Virginia Gas $2.17 this morning

[wakeme2008]

All week the price of gas here has been dropping. Funny how Congress is looking into the price of gas, and in the State most of them live and buy gas, it is getting cheaper by the day. Maybe my :tinfoilhat: is too tight. :)

[bahrbearian]

1. $2.59 here in the Nortwest. Still that's cheaper than I'd expect.

[OneTwentyoNine]

2. A barrel of oil is down about $10.00 since Labor day

Lets hope a shit load of those speculators that run up the oil prices got the hell burnt out of them when they bought a bunch of oil at $70.35 per barrel.

Gas is at 2.08 here in Wichita,below 2.00 in Oklahoma. Their state fuel tax is about .08 lower than our so they always can sell for less.

[bahrbearian]

3. So is it just the Red States with Cheaper Gas?

Are we just trying to keep our base, who is it really getting rich on oil? evidenty not the speculators but the oil guy.

[RedCloud]

4. You don't suppose that governor's race is too tight?

They wouldn't just lower prices to trick people into feeling good to vote red before royally screwing them red, would they?

[RockaFowler]

5. OMIGOD

We are paying $2.80 to $3.00 per gallon here in Hurricane Wilma area. They are gouging us people . . .

[LostinVA]

6. Where in VA? It's $2.59 in Central VA

[wakeme2008]

9. Roanoke

:)

[Va Lefty]

13. $2.20 in Harrisonburg

[LostinVA]

18. Still $2.59 Charlottesville, Saturday am.

[ozarkvet]

7. My 7-11 manager experience

Helps once again. LOL (My first post on DU was on this subject!)

I was a manager in a 7-11 for far too long. Crappy job, but that is a different story.

Anyway, the RETAIL price of gas is pretty fixed --- 5-10-12 cents above WHOLESALE price of the gasoline in the STORAGE TANK.

Gasoline (and beer and cigs), just so you know, are "loss-leaders." Basically, after all the expense of pumps, electriciy, etc., the store breaks even on them ---- hoping you go buy a "Big Gulp" or a candy bar or ice, which is basiclly pure profit. In short, while they are surely some gougers out there, because of competitive pressures, gasoline seeks a pretty low retail level.

Back to gas price going up and down: the price you buy at the pump is (this is oversimplified) markup over-and-above the wholesale price in the tanks --- which is made up of gas bought at different times. Say with a 10,000 gallon tank, 5,000 is at $1.85 wholesale, then 2,500 at 1.95, annd 2,500 at 2.00, you get a price at the pump of $2.02 (with a fixed .10 above wholesale price --- (1.85)(.5) + (1.95)(.25) + 2.00 (.25) + .10) Forgive my math -- I did that in my head, so there might be a problem, but you get the idea.)

Here is where the "goes up fast and comes down slow" events occur --- when prices are RISING people RUSH OUT and buy gas. Hence, the storage tank rapidly empties of cheap gas and expensive gas goes in.

When prices are dropping, nobody rushes out. In fact, they tarry on empty, knowing that tomorrow the price will likely be cheaper.

The same phenomina happens at the wholesale level --- at the retail level we would "top off" the storage tanks ASAP with cheap gas --- but then have inventories as prices dropped, so cheap WHOLESALE GAS goes away quickly, too.

Of course, as gas gets cheaper, we --- at the retail level --- wait until the storage tank is running dry, just like people with cars. (We want cheap gas, so you come in and buy that Big Gulp.)

Thick about this cycle a bit -- it feeds on itself, both ways.

In short, it is the same per gallon markup (or decrease) --- just compressed over time because of human nature.

So relax. No grand conspiracy. Just each human making rational decisions for his or herself, with a predictable group result.

[jackstraw45]

8. Trying to soften the Exxon $10 BILLION PROFIT in 3 MONTHS news...

We're being ROBBED and a few weeks of LESS egregious prices won't sway me.

[SaintLouisBlues]

10. Dropping fast here as well. Down to $2.27 in St. Louis

[silvershadow]

11. It has been steadily going down here for 2 solid weeks and

that hasn't happened for MANY months. It was 275 here 2 weeks ago, and drops several cents EVERY day. Now at 237.

[Centrism]

12. I got a feeling.....

it getting up again and higher this time

[Stinky The Clown]

14. This is a pattern ... started during Carter's administration

Jack up prices to astromnomical levels

Gouge and windfall

We squal, but no one listens.

They get the bonus they want

Prices drop to where they want them to be.

Move on

Wait five to ten years

Repeat.

Government plays the 'investigation game' at some point just to look like they give a shit.

Its all a fucking scam. Always has been. Always will be.

[lpbk2713]

15. The oil companies can afford to taper off. They are making record profits.

Not just record profits for oil companies but for all major industries.

Link: http://www.mercurynews.com/mld/mercurynews/business/13019064.htm

This could only happen under the Boosh administration.

[Tracyjo]

16. $2.39 a gallon in my part of Va. n/t

I think they should drop it another dollar.

[all.of.me]

17. it only went down 10 cents in northern nm to 2.89