<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by Poseur:
I notice that as soon as the commodities market clicks up a cent, it is reflected at the pump in 3 seconds. However, if it the market goes down 30 cents, the price at the pump doesn't go down for 3 weeks! $##$@@!#
It's because the station owners will raise the price of gas with the market even though the gas in their tanks was purchased at a lower price. Once they refill those tanks at the higher gas price, they cannot lower their price much and make a profit on the gas they are holding so they must keep the price up even after the pricing goes back down until they refill their tanks at the new lower price. </div></BLOCKQUOTE>
Station owners are working from tank load to tank load. EACH fuel delievery is paid for or has to be paid for buy wire transfer in less than 24hours. Most tanks at stations are 20,000gals and each station might have 3. 2 tanks of 87 and 1 tank of premium. Not a whole lot of stations can turn over 20,000gals in a day when the average is only 100,000 to 150,000gals a month. Sure 1 station might be able to turn over 1,000,000gals a month but it is very rare.
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10-28-2005, 03:20 PM
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