how does gas prices go up overnight?

[vash]

i dont care what is happening at OPEC of anything like that. but, what happens at the gas station level? is a memo sent out to collectively raise prices? prices must reflect the owners purchase price, and the higher wholesale price is passed onto the everyday consumer. but, the storage tank under the gasstation doesnt run empty, are we not buying "yesterdays" gas at todays prices? at some level? i dont get it. anyone own a gas station, that can tell me what is up?

cliff

[djmcmath]

I think that it's a management decision, as in the manager of a particular station. They may get guidance from someone on high, but it seems to me that each station sets their own price. Moreover, they don't always wait until overnight to change -- I've seen gas prices go up twice in a day before. Wild...

Dan

[Moneyguy1]

"There is a squad of people in black clothing that sneaks into every gas station in the middle of the night, armed with ladders. They climb up under the protection of darkness and change the numbers on the signs."

"For the all night stations, they flash false identification identifying them as sign washers. "

"It has been further reported that these individuals are actually employees of the "cartel" (a vast world wide comspiracy), and as such they are in something akin to the "Witless Protection Program" and officially to not exist"

above are excerpts from a new "tell all" book by Bob Wordwood

[ubiquity0]

Strangely the retail prices are extremely quick to respond to crude oil price increases, but painfully slow to go back down again after a decrease.

[GrindingGears]

$2.57 in some parts of the south bay today.

[dd74]

$2.50 in San Fernando Valley. Do I hear $3 before the 4th of July?

[fintstone]

They typically don't base the price on the cost of the fuel in the underground tank. They base it on what they predict it will cost to refill the tank when empty plus an amount to quantify the risk that they are guessing wrong.

[dd74]

Originally posted by fintstone
They typically don't base the price on the cost of the fuel in the underground tank. They base it on what they predict it will cost to refill the tank when empty plus an amount to quantify the risk that they are guessing wrong.

So $3.50?

[osidak]

Ok I was griping but looks like we got it better

Concord NC Premium (93 octane) 1.929 a gallon. Diesel (I drive a diesel as well) $1.699 a gallon

There was a gas station that reopened down the street from me that for two weeks was selling premium for $1.659 noticed last night the prices had climbed.

[lendaddy]

There is generally a dominant chain in the area which sets their price via their advisors (yes, they base it on what they think the next tank will cost). Then all the smaller market stations send out runners to check the big chains prices and they copy them or drop a 1/2 penny to bring in the blue hairs for their coffee and doughnuts MOST gas stations do not make their money on fuel, they make it on the other crap you buy while you're in there. They tend to make the most as prices are going down, not up(I think you know why).

[SRISER]

Lendaddy is right...fuel is a volume business...much like grocery stores.

If you really have an issue with fuel prices, talk to your politicians. A gallon of unleaded on the spot market for arguments sake can cost .80 (which includes the Big Oil Company's profit mind you) but with the additional of TAXES, it is driven up to perhaps 1.40. Add the stations profit of about .02 to .03 a gallon and you get a final price.

This is a very basic example, but you get the idea. About 50% of the cost of a gallon of gas is are the added taxes...you know, to pay of the clogged roadways, piss poor engineering of some of our highways, potholes, etc.

[GrindingGears]

Originally posted by SRISER
This is a very basic example, but you get the idea. About 50% of the cost of a gallon of gas is are the added taxes...you know, to pay of the clogged roadways, piss poor engineering of some of our highways, potholes, etc.

With that being said, Kaleforneenia has some of the highest gas prices in the nation along with the WORST roads.

Ahhh but I ain't complaining, that's what living here is all about.

[RickM]

Fortunately we enjoy some of the lowest prices here in the Northeast. With NJ being the last mandatory Full Service state. Self Serve is actually illegal here.

From what I've seen the price is changed when a company rep advises the station operator. The operator doesn't have to abide by the advice...to a degree. The advisor will badger the operator if prices are not in line with the calculated trend.

[SRISER]

Self service is illegal to promote jobs...but it is the wrong kind of jobs...

[LeeH]

I worked at a discount convenience store briefly when I was between jobs once. Our pricing was $.05 under the lowest priced station within a 2 mile radius of our station. Honestly, that was how the price was set. We drove around twice each day and did a price survey - if the competition was lower, we dropped our price... if it was higher we raised our price.

[RickM]

And it's amazing that people will go 5 miles out of their way to save that nickel per gallon....or $.02 for that matter.

Gas price increases are a Bush/Cheney conspiricy set up to line their pockets after their crushing defeat this fall.

[84porsche]

I know a few gas station owners and they have mentioned that they are forced to increase their prices when then purchase the gas - for example they get charged when the gas is put on to the truck that is delivering to them so if the prices change with a few hours they still get charged the higher prices. They have to make a certain percentage per gallon in order to keep the station running so when prices are high they don't make more money but less money. Think about it - if gas is cheaper, people will spend more on convenience items and more on gas. They will travel more etc.

[widebody911]

The last time I was at Thunderhill, the price of 100 octane went up 20 cents during the course of the day!

[araine901]

Yeah, Its Bush's fault. Everything is. They went to Iraq to steal oil so they could charge more for gas and cause a fedral investigation and get caught stealing and rasing prices. If fact this MTBE crapy gas we have in the summer thats Bush's fault too right. My car needs new tires thats bush's fault too right.