I'm very curious why local gasoline prices are much higher than other areas in the state. Noticed that oil prices have fell more than 35% to the lower 90s from 147 and change. The future price this morning for gasoline is $2.40 when added to state and federal taxes of $.42 total $2.82 a gallon. So why isn't gasoline selling for around $3 a gallon? I understand from reading and listening to media that when Gas prices reached $4 that there was consumer resistance and retailers were unable to increase much about that level. I also understand that oil only represents 75% of the price of gasoline. From what I hear the oil rigs and refineries in the gulf are pretty much back online this week after Hurricane Ike. What I don't understand is why our local retailers don't attempt to compete with our gas retailers accross Kansas, it's pretty bad when you can buy gas on the turnpike cheaper than from our local dealers.
The reason gas prices are dropping now is because economist are expecting a global economic downturn with the recent bailout and slow devaluation of the dollar, among other things.
So in short, me2 is right, low gas prices are actually bad right now.
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"The best argument against democracy is a five-minute conversation with the average voter" -- Winston Churchill
I'm very curious why local gasoline prices are much higher than other areas in the state. Noticed that oil prices have fell more than 35% to the lower 90s from 147 and change. The future price this morning for gasoline is $2.40 when added to state and federal taxes of $.42 total $2.82 a gallon. So why isn't gasoline selling for around $3 a gallon? I understand from reading and listening to media that when Gas prices reached $4 that there was consumer resistance and retailers were unable to increase much about that level. I also understand that oil only represents 75% of the price of gasoline. From what I hear the oil rigs and refineries in the gulf are pretty much back online this week after Hurricane Ike. What I don't understand is why our local retailers don't attempt to compete with our gas retailers accross Kansas, it's pretty bad when you can buy gas on the turnpike cheaper than from our local dealers.
The gasoline market is a lot more complicated than you are implying. Futures are just that...futures. This is what the price is going to be. Fuel that is already purchased by wholesalers doesn't reflect this price. Local retailers don't have much play in the prices they pay for gas. Many of them already operate on very thin margins relying on people who shop in convenience stores to help make up for this. As for the turnpike, the turnpike is a major interstate highway. It is very easy to transport fuel on a non stop interstate while much more costly going down US 77 and slowing and stopping in all of the towns and cities along the way. Of course, I am replying after prices have dropped much further which reemphasizes my point about futures being a future price.
Thanks for the replies. Still wondering why E-85 (ethanol gas) is selling for 217.9 at our only local provider when it is selling for 1.399 in Lawrence.
Went to Tulsa today. Gas was $1.36 in Bartlesville and T town. Oil dropped over $4 a barrel Friday and gas goes up 10 cents here. We're not being gouged are we?????
The gas sitting in the tanks at the station wasn't purchases (nor made) with oil at the current prices, which may be why you see some lag behind gas prices. As for comparing prices of gas in other states with prices here, there really isn't a point, different states have all kinds of different taxes and other factors that go into the price of gasoline (especially the transportation of the gasoline, how far away the stations are plus any additional taxes that might be placed on intrastate transactoins).
Look at the bright side, gas is not 4 dollars a gallon.
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"The best argument against democracy is a five-minute conversation with the average voter" -- Winston Churchill
The wholesale price is the same all over & the refinery is 25 miles away. We pay 8 cents more tax than OK. Add 8 cents to a buck 36 and you don't get a buck 69.
