Gas prices up $1 a gallon just this spring

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Originally Posted By: HTSS_TR
Originally Posted By: Benito
Our friends in California may right now be victims of collusion. Apparently, the mandatory stock levels over there are lower than the rest of the country so supply disruptions spike prices and result in nice extra profits for the oil companies. All while gasoline demand in California has been falling.

There is no evidence what-so-ever that there is collusion of the oil companies to raise price in California the last few months.

Every time when there is a spike in gasoline price in California there was investigates from many state government agencies and they never found any evident at all.

We paid higher price than national average because: higher state and local tax plus special formula that cost about 15-20 cents more and no one else produces it so supply is limited.

Most of the time we pay about 50-60 cents higher than national average, but we don't complain against oil industry, we complain about state regulation and tax because they are responsible for higher price.


There will never be any collusion found whenever gov officials are doing the oversight...they aren't going to bite the hand that feeds them...hire a private firm to look for collusion and it may not be so difficult to find...
 
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Originally Posted By: HTSS_TR
Are you sure XOM made 13%, 14%, 17% profit for 2014, 2013, 2012 from revenue ?


Yes. Profit before tax.
 
Originally Posted By: Benito
Originally Posted By: HTSS_TR
To me it is very fair to earn 8-12% profit after all expense but before tax.


OK, well XOM made 13%, 14%, 17% for 2014, 2013, 2012. So that is more than fair?

And I presume you mean profit as a % of sales.

According to huffingtonpost.com XOM made $44.9 billions in 2012 from about $460 billions revenue(not actual number, it is 4 times 4th quarter revenue of $115.17 billions). This is about 10% profit margin.

http://www.huffingtonpost.com/2013/02/01/exxon-mobil-profit-world-record_n_2598502.html
 
When you accuse someone, be it individual person or a group or a company, commits any crime or violates any law(federal or state) you need evidence.

It is very much the same that someone accused of some boys in an university raped her few months ago, it was posted on one of the magazine and online, but turned out there was no evident of any rape and it was actually a lie.

To me, an accuser is lie if he/she has no evidence when he/she accuse someone violating a law or commit a crime.
 
Originally Posted By: HTSS_TR
we don't complain against oil industry, we complain about state regulation and tax because they are responsible for higher price.


So CA's gas prices are 17c higher than the national average thanks to taxes.

And the other regulation I am aware of is the low carbon fuel requirment which has been adopted in parts of Europe and British Columbia and which other parts of the US are also moving towards.

I don't know how much that costs but it's something that presumably the voters support. Certainly, prior regulation to lessen smog in LA was required for public health reasons. Other parts of CA eg Bakersfield still have amongst the worst air quality in the entire US.

So apart from that, what other regulations are causing the price increases? From everything I've read, the lack of inventory and "accidents" causes price spikes and that is all controlled by the oil industry.
 
Originally Posted By: Benito
Originally Posted By: HTSS_TR
we don't complain against oil industry, we complain about state regulation and tax because they are responsible for higher price.


So CA's gas prices are 17c higher than the national average thanks to taxes.

And the other regulation I am aware of is the low carbon fuel requirment which has been adopted in parts of Europe and British Columbia and which other parts of the US are also moving towards.

I don't know how much that costs but it's something that presumably the voters support. Certainly, prior regulation to lessen smog in LA was required for public health reasons. Other parts of CA eg Bakersfield still have amongst the worst air quality in the entire US.

So apart from that, what other regulations are causing the price increases? From everything I've read, the lack of inventory and "accidents" causes price spikes and that is all controlled by the oil industry.


Yeah, I wish I could increase my profits by slowing my work pace, or stopping altogether...what a crock...
 
If you could bill more during that shorter period, you certainly could, or if you get paid by the hour, you could. People do it all the time.
wink.gif
 
Originally Posted By: Benito
So CA's gas prices are 17c higher than the national average thanks to taxes.

And the other regulation I am aware of is the low carbon fuel requirement which has been adopted in parts of Europe and British Columbia and which other parts of the US are also moving towards.

I don't know how much that costs but it's something that presumably the voters support. Certainly, prior regulation to lessen smog in LA was required for public health reasons. Other parts of CA eg Bakersfield still have amongst the worst air quality in the entire US.

So apart from that, what other regulations are causing the price increases? From everything I've read, the lack of inventory and "accidents" causes price spikes and that is all controlled by the oil industry.

California average is about 50 cents to 75 cents above national average most of the time. When we have disruption in supply side the price can spike up 30-50 cents within days, and makes our price more than $1/gal more than national average.

As of June 08, 2015 national average is $2.75 and California is $3.61 for $86 cents above national.

We pay much higher than national average but we don't blame the oil industry for the high price we pay. The problem is higher tax and special blend that makes our gas unique and therefore limit supply. Also, special blend cost more too and estimated some years ago that it costs another 15-20 cents a gallon.

http://newsroom.aaa.com/tag/gas-prices/
 
Last edited:
Originally Posted By: HTSS_TR
Originally Posted By: Benito
So CA's gas prices are 17c higher than the national average thanks to taxes.

And the other regulation I am aware of is the low carbon fuel requirement which has been adopted in parts of Europe and British Columbia and which other parts of the US are also moving towards.

I don't know how much that costs but it's something that presumably the voters support. Certainly, prior regulation to lessen smog in LA was required for public health reasons. Other parts of CA eg Bakersfield still have amongst the worst air quality in the entire US.

So apart from that, what other regulations are causing the price increases? From everything I've read, the lack of inventory and "accidents" causes price spikes and that is all controlled by the oil industry.

California average is about 50 cents to 75 cents above national average most of the time. When we have disruption in supply side the price can spike up 30-50 cents within days, and makes our price more than $1/gal more than national average.

As of June 08, 2015 national average is $2.75 and California is $3.61 for $86 cents above national.

We pay much higher than national average but we don't blame the oil industry for the high price we pay. The problem is higher tax and special blend that makes our gas unique and therefore limit supply. Also, special blend cost more too and estimated some years ago that it costs another 15-20 cents a gallon.

http://newsroom.aaa.com/tag/gas-prices/


Nobody's blaming the oil industry for prices that are higher due to a higher tax rate in a particular state, or higher prices due to mandated blends...we deal with those same issues here in IL...my contention with the industry is when they raise prices $1 a gallon over roughly a 6 month period of time while at the same time crude has remained under $60 a barrel...THAT'S completely unnecessary and is nothing more than gouging...
 
Crude has gone from under $45/bbl to just under $60/bbl So that's a 33% increase in price over the last 60 days.

In the same period, RBOB has gone from about $1.75/gal to $2.07/gal or about 18% increase.

Therefore, the commodities price of gasoline has increased LESS in the past two months, not more.

Let's go back 5 months to Jan 2015, the lowest RBOB I see in recent history.

RBOB $1.25
Crude about $45/bbl

Same 33% increase for crude. Gasoline increase is about a 65% increase.

But they are not making the same gasoline. Summer blend now, so some refineries went down to switch, holiday increased demand.

The point is, sometimes, when you look at the price change, crude rises faster than gasoline. I.E. the past two months. Other times, when you look, gasoline rises faster than crude, such as the last 5 months.

Sometimes you "win" others you don't. But generally speaking, the RBOB price will follow crude prices. How closely depends on what else the refinery makes. If they need to make heating oil or change blends, you may see higher prices in gasoline because of other demands on the refiners to produce other products such as diesel, heating oil, etc.
 
Okay, oil at $60/bbl currently. Our gas price around $3.65

Last year when oil was $105, our gas was around $4.05

Oil is a good 40% lower now. Our gas is, oh, 10% less.

We have paid the same [3.65] price for gas, when oil was $80-90/bbl.
They'll take whatever excuse they can to keep prices high. I drive higher mpg vehicles and use a CC with 5% gas rebates so I don't worry about it.
 
Originally Posted By: HTSS_TR
California average is about 50 cents to 75 cents above national average most of the time.

The problem is higher tax and special blend that makes our gas unique and therefore limit supply. Also, special blend cost more too and estimated some years ago that it costs another 15-20 cents a gallon.


I've edited your post to boil it down to the numbers.

1) CA Tax is 17c higher than national average.
Source: http://www.api.org/~/media/files/statistics/statemotorfuel-onepagers-apr-2015.pdf

2) CA Blend adds 15c-20c. Source: You

Total of 1) + 2) = 32c to 35c

Originally Posted By: HTSS_TR
California average is about 50 cents to 75 cents above national average most of the time
 
Originally Posted By: Benito
Originally Posted By: HTSS_TR
California average is about 50 cents to 75 cents above national average most of the time.

The problem is higher tax and special blend that makes our gas unique and therefore limit supply. Also, special blend cost more too and estimated some years ago that it costs another 15-20 cents a gallon.


I've edited your post to boil it down to the numbers.

1) CA Tax is 17c higher than national average.
Source: http://www.api.org/~/media/files/statistics/statemotorfuel-onepagers-apr-2015.pdf

2) CA Blend adds 15c-20c. Source: You

Total of 1) + 2) = 32c to 35c

Originally Posted By: HTSS_TR
California average is about 50 cents to 75 cents above national average most of the time


and in the real world, we currently have:
USA average: $2.75
CA average: $3.58

So, add in 3 or 4, because 1+2 ain't making it
 
The only suggestion I have is don't live in Califorina. I just paid 2.659 for regular unleaded in St Louis.

Originally Posted By: surfstar
Okay, oil at $60/bbl currently. Our gas price around $3.65

Last year when oil was $105, our gas was around $4.05

Oil is a good 40% lower now. Our gas is, oh, 10% less.

We have paid the same [3.65] price for gas, when oil was $80-90/bbl.
They'll take whatever excuse they can to keep prices high. I drive higher mpg vehicles and use a CC with 5% gas rebates so I don't worry about it.
 
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