvey. I can't believe the Texas area temporarily shut down would cause a raise in prices. Once back up they will catch up. Maybe not for some of you but others are still working and raising a family and have to travel far to work so this .25 a gallon adds up in a months time. I'm sure the increase will last much longer than the facilities are shut down. Who's watching them? No one. They have always done what they have wanted with pricing. Remember when we were paying 3.50 and up a gallon. They will do it again if they are allowed to. Write your Congressman now before the gas gouges your budget.

Government taxes....you might be confused over what their involvement is with the market. We control pricing by using products or not using products.

[Chi-Town]

Just gassed uo at the Shell on 466. About 30 cents higher than last visit.

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[SFSkol]

As I understand it it is similar to LIFO, (Last in first out) inventory accounting method. Since replacement costs increase (Last In) it affects the new First Out price. It happens in reverse when replacement prices go down. How quickly that happens is an altogether different issue.

[jeriteri]

I'm sorry to bust your bubble, but Congress does not control oil prices.

OK thanks for the info. BUT, if government can control the cost of electricity, they should be able to control the cost of gasoline which is a large portion of a family's budget because it's already high to begin with.Thank you for your comment.

[Gordon82]

I worked for over 30 years for Colonial Pipeline. I called the office the other day and asked about how Harvey had affected our facilities. Although none of our facilities were damaged, 3 of our major injection sites were closed due to refineries being shut down, so our total volumes are well down. We normally deliver well over 2 million barrels (1 barrel = 42 gallons) a day.

The supply in the distribution system is probably 7 to 10 days, but what always happens is everyone goes out and fills up their cars at the same time, similar to a run on a bank. So with less supply, prices quickly rise. Gouging only occurs when there are few suppliers. There are gas stations all over the place, so that is not what is happening here. Prices will fall once the refineries are back online.

[tuccillo]

Electricity and gasoline are fundamentally different. Gasoline is produced locally from crude oil, which is a global commodity. Electricity is produced locally, primarily with locally produced coal and natural gas. If you have been overseas you will notice that gasoline is generally a bargain in this country. Some argue that our gasoline is priced too low and the taxes on gasoline (already a pretty good chunk of the cost of gasoline) should be higher to support road and bridge infrastructure construction. The Government does attempt to exert some influence on prices by occasionally releasing crude from the Strategic Petroleum Reserve but I believe the current price bump is due to Houston refinery issues, not the supply of crude.

John Stossel has an interesting column in the paper today.

OK thanks for the info. BUT, if government can control the cost of electricity, they should be able to control the cost of gasoline which is a large portion of a family's budget because it's already high to begin with.Thank you for your comment.