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Started By
Message
re: Gas price in Mid-City is 99 cents a gallon
Posted on 3/31/20 at 5:37 am to White Roach
Posted on 3/31/20 at 5:37 am to White Roach
Go buy your own barrels
0
Posted on 3/31/20 at 5:49 am to White Roach
Two scenarios where you have a widget that is in high demand:
1) You buy a widget for $100. The widgets on the shelf at the store move to $200. When you resell your widget are you going to sell it for $100?
2) You buy a widget for $100. The widgets on the shelf at the store move to $50. When you resell your widget are you going to sell it for $50?
1) You buy a widget for $100. The widgets on the shelf at the store move to $200. When you resell your widget are you going to sell it for $100?
2) You buy a widget for $100. The widgets on the shelf at the store move to $50. When you resell your widget are you going to sell it for $50?
Posted on 3/31/20 at 6:39 am to td1
Diesel is the only product moving. Someone has to haul all that toilet paper to the hoarders.
Gasoline and Jet Fuel are overflowing, virtually no demand. And won’t be for awhile. More refinery shutdowns appear likely. I’m sure that breaks Bel’s heart.
Gasoline and Jet Fuel are overflowing, virtually no demand. And won’t be for awhile. More refinery shutdowns appear likely. I’m sure that breaks Bel’s heart.
Posted on 3/31/20 at 6:44 am to sweetwaterbilly
There are always those one or two gas stations that has the price 20-30 cents higher than every other station in town.
Posted on 3/31/20 at 7:57 am to White Roach
quote:
I stand corrected! If history is any indicator, the price of oil moving up has an immediate effect at the pump. However, bizarrely, the price of a barrel of oil has dropped over $25 in the past month, yet gas at the pump has moved only 10¢ per gallon. It's a mystery as to why.
Oh, wait a minute, I've solved the mystery. They're fricking us because they can. Now I get it!
Who is “they”?
A few things at play here:
1. Usually when reports come out about oil prices increasing or decreasing, they are talking about futures rather than spot prices.
2. It takes quite some time for those changes to actually hit the refineries. They enter into contracts months in advance in some cases.
3. Most importantly, the price of oil is not the only thing that affects the price of gasoline. You also have to consider:
- The cost of refinery operations
- Transportation and marketing costs
- Taxes
- Ethanol
Here’s a graphic from the EIA:
Do the math.. if crude oil makes up 54% of the price at $2.60/gallon, that means 46% ($1.20/gallon) has nothing to do with crude prices and should be close to the floor if refineries are operating at their normal profit margins. Taxes are fixed. Refining costs are close to fixed for all intents and purposes. Distribution costs go down with the price of diesel. The lower the crude oil price, the less impact it has on the price of gasoline.
It’s likely that gasoline at $0.99/gallon is selling at close to zero profit margin due to low demand.
This post was edited on 3/31/20 at 8:00 am
Posted on 3/31/20 at 8:02 am to John88
With current crude price at $21/bbl and the gas crack at $3/bbl, refiners are selling gas to distributors at $0.57/gal today. Throw in $0.05/gal for transporation and you're at $0.62/gal. $0.384/gal state and fed taxes and you are right at $1.00/gal.
Anything higher than that is distributors trying to capture some of their lost inventory value in the sudden price drop. The low prices will start with a station or two that buys directly from a close by refinery...distributors will eventually have to follow but will hang on as long as they can.
Anything higher than that is distributors trying to capture some of their lost inventory value in the sudden price drop. The low prices will start with a station or two that buys directly from a close by refinery...distributors will eventually have to follow but will hang on as long as they can.
This post was edited on 3/31/20 at 8:04 am
Posted on 3/31/20 at 8:58 am to Loungefly85
quote:
That is not good. At all. And I’m in a job that is oil price proof. Once this virus shite passes we’re still in a world of hurt. Thanks communists and Muslims for making an awful year.
I don’t know why this person is getting downvotes. All he’s doing is calling a spade a spade. Saudi Arabia and Russians are having a dick measuring contest on who can hold out longer selling oil for $20 a barrel. I guess those two dumb arse countries are allergic to making money. Cheap gas is nice when you are a starving college kid. However, this cheap arse gas fricks Louisiana’s economy up on so many levels. You think your job isn’t impacted by the price of oil. Everything in Louisiana is impacted by oil.
Posted on 3/31/20 at 9:02 am to sweetwaterbilly
quote:
Meanwhile it’s probably still $2.50 at that Bocage gas station in Baton Rouge. Those frickers
I've lived in this part of town for over a decade, and I still can't figure that shite out. If someone built a gas station with "normal" prices somewhere between there and Essen on the same side of the road, they would print money.
Posted on 3/31/20 at 9:21 am to lostinbr
Thank you for the well thought out and articulated response. I know there are variances in local markets. Several posters have mentioned the gas station outside of Bocage, where trophy wives don't care how much gas costs.
My beef is that I can go 20 miles east on I-12 to Slidell or 20 miles west to Hammond and gas is at least 10¢ a gallon cheaper. Why?
I can't believe it costs a tanker that much more to travel from Norco or Baton Rouge to Covington. All other costs are the same. So I come to the conclusion that the local station owners are colluding to fix the price of gas. They're fricking us because they can.
My beef is that I can go 20 miles east on I-12 to Slidell or 20 miles west to Hammond and gas is at least 10¢ a gallon cheaper. Why?
I can't believe it costs a tanker that much more to travel from Norco or Baton Rouge to Covington. All other costs are the same. So I come to the conclusion that the local station owners are colluding to fix the price of gas. They're fricking us because they can.
Posted on 3/31/20 at 9:22 am to John88
I’ve seen it as low as 1.59 in Lake Charles
Posted on 3/31/20 at 9:37 am to White Roach
The North Shore Sucks, way to expensive to live over the lake
Posted on 3/31/20 at 10:26 am to White Roach
quote:
I can't believe it costs a tanker that much more to travel from Norco or Baton Rouge to Covington. All other costs are the same. So I come to the conclusion that the local station owners are colluding to fix the price of gas. They're fricking us because they can.
You’re talking about the higher cost of living in a relatively wealthy area, and it is by no means specific to gas prices.
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