Gas Prices Are Going Up

[Greatlake]

Oddly, the E0 87 at the Exxon convenience store near me was only .02 more than the E10 -- $2.49 vs. $2.47. Then I get .06/gal. off for using my Exxon card.

Commodity price of Pure Ethanol is now $1.80 per gallon. Commodity price of Pure Gasoline (not RBOB) is $2.01 per gallon. The difference in price is $0.21 or 21 cents per gallon.

A 10% ethanol blended gasoline is about 2.1 cents per gallon lower cost to the gas station than a pure gasoline.

The Exxon convenience store is making the same sales profit margin on E0 as they are on E10.

They don't care which gasoline blend (E0 or E10) you buy.

They just want you to buy something in the convenience store.

 

[GON]

The retail gasoline market is extremely competitive. If the government didn't require gas stations by law to post their prices on a sign out in front of each gas station there would probably be a wider difference in prices. Since prices are posted at the street it is easy to see a competitor's pricing.
Gas stations try to match (or beat by a few cents per gallon) each others' gas prices.

Gas stations make very little money (if any) on gasoline sales. They make their money selling items in the convenience store.

I am not sure that "Gas stations make very little money (if any) on gasoline sales. ". I buy a lot fuel in a lot of places, and my experience in many areas unleaded fuel has a very nice markup. I can start to name areas such as Reno, Las Vegas, , Phoenix, Heber City (UT). Some areas like the Midwest appear to have low profit margins in unleaded fuel, but high growth states outside of Texas and Florida seem to be doing just fine in making $$$$ selling unleaded.

My town of Midway, UT has a station that sells Chevron fuel for .30 per gallon less than the huge strip of stations on US 40 in Heber City.

 

[PimTac]

I am not sure that "Gas stations make very little money (if any) on gasoline sales. ". I buy a lot fuel in a lot of places, and my experience in many areas unleaded fuel has a very nice markup. I can start to name areas such as Reno, Las Vegas, , Phoenix, Heber City (UT). Some areas like the Midwest appear to have low profit margins in unleaded fuel, but high growth states outside of Texas and Florida seem to be doing just fine in making $$$$ selling unleaded.

My town of Midway, UT has a station that sells Chevron fuel for .30 per gallon less than the huge strip of stations on US 40 in Heber City.

Generally the profit margin on gasoline is tiny. You have to sell a lot of it. Stations make their big profits inside the convenience store.

State and Federal taxes are a huge portion of the price. Don’t forget them.

 

[GON]

Generally the profit margin on gasoline is tiny. You have to sell a lot of it. Stations make their big profits inside the convenience store.

State and Federal taxes are a huge portion of the price. Don’t forget them.

Observations do not support the generally accepted statement that gas is a tiny profit margin. Yes huge markups in the convenience store, but regular sampling of fuel prices across the nation show stations in high growth states outside of Florida and Texas are making nice margins on unleaded fuel. In the dead growth areas of the Midwest- sure the margin may be slim to none. But in high growth states nice cash is being generated BOTH at the pump and in the convenience store.

 

[daves87rs]

2.69 here

 

[BlueOvalFitter]

Average price around here where I live is now $2.69 for regular unleaded. That's up from $2.55 last week.

 

[TiGeo]

93 at Costco in VA today was $2.74/gal

 

[grampi]

The retail gasoline market is extremely competitive. If the government didn't require gas stations by law to post their prices on a sign out in front of each gas station there would probably be a wider difference in prices. Since prices are posted at the street it is easy to see a competitor's pricing.
Gas stations try to match (or beat by a few cents per gallon) each others' gas prices.

Gas stations make very little money (if any) on gasoline sales. They make their money selling items in the convenience store.

If it's so competitive, then why do all of the stations have exactly the same price?

 

[Snagglefoot]

If it's so competitive, then why do all of the stations have exactly the same price?

Because if anyone went lower, they would make any money.

 

[4WD]

Just paid $2.49 at a Mobil minus a wee bit for selecting a car wash. The same branded store with Exxon tore out it’s old car wash and has been building a larger car wash for 3 months. Seems clear those are additional money makers at fill up time.

 

[grampi]

Because if anyone went lower, they would make any money.

Exactly! Why? Because prices are tightly controlled. It isn't like you can drive down the street to a discount station and buy gas there for 50 cents less a gallon...the only competition in the market is between speculators to see who can drive up the price the most...

 

[Snagglefoot]

Exactly! Why? Because prices are tightly controlled. It isn't like you can drive down the street to a discount station and buy gas there for 50 cents less a gallon...the only competition in the market is between speculators to see who can drive up the price the most...

Whoops. I meant to say, they wouldn’t make any money. I know what you are saying, but as I mentioned before, the price is established by the traders on the Chicago Mercantile, then there is pipeline transportation, trucking, taxes, and dealer markup. If you want you can buy Exxon Mobil stock (XOM), to help temper the blow. Currently there are only 310 drilling rigs in the USA drilling for oil. The oil price is simply not high enough to make a profit in the upstream as well. We Canadians are feeding the USA with as much oil as possible, but apparently some oil pipeline got cancelled.

 

[barkingspider]

$3.90 a gallon here in southern CA. Thinking about getting an economy 4 cyl beater now that gas prices are increasing

 

[jrvn]

$2.89 in NJ, and now you can legally smoke Mary Jane too, about 2 months ago I got COSTCO gas for $1.99 a gallon

 

[doitmyself]

Fortunately, we are blessed that U.S. gasoline prices are relatively good compared to most of the world: https://www.globalpetrolprices.com/gasoline_prices/

"As a general rule, richer countries have higher prices while poorer countries and the countries that produce and export oil have significantly lower prices. One notable exception is the U.S. which is an economically advanced country but has low gas prices."

 

[GON]

Fortunately, U.S. gasoline prices are relatively good compared to most of the world: https://www.globalpetrolprices.com/gasoline_prices/

That's irrelevant. Prescription medication in the USA is often 500 percent higher than most of the world, and sometimes even more.

I was working in Mexico three years and ran out of my prescription that costs $450 in the USA. Same exact box, same manufacturer(made in the USA), in Mexico was $50.

Free market means lower prices. Controlled/ rigged / markets mean higher prices.

 

[odie]

Add about 90 cents for taxes and gas is close to $3.05 for 87 . Add 10 >15 cents more for arrival of summer blend bringing it nearly to $3.20 .

 

[doitmyself]

That's irrelevant. Prescription medication in the USA is often 500 percent higher than most of the world, and sometimes even more.

I was working in Mexico three years and ran out of my prescription that costs $450 in the USA. Same exact box, same manufacturer(made in the USA), in Mexico was $50.

Free market means lower prices. Controlled/ rigged / markets mean higher prices.

I agree. Discussing gasoline prices is as irrelevant as discussing prescription prices without considering the context of overall standard of living.

 

[4WD]

I agree. Discussing gasoline prices is as irrelevant as discussing prescription prices without considering the context of overall standard of living.

Yes, a gallon of milk would be more exciting …

 

[demarpaint]

$2.67/gallon for regular today.