It's the economy, stupid!

[edible_hat]

The price of oil hit a 13-month low last night! Which was all that some people needed to whinge about petrol prices. Specifically, they accused us of profiteering because the price of petrol didn't also go down to a 13-month low overnight.

These people fail to understand that we have to sell the stuff we bought at the higher price before we can buy some at the low price and pass the savings on. Also that 13 months ago the Australian dollar was worth 90-something US cents and it's now worth 60-something US cents, so it won't go that low in Australian money terms anyway.

[tropicsgoddess]

Ah did not have sexual relations with that woman.

*cookies for the references

[Bramblerose]

If it would do any good, I would suggest the remind them that the oil barrel price doesn't hit the pumps for ~6 months.

[Racket_Man]

Ah did not have sexual relations with that woman.

*cookies for the references

Slick Willy Bill Clinton although I guess he thought..... naaa I won'tgo there

[Jbball]

The price of oil hit a 13-month low last night! Which was all that some people needed to whinge about petrol prices. Specifically, they accused us of profiteering because the price of petrol didn't also go down to a 13-month low overnight.

These people fail to understand that we have to sell the stuff we bought at the higher price before we can buy some at the low price and pass the savings on. Also that 13 months ago the Australian dollar was worth 90-something US cents and it's now worth 60-something US cents, so it won't go that low in Australian money terms anyway.

Isn't if funny how that works.

Price of oil goes down, gas prices take a long time to go down, stating that they bought it at higher price and have to charge accordingly.

But, when the price of oil sky rockets, gas prices jump up immediately, and gas stations DO profiteer off them, as they bought their gas at a lower rate a week ago than it is today.

Gas stations are bs. Just out to rip us off like everyone else.

When hurricane Ike came through Texas, the price of oil jumped $.50 cents in a matter of hours. One station was actually charging over a dollar more a gallon. The oil platforms shut down, and everyone drives up their prices by $1 a gallon, even though they bought at a much lower rate.

[protege]

It's not the first time either--before the first Gulf War, some local stations were jacking up their prices on the *fear* factor alone. There was no fighting, no shortage...yet they thought they could get away with it

Getting back on topic, there are a few things which have kept prices up. The main one being increased demand in places like China. Their economy is changing--it's slowly moving towards capitalism. With the increase in trade, they've become more prosperous. With that prosperity, come things like cars, bigger homes, jets, etc. All of those things drive up the demand for oil.

There's only so much oil that can be produced. From what I understand, OPEC doesn't want to release more, since we don't have the capacity to refine it. In fact, one of OPEC's leaders was quoted as saying that. It's simple economics--demand goes up, so does the price. Now that demand is falling, it's only natural that the price comes down. Those price changes are passed along to consumers.

Oh, and don't even get me started on the damn oil speculators. When it first hit $100 a barrel, the guy who bought it there...simply did so...so he could *say* that he bought oil for $100 a barrel. Asshole.

[edible_hat]

But, when the price of oil sky rockets, gas prices jump up immediately, and gas stations DO profiteer off them, as they bought their gas at a lower rate a week ago than it is today.

This is my experience, and I work at a petrol station:

Pump prices follow a weekly cycle no matter what the wholesale price is. Half the time we make 1-3 cents per liter profit, half the time 1-3 cents per liter loss.
When the wholesale price goes up, the cycle's high is higher and/or the low doesn't go as low (depending on when it happened).
When the wholesale price goes down, the low is lower and/or the price doesn't go up as high.
A change in the oil price takes 2-3 weeks to get through to the wholesale price.
When the price of oil goes up the stuff that we bought at the lower price sells faster because people want to fill up before the price goes up.

That's the way it works in Australia.

I get enough idiots whinging about the prices at work, I didn't expect to get SC behaviour on here.

[Amethyst Hunter]

Oh, and don't even get me started on the damn oil speculators. When it first hit $100 a barrel, the guy who bought it there...simply did so...so he could *say* that he bought oil for $100 a barrel. Asshole.

I hope there is a special hell for that turdpatty.

[otakuneko]

Oddly enough, Ike barely affected the gas prices in the DFW area. Certainly nothing as dramatic as other places. Granted, we only got brushed by an extreme edge, but other places that didn't see so much as a drop of rain from Ike saw sharp price increases.

Go figger.

[SuperB]

This is my experience, and I work at a petrol station:

Pump prices follow a weekly cycle no matter what the wholesale price is. Half the time we make 1-3 cents per liter profit, half the time 1-3 cents per liter loss.
When the wholesale price goes up, the cycle's high is higher and/or the low doesn't go as low (depending on when it happened).
When the wholesale price goes down, the low is lower and/or the price doesn't go up as high.
A change in the oil price takes 2-3 weeks to get through to the wholesale price.
When the price of oil goes up the stuff that we bought at the lower price sells faster because people want to fill up before the price goes up.

That's the way it works in Australia.

I get enough idiots whinging about the prices at work, I didn't expect to get SC behaviour on here.

That's pretty close to how it is in the States. People really don't realize that the profit on gas for stations is just a few pennies per gallon.

[VenomX]

I once asked my boss how come he raises the price of gas when oil goes up but we still have the cheaper gas in the tanks.

His reply? If he didnt raise it then he would not be able to afford the next tanker full. Not sure how true it is but I do know we do not make much on gas. He goes around 3 or 4 cents above what he pays for it but then he has to pay his employees and then if someone uses a debit or credit card he actually loses money on the sell.

I have had a bunch of SC's the last 2 weeks because of the water company, look for my thread about it soon...

[Grumpy]

If it would do any good, I would suggest the remind them that the oil barrel price doesn't hit the pumps for ~6 months.

I don't think many people will buy that, since the price at the pump seems to go up the same minute the price of a barrel of oil goes up.

[smileyeagle1021]

I get enough idiots whinging about the prices at work, I didn't expect to get SC behaviour on here.

well at least in Utah we have reason to be SCs about it... despite the fact that we should have the lowest gas prices in the lower 48 (we have our own wells in southern Utah and 2 refineries on the Wasatch Front) we have some of the highest... so at least in this part of the country, yes, the gas stations are full of shit when they whine about their high prices, especially when I can go 2 hours either direction (Wyoming or Nevada) and see prices drop 30cents when they get their supply from the same place as Utah... yeah...
That said, I don't bitch to the person behind the counter, because I know they aren't the people getting fat off the greed.

[Broomjockey]

Okay, people. Let's reign in the the slinging and editorializing. If anyone else feels to make a comment containing words such as "full of it" "bullshit" "jackass" "rip off" "gouging" or "hoozamadoobers" then say it on Fratching.

[protege]

I hope there is a special hell for that turdpatty.

I'm sure he got nailed recently when the prices came down

Lately though, people (locally) are still bitching about the gas prices. In fact, when I was filling up one of the cars the other night, I got to hear some idiot outside complaining to the cashier. As if she can change the price