Gasoline Prices

[Dingfod]

Not meaning to be bragging or anything, but Tulsa has some of the lowest gasoline prices in the nation, partly due to Oklahoma having the lowest state gasoline taxes in the nation (and the worst roads and bridges by far. I guess you get what you pay for.). Today, regular unleaded gasoline is $1.79 a gallon. Four days ago it was $1.71, then it jumped 5 cents per day to hit $1.81 on Thursday. Then yesterday, at the same time as oil prices tapped $50 a barrel, gasoline prices went down by 2 cents. What is up with that?

Gasoline prices, even at today's higher levels, are a significantly lower percentage of travel expenses than they were at $1.20 a gallon back in 1982-83. Everything else has gone up significantly more than gasoline, drinks, meals, snacks, and lodging, let alone the price of automobiles and insurance, which are several times more expensive than they were twenty odd years ago. So, why do we bitch about gasoline prices now?


Warren

[Goliath]

Up here, gas was $1.69 for awhile...now it's up to $1.78.

[viscousmemories]

I don't have much to say about the OP 'cause I don't have a car. But the other day I was reading the newspaper and saw this article about the economy and they were like, "yeah, it's so bad that this here fancy restaurant that's usually hopping is totally dead, and oil prices are at near record highs!"

It was the first time I'd ever seen a reference to high oil prices used in a positive sense. So if the nearby George W. Bush turnpike didn't clue me in that I'm livin' in Texas now, that there might just've done the trick.

[Adam]

As we continue to see new record high oil prices, I'm torn between longing for the days when gas was under a dollar a gallon and recognizing that we (in America) already pay less for gas than the residents of most nations do. I suppose that this spring wasn't the best of times for me to stop driving my little Saturn and start driving a gas hog. It's difficult because, while I do understand that we use far too much gasoline in this country, I really love my gas guzzling Jeep, and it would be exceptionally impractical for me to get to most of the places I have to go without a car of some sort. This is another of those situations where I really don't see much changing without a concerted federal effort to mandate more fuel efficient vehicles, more commuter and pedestrian friendly cities, etc.

[Dingfod]

I don't have much to say about the OP 'cause I don't have a car. But the other day I was reading the newspaper and saw this article about the economy and they were like, "yeah, it's so bad that this here fancy restaurant that's usually hopping is totally dead, and oil prices are at near record highs!"

It was the first time I'd ever seen a reference to high oil prices used in a positive sense. So if the nearby George W. Bush turnpike didn't clue me in that I'm livin' in Texas now, that there might just've done the trick.It's a mixed bag for Texas and Oklahoma. The $6 to $8 a barrel oil prices of the mid-80s devastated the oil industry in both states. There were auctions of drilling equipment where the bids were below the scrap metal value of the equipment. Both states, more successfully in particular, Texas, began to court alternative industries, i.e. high tech manufacturing and business and corporate headquarters to shore up their economies and move it away from a declining oil industry. Oklahoma courted more low wage manufacturing than corporate giants to replace the ailing oil bidness.

Well, now that oil prices are in the stratosphere, you'd think there'd be a lot more money in the oil-driven Texas and Oklahoma economies, and there probably is, it's just not as noticeable now because it represents less of both of those state's economies. Also, oil industry consolidations have put the profits in fewer and fewer hands, often out of state or even overseas companies are reaping the benefits of the higher priced oil.

The high price of oil will inevitably lead to higher prices for everything due to increased heating and cooling costs, higher transportation costs, and on and on. One effect already has been higher gasoline prices, chilling any sense of a recovery in the businesses that depend on people having disposable income, such as restaurants. To put it simply, people are having to spend more on gasoline and therefor have less to spend on luxuries, like eating out.


Warren

[Shake]

Dad has pointed out before that prices seem to rise much more quickly than decrease. When things were really bad here, they'd go up several times in the same week. He said that is historically unheard of. He said it was odd how just as you were hearing about the per barrel price going up, gas stations would almost immediately raise their prices. But when that same price came down, the consumer costs would take much longer to follow suit.

Things seem to have levelled off here, with prices hovering right around the $2 mark.

[copiae]

Not meaning to be bragging or anything, but Tulsa has some of the lowest gasoline prices in the nation, partly due to Oklahoma having the lowest state gasoline taxes in the nation (and the worst roads and bridges by far. I guess you get what you pay for.). Today, regular unleaded gasoline is $1.79 a gallon. Four days ago it was $1.71, then it jumped 5 cents per day to hit $1.81 on Thursday. Then yesterday, at the same time as oil prices tapped $50 a barrel, gasoline prices went down by 2 cents. What is up with that?


I would suspect that the reason would be the latency period of oil distribution. It takes time for oil to distributed to the various petrol stations around the country, and the oil delivered is at the price paid, not at the current price. Petrol pumps then add thier set margin, and that is the price they charge.

I own an old Mitsubishi Magna, and that car does approximately 8 Kilometres per litre of petrol... um, gimme a sec here... ~5 Miles / Litre ... 18.925 Miles / US Gallon. Its got an old 2.6L 4 cylinder engine, which has about 100kW of power, I think. It also has that endearing trait of being at the age where getting into the car is an adventure in itself, because you don't know whats fallen out/nonfunctional.

Anyway, this car guzzles fuel, by todays standards. When this car becomes non-drivable, I'll probably switch over to a motorcycle or something.

[Dingfod]

Dad has pointed out before that prices seem to rise much more quickly than decrease. When things were really bad here, they'd go up several times in the same week. He said that is historically unheard of. He said it was odd how just as you were hearing about the per barrel price going up, gas stations would almost immediately raise their prices. But when that same price came down, the consumer costs would take much longer to follow suit.

Things seem to have levelled off here, with prices hovering right around the $2 mark.Perhaps the reason for that lies in this chain of events which lost my friend Craig his gasoline supply and eventually his business.

Craig owned a couple small convenience stores. One day Craig receives a phone call from Lenny, the gasoline distributor telling him to raise his prices. This wasn't unusual, but Craig had had it with Lenny's little price fixing games. Craig said no because he still had nearly full tanks after receiving a truckload earlier that day. Craig didn't think it was right to sell gasoline at a higher price when his inventory was purchased at the lower price, he just didn't believe that was the way to treat his customers. Lenny demanded he comply or he would get no more gasoline from them.

Craig did some checking, found a willing supplier from a town 90 miles away. The extra delivery charge would eat into his profits, but, the new supplier didn't care what price Craig charged for his gasoline; Craig was back in the gasoline business. Lenny catches wind of Craig getting gas from another source and lowers the price everywhere else in town to way below Craig's cost. Craig cannot afford to compete on that basis, so after a few months, Craig goes out of business altogether; no gasoline, no business.

Oddly enough, Craig had no recourse. Lenny just happened to also be the president of the state independent petroleum marketers association. Craig couldn't get anyone to turn evidence on the distributor because they were all scared of him. Lenny won, Corky lost. Evil triumphed over good once again.

The above is a true story so far as Craig related to me and what I knew about Lenny at the time. The names have been changed to protect the innocent, but I'm not sure why; it's been way over 20 years since this happened. I don't know where Craig is and Lenny is probably dead, either from a lifetime of chicken-fried steaks or just plain shot by someone for being a dick.

Sidenote: Lenny sexually harassed and then attempted to sexually assault my wife when she was a bookkeeper for him several years prior to the Craig's Convenience Store gasoline revenge caper. Lenny was an upstanding member of the community and deacon of the First Southern Baptist church, no way would anyone believe my 19 year old wife over Lenny. So, she didn't tell anyone, not even me. She quit Lenny's job right then and there, but I didn't find out why for several years afterward. Good thing, I suppose.

I'm absolutely certain the distributors tell the retail outlets what to charge to this day. If not, then why does everyone seem to change their price to the same price the same day?


Warren

[viscousmemories]

That's an interesting story and a fucked up sidenote, Warren. I suppose it was a good thing she didn't tell you for a few years. For your and Lenny's sake.

As to the gasoline game, I was just wondering about all of that as a result of Shake's and peer's posts. My first thought was "do the oil companies own the refineries as well?" and my second thought was, "wait a minute, don't they own the whole shebang?" I mean, the gas station at the corner is called Shell, or Exxon, or Mobil, and I know those are all oil companies. So are the harvesters(?), refiners, and gas stations all typically units of a single conglomerate?

So you've answered my question kind of. Although I'm still wondering if Shell oil and Shell gas station are the same company. :?

[Gawen]

Still a $1.68 here in Ft. Worth. I'm thinking of buying a few 55 gallon drums to fill up... :D

[Albion]

Around here the prices are just over $2 per gallon for regular unleaded but around $2.20 for supreme unleaded; they've been higher than that recently but have come down a few cents. I assume that might have had something to do with the reports about the way oil companies have doubled their profits since last year - don't want to appear too much of a powerful monopoly right before the election.

[seebs]

I drive a Honda Insight. I don't really notice gas prices. No, seriously; I probably get gas once a month, and it's "normally under $20".

[ceptimus]

In the UK, gasoline (we call it petrol) is currently 0.82 UK (GB) pounds per litre.

1 litre = 0.264172051 US gallons
1.00 GBP = 1.79256 USD

So we're paying $5.56 a gallon. Ouch!

[Dingfod]

Update: Gasoline at QuikTrip, right now, today? $1.64

[Goliath]

Update: Gasoline at QuikTrip, right now, today? $1.64

Lucky bastard. We're still at $1.75.

Oh and ceptimus: blech...that's just one reason why I never want to live anywhere other than the US (although I do want to visit Europe sometime...)

[livius drusus]

In the UK, gasoline (we call it petrol) is currently 0.82 UK (GB) pounds per litre.

1 litre = 0.264172051 US gallons
1.00 GBP = 1.79256 USD

So we're paying $5.56 a gallon. Ouch!

Gasoline cost around that much in Italy when I lived there in the 80s. That's how I explained the tiny cars to various distant relatives who came to abuse of our hospitality.

[Dingfod]

Lucky bastard. We're still at $1.75.

Oh and ceptimus: blech...that's just one reason why I never want to live anywhere other than the US (although I do want to visit Europe sometime...)It's even worse today: $1.61.

[Goliath]

It's even worse today: $1.61.

Well stop making gas chaper down there so I can catch up with ya... :wink: We're all the way down to $1.71 up here.

[Dingfod]

Well stop making gas chaper down there so I can catch up with ya... :wink: We're all the way down to $1.71 up here.That's just it. We make lots of gasoline down here. Being close to the supply ought to make it cheap, right?

[Dingfod]

It's in free-fall, $1.59 this afternoon. Six more cents and it'll the lowest price in more than a year. Is this a pre-election campaign contribution by the oil companies?