Price fixing by the oil companies. The profit the the big oil companies are making is obscene.
Price of oil keeps dropping but not gas ???
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Originally Posted By: donz26
Price fixing by the oil companies. The profit the the big oil companies are making is obscene.
LOL
What profit level would be acceptable to you?
How about we agree the companies that explore/develop/transport/refine/transport/market the oil should make at least as much profit as the group(s) that tax it?
Whats obscene is the political football that many have allowed oil to become.
Price fixing by the oil companies. The profit the the big oil companies are making is obscene.
LOL
What profit level would be acceptable to you?
How about we agree the companies that explore/develop/transport/refine/transport/market the oil should make at least as much profit as the group(s) that tax it?
Whats obscene is the political football that many have allowed oil to become.
Holy Moly, Andy, we are now THE CHEAPEST GAS IN ONTARIO
Originally Posted By: donz26
Price fixing by the oil companies. The profit the big oil companies are making is obscene.
How much profit an oil company should be making ? 10% of revenue is acceptable ? or 5% ? or 1% ?
Big oil companies are making about 10% profit, way less than profit that big drug companies are making.
A company with $400 billions in revenue should have larger profit, in term of pure dollars, than a company with $40 billions in revenue.
Price fixing by the oil companies. The profit the big oil companies are making is obscene.
How much profit an oil company should be making ? 10% of revenue is acceptable ? or 5% ? or 1% ?
Big oil companies are making about 10% profit, way less than profit that big drug companies are making.
A company with $400 billions in revenue should have larger profit, in term of pure dollars, than a company with $40 billions in revenue.
The federal, state and local taxes on a gallon of gas are more than what the oil companies make. And they do the work. So if you're angry at the price focus on the taxes.
Originally Posted By: rshaw125
The federal, state and local taxes on a gallon of gas are more than what the oil companies make. And they do the work. So if you're angry at the price focus on the taxes.
+1
and because of revenue pooling, the tax on fuel does not go into roads (which is the motivation - the more you drive the more roads need to be built and fixed). but instead gets spread around for other things. all that tax and the roads in the state they are in, don't make sense.
The federal, state and local taxes on a gallon of gas are more than what the oil companies make. And they do the work. So if you're angry at the price focus on the taxes.
+1
and because of revenue pooling, the tax on fuel does not go into roads (which is the motivation - the more you drive the more roads need to be built and fixed). but instead gets spread around for other things. all that tax and the roads in the state they are in, don't make sense.
donz26 --there is no "price fixing" by the oil co's.it doesn't work that way. it's a common misconception.read javacontour's post on pg. 2.have a good day.
The best way to tell why the price is what it is (at least here in Canada), is to ask the gas station owner/manager why he has the price set where it is..
Or when you see the price change, ask the guy why he just changed it.
If he is honest he will say that he just got a call from his district supervisor and was told what the new price will be and that he has within an hour or so to change it.
Lo and behold all the gas stations in the area get calls from their district managers and the price is uniform across the board in no time at all.
So, if this is the case (and that's the way it was when I operated a brand name station 25 yrs ago) then we would have to talk to the district managers and ask them why they called all their stations that day to change the price... and why all branded and non-branded endeed up the same at the end of the day.
Oil company price fixing ???.. what do you think
Anyway, next time you see the guy changing the price at the gas station, ask him why he is doing it. Should be interesting.
Or when you see the price change, ask the guy why he just changed it.
If he is honest he will say that he just got a call from his district supervisor and was told what the new price will be and that he has within an hour or so to change it.
Lo and behold all the gas stations in the area get calls from their district managers and the price is uniform across the board in no time at all.
So, if this is the case (and that's the way it was when I operated a brand name station 25 yrs ago) then we would have to talk to the district managers and ask them why they called all their stations that day to change the price... and why all branded and non-branded endeed up the same at the end of the day.
Oil company price fixing ???.. what do you think
Anyway, next time you see the guy changing the price at the gas station, ask him why he is doing it. Should be interesting.
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o, if this is the case (and that's the way it was when I operated a brand name station 25 yrs ago) then we would have to talk to the district managers and ask them why they called all their stations that day to change the price... and why all branded and non-branded endeed up the same at the end of the day.
Oil company price fixing ???.. what do you think shrug
This is simple. If he doesn't mark up the gas immediately, he/she has to "pay forward" more money.
Apparently the convenience chains don't care about making up the losses, but for a gas & go with minimal profits elsewhere it's a different story.
Let's say the price went up a nickel each load. Let's say the guy raised the price a nickle when he actually got the gas. So the gas cost him $2.50/gallon. In 50 loads, all of his money is in the ground. To get that money back he has to literally go out of business.
Ideally it's a FIFO method where the losses from intermediate price hikes (the call from the terminal telling him that he's shelling out a nickel more per gallon on the next delivered load) are extended long enough to recover the gap costs. Keep in mind that a competitor could take that hit and he, more or less, is forced to take it too.
You have to look at it as an advancing and retreating line above costs. You'll dip below it and have a lag until you're above that line again.
o, if this is the case (and that's the way it was when I operated a brand name station 25 yrs ago) then we would have to talk to the district managers and ask them why they called all their stations that day to change the price... and why all branded and non-branded endeed up the same at the end of the day.
Oil company price fixing ???.. what do you think shrug
This is simple. If he doesn't mark up the gas immediately, he/she has to "pay forward" more money.
Apparently the convenience chains don't care about making up the losses, but for a gas & go with minimal profits elsewhere it's a different story.
Let's say the price went up a nickel each load. Let's say the guy raised the price a nickle when he actually got the gas. So the gas cost him $2.50/gallon. In 50 loads, all of his money is in the ground. To get that money back he has to literally go out of business.
Ideally it's a FIFO method where the losses from intermediate price hikes (the call from the terminal telling him that he's shelling out a nickel more per gallon on the next delivered load) are extended long enough to recover the gap costs. Keep in mind that a competitor could take that hit and he, more or less, is forced to take it too.
You have to look at it as an advancing and retreating line above costs. You'll dip below it and have a lag until you're above that line again.
Hi Gary: You missed my point
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