Gasoline price jump???

[sns2]

Sundancefisher... You obviously don't have to answer, but I sure would be interested in knowing what you do for a living to have such knowledge, and such vigor to defend gas pricing practices. Just curious as about half the posts on this thread are yours.

[raab]

Originally Posted by Sundancefisher

Exactly. Plus gasoline is not owned by the consumer until purchased. If. A retailer wants to make 5 cents a litre profit instead of 3 cents it is their right to see if anyone will buy.

In turn consumer can choose. If one company has a lower price and they are scooping too many customers away from another then they need to assess should they drop the price down or not.

If a competitor raises their price they can decide to either keep the price low and try and scoop customers or raise their price to try and get that little extra profit.

Same as if a company has inventory left at a lower price they can keep price steady or raise it to try and garner that tiny little extra profit.

People seem to think they deserve extraordinary power over retailers to make them lose money even.

Consumers exert maximum power with where they spread their money.

The problem is not even the retailers, if they were gouging at 50% Id blame them. They only have 10-12% markup to play with, so not making a ton off fuel.

[raab]

Originally Posted by HVA7mm

I don't recall expecting a gas war, simply reminiscing. And I do realize that market fundamentals have changed, but so have marketing strategies. I did fail to see how fuel in a province with a higher combined tax/carbon levy, that requires a 1200km round trip from Edmonton could be less expensive than in Edmonton, unless every gas station owner in that town was in the money losing business. Like I said before, it's what the market will bear for gasoline and almost every other commodity.

I'm not really that concerned as my fuel usage is pretty minimal compared to many others on this board. In all actuality seeing all of the fuel prices emblazoned across the city has more of a psychological on most people effect than anything else. (ie $5 coffees, $3 bottle of water don't seem to faze people near as much as fuel prices)

Im not sure what town your referring to, but Regina has a refinery. So transport costs would be low.

[raab]

Originally Posted by Scott h

Actually it went up to $1.47 almost over night. Soooo.....

Less supply, and increased demand. Several refineries on shut down and Parkland refinery taking longer then expected to get back on line in the lower mainland.

[HVA7mm]

Originally Posted by raab

Im not sure what town your referring to, but Regina has a refinery. So transport costs would be low.

I was talking about Dawson Creek, B.C., as I was up there at Easter.

[Sundancefisher]

Originally Posted by raab

The problem is not even the retailers, if they were gouging at 50% Id blame them. They only have 10-12% markup to play with, so not making a ton off fuel.

Yup

One can look at the whole gasoline value chain to see that no company is gouging. Anyone can visit google finance. All private companies drop trousers on what they make. None are making great profits and none will be a solid investment. Making money in oil and gas is extremely tough.

[Scott h]

Originally Posted by raab

Less supply, and increased demand. Several refineries on shut down and Parkland refinery taking longer then expected to get back on line in the lower mainland.

That makes sense , but to go from $1.17 to $1.47 in 2 days seems a bit more than the honest market at work in this case.

[Ken07AOVette]

Originally Posted by Scott h

That makes sense , but to go from $1.17 to $1.47 in 2 days seems a bit more than the honest market at work in this case.

Oil was what $165bbl in 2008 and gas was $1.37, now it is $70bbl and gas is 1.37....

In a word? You know it

[gunluvr]

Originally Posted by Ken07AOVette

Oil was what $165bbl in 2008 and gas was $1.37, now it is $70bbl and gas is 1.37....

In a word? You know it

THAT is where there is a mystery. One could understand a little inflation over 10 years, but a 120-ish% increase in retail price over raw materials cost? If oil ever gets back to $120/bbl., gas will be...well, you can only guess.

[Sundancefisher]

Originally Posted by Ken07AOVette

Oil was what $165bbl in 2008 and gas was $1.37, now it is $70bbl and gas is 1.37....

In a word? You know it

You know what. You don't listen. You know nothing. You live in a world of evil oil company conspiracy theories.

You won't listen again and quite frankly no one cares. Still for those listening Ken clearly understands nothing about where gasoline comes from and how it is made nor what commodity pricing is.

Maybe a business course would help but many are getting sick and tired of the same old broken record that facts get glossed over.

Factors impacting pricing.

What percentage of a barrel of oil gets made into gasoline. It changes depending upon the committee values of other products. That impacts supply.

Supply...impacted also by many gasoline varieties. Guess the amounts wrong and a supply imbalance is created. Impacted by operational downtime of many pieces from transport (rail strike) and turnarounds and shutdowns planned and unplanned.

Demand...varies by regions and varies with time and date.

Commodity pricing varies with many factors...please read up as it goes from simple to complex from shut downs to political strife in the Middle East.

Companies aren't making crazy unfair profits. Shut the frig up or get off your azz and show us these miracle companies we should all invest in. Get off you Internet high horse of slamming the oil industry in Alberta or move the hill to Vancouver and tie yourself to a fence.

And yes...companies are in a business to make money...not supply your toys with free power. Anyone disagreeing can either prove an unreasonable profit or move to Cuba where everyone gets paid the same.

There are many steps in the gasoline value chain. Oil company drills and completes a well and hope it can make a profit. Service companies hope for a share to make money. Transportation companies hope to make money. Refiners hope to make money. Truckers hope to make money. Gas stations hope to make money.

Font forget both provincial and federal governments have a huge chunk of money from each litre you pump. Wanna get crotchety...call your MP and ask for a tax reduction.

I am tired of the constant nonsense. Get over yourself Ken. I will continue to stand up for facts and truth against your endless wave of oil company hate mongering over gasoline.

[gunluvr]

Originally Posted by Ken07AOVette

Oil was what $165bbl in 2008 and gas was $1.37, now it is $70bbl and gas is 1.37....

In a word? You know it

You seem to have all the answers. You haven't explained this yet.

[sns2]

I think people have likely made up their minds on this one and it has hit the ditch anyhow. Closed.