Well I'll be Darned!

[Nick The Great]

You folks seem to be forgetting that the oil companies are a FOR PROFIT bunch. They are not in it to break even or lose money. I don't fault them for selling gas for as much as they can.

If you owned an oil company, you sure as heck would be making as much as possible.

I just love how people say oil companies are "greedy" and "don't need to make that much money." Give me a break. The same guy would be PISSED if somebody came to his job and wanted to cut his pay in half

Just like anything else, price is determined by what people are willing to pay. Demand versus supply rules the world. As long as demand remains high, prices will follow. If American drivers bought a lot less fuel for a few weeks, you'd see the price come down. We cound easily do it, but nobody wants to be that person that is inconvenienced.

There's only 2 ways to lower oil prices: lower demand and increase supply. There's many ways to accomplish this, but that's another several threads . . .

 

[Boilerup15]

The one thing I have never understood is this, If a gas station would lower the price, wouldn't they in the end, "make more than the other stations?" If I saw a gas station for .20 lower than say one down the road, I would stop at the cheaper one. I would think many others would also.

I don't really care how much the oil companies make, it's their job. Everyone has to earn a living somehow. We all have to have gas to get to our jobs, so therefor we will pay whatever the price is.

 

[Nick The Great]

I don't know the exact numbers, but I don't think most gas stations make that much per gallon. I'd always heard they made somewhere in the neighborhood of .10 per gallon.

 

[tleach17]

I don't know the exact numbers, but I don't think most gas stations make that much per gallon. I'd always heard they made somewhere in the neighborhood of .10 per gallon.

This

Except for the losers that price gouge.

 

[The_Chupacabra]

Plus the only way that a you can volume sell product at a lower price is if you can buy in volume to get a discount on your product. If they paid 3.65 a gallon and charge 3.65 a gallon to get all of the business, they would only break even and let alone cause a feeding frenzy at their pumps and not make a dime in the process.

 

[Boilerup15]

Plus the only way that a you can volume sell product at a lower price is if you can buy in volume to get a discount on your product. If they paid 3.65 a gallon and charge 3.65 a gallon to get all of the business, they would only break even and let alone cause a feeding frenzy at their pumps and not make a dime in the process.

Very true.

 

[Zembonez]

I don't know the exact numbers, but I don't think most gas stations make that much per gallon. I'd always heard they made somewhere in the neighborhood of .10 per gallon.

Average markup for a gallon of gas is .02 to .04 per gallon - even less in extremely competitive markets. End line retailers can't afford to "put their gas on sale".

 

[Nick The Great]

I don't know the exact numbers, but I don't think most gas stations make that much per gallon. I'd always heard they made somewhere in the neighborhood of .10 per gallon.

Average markup for a gallon of gas is .02 to .04 per gallon - even less in extremely competitive markets. End line retailers can't afford to "put their gas on sale".

The state and fed gov't's make WAY more than that per gallon.

 

[Texas Jim]

Fed tax per gallon is 18.4 cents a gallon...
State tax varies from state to state...

http://www.gaspricewatch.com/usgastaxes.asp

 

[Zembonez]

I don't know the exact numbers, but I don't think most gas stations make that much per gallon. I'd always heard they made somewhere in the neighborhood of .10 per gallon.

Average markup for a gallon of gas is .02 to .04 per gallon - even less in extremely competitive markets. End line retailers can't afford to "put their gas on sale".

The state and fed gov't's make WAY more than that per gallon.

You are correct.

The government taxes the hell out of anything we want or need. Gas, Booze, Tobacco.