As gas prices fall, station owners' profits rise(This will make you boil!)

[Divine Discontent]

http://www.msnbc.msn.com/id/11414134/

Gasoline futures have fallen 30 cents, or 17 percent since Jan. 30, while average pump prices have declined just 7 cents
Gas station owners in many parts of the United States are buying fuel at some of the lowest prices they’ve seen in a year, yet many are padding their bottom lines rather than passing along all the savings to motorists, industry figures show.

Nationwide, the profit margin on a gallon of gasoline has widened since the start of the year and now is 20.7 cents a gallon — almost double the historical average — thanks to the growing spread between wholesale and retail prices.

Antonio Tobar of Takoma, Md., said he was happy to see that regular unleaded had fallen about a nickel this week to $2.33 a gallon at his local Shell station. But it hadn’t occurred to him that the guy selling the gas was also benefiting.
“We have to pay what they say,” said Tobar, a 48-year-old handyman who spends anywhere from $40 to $100 a week to fuel his car and pickup truck. Still, he doesn’t begrudge the owner of the station for pocketing a few extra pennies here and there because “he’s not a rich guy.”

(snip)
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We get screwed no matter what! They figure, "aw, what the hell, they're already used to paying around 2.50-3.00 a gallon, they'll think a small drop is great!"

[Divine Discontent]

1. and I noticed this -----

that certain stations seem to fighting against other stations.

the afformentioned non-arab supplied station of Citgo is much lower than other station in my area, and, if I go into the busiest parts of town, gas is under $2, but as high as $2.29 just 20 miles away

[robbibaba]

2. Go Citgo!

I drive out of my way to buy gas from Venezuela's Citgo. I'd rather support Chavez.
(though our #1 car runs on biodiesel).

[brer cat]

3. Don't blame the person selling the gas....they are on the hook

The major oil companies control the price at the pumps. Citgo is an exception--it's not US owned. The "majors" dictate what the mom and pop shops charge by controlling the price to them. Many small operators get NOTHING for selling gas...money is made from beer/wine, smokes and other impulse buying.

[Dhalgren]

5. The article said that the average profit to the station owner was

over 20 cents a gal. If "many small operators get NOTHING for selling gas", then some "mom and pop shops" are making a killing...

[anitar1]

4. Or buy at Costco. We do not have Citgo here.

But Costco's gas is at least 10 cents less a gallon, sometimes more than that. Costco is all Blue.

[Divine Discontent]

6. thanks for the info about costco n/t

[Loge23]

7. "Futures" are not tomorrow

Of course everyone along the supply chain in energy is profiting. What galls me is the increased attention (a good thing) on oil futures. Notice how the flucuation is reflected at the pumps almost immediately?
Future prices don't take effect for months after the pricing.