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Gas price question

Discussion in 'The Lounge' started by MTBLAZER89, Apr 25, 2006.

  1. MTBLAZER89

    MTBLAZER89 3/4 ton status GMOTM Winner

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    I was thinking about this the other day while I was filling the Crew cab up:crazy:

    Here is the question

    example

    Sunday the gas station buys gas for 2.85 a gallon.

    Gas prices are at 2.90

    Gas station is making .05 a gallon right.

    Monday gas goes up to 2.96

    Tuesday gas goes to 2.98

    Wednesday gas goes to 3.00

    Thurs gas is up to 3.04

    Fri is up to 3.07

    So figuring if the gas station makes it 5 days without having to refill their tanks. The gas stations profit is up to .22 instead of .05 :confused: I don't know all the inner workings of the gas stations and profits, but how does that work? My numbers are pretty accurate from the gas prices here last week. I don't know how often they fill the tanks at the gas station but I am guessing once a week prolly.

    Anyway just my random thought for the day.

    P.S. 454's get bad mileage whether you drive them like grandma or whether you drive it like you rented it with insurance:crazy:
     
  2. big dan

    big dan 1/2 ton status Premium Member

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    I work at a gas station. they fill the tanks once or twice a week depending on how much they sell. your right about your figures. When they find out gas is going up they raise prices accordingly without refilling their tanks. so if they buy the gas for 2.85 and sell it for one day at 2.90 making a .05 profit. then the next day the gas company calls and the price has raised to 2.90 then the gas station sells it for 2.95, now they are making .10 a gallon and so on until they refill their tanks and will start over making .05 a gallon again. so everytime the gas prices go up, most likely the gas station is still selling you the gas they got a cheaper price for the price of the more expensive gas that they havent even bought yet. does this make sense? I hope I didnt confuse anybody.
     
  3. tiger9297

    tiger9297 1/2 ton status

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    I was listening to Glenn Beck this morining on the radio and he was saying (I don't know his source) that the oil companies make about .07 profit on a gallon of gas. However, the TAX (what the gov. makes) on a gallon of gas is .70!!! :eek1: Talk about price gouging. I get so sick of the politicians calling for "investigations", which are nothing more than "dog and pony shows" when they are the ones that should be investigated. I agree the oil companies make insane profits but the government is over taxing the people to a degree that we cannot even fathom.
     
  4. big dan

    big dan 1/2 ton status Premium Member

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    Yeah alot of people give us crap at the gas station for the high prices but I talked to the owner and she said that she only makes about .02-.03 a gallon most of the time.
     
  5. MTBLAZER89

    MTBLAZER89 3/4 ton status GMOTM Winner

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    Yeah that makes sense just wondering. I guess it's not as tramatic if gas goes up .15 in a 5 day period as it is to go up that .15 when they fill the tanks.


    Thats another thing that gets me the tax thing. On the base we aren't supposed to pay the taxes on the gas, but it's only ~.04 cheaper on the base. I guess there is some agreement not to undercut the local business:rolleyes: so the gas station on the base must be banking. So much for our exchange priveleges:wink1: :rolleyes:
     
  6. smalltruckbigcid

    smalltruckbigcid 1/2 ton status

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    Gas is a commodity, which means retailers will sell it for the replacement cost or to make a profit, whichever is higher. So if the street price is $2.90 and it cost them $2.85 in the storage tank and tomorrow goes up to $3.00 in the storage tank. Profit can get very skinny quickly.
    George
     
  7. draggbody

    draggbody 1/2 ton status

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    i heard the same thing and i am pretty sure that he said it was 7%, that was based on a $3 per gallon... even still that is only $.21.... this is what the oil companies make profit, ie exxon, shell, bp.... the local station is making the $.07... buy a diesel and make biodisel!!!!!
     
  8. blazinzuk

    blazinzuk Buzzbox voodoo Premium Member GMOTM Winner

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    Gas cannot be tax free. And government is not going to quit spending money on useless things so really not a whole heck of alot we can do about that, so if gas is 3 bucks a gallon and the refiner makes 21 cents the station makes 5 cents and tax is 75 cents thats $1.01. According to this logic the middle man can't be making more than 5-10 cents a gallon, so we are up to $1.11. So the cost of refining and transport etc is $1.99. I have never seen a breakdown of prices. This is not fact just what I have observed, the bottom line is if the market will support the price someone will come up with a reason, however weak or lame, that has caused gas prices to raise. If we do not reduce consumption prices will continue to rise, and excuses will continue to come about who is screwing us, the poor consumer. We have the power to change gas prices but not enough poeple are willing to cut their consumption. If the market will not support the price then the price will be reduced, refiners, gas station owners, and everyone else that depends on fuel (as a product)will find a way to reduce costs if the consumption goes down.
     
  9. 89GMCSuburban

    89GMCSuburban 1/2 ton status

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    Very true, some stations break even or even lose money on gas as well. They're counting on you coming inside to buy the $1 candy bar and $4 gallon of milk to make their profit.
     
  10. blazinzuk

    blazinzuk Buzzbox voodoo Premium Member GMOTM Winner

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    So true I almost always will buy at least a soda when I get gas
     
  11. draggbody

    draggbody 1/2 ton status

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    according to Beck; on $3/gal. our ararb friends get $1.61 of it. gas prices will never come down; we have 2 huge fast growing economies emerging: china & india, never can get enough.
     
  12. tiger9297

    tiger9297 1/2 ton status

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    Yea its amazing how much power the oil industry has worldwide.
     
  13. K5er4Life

    K5er4Life 1/2 ton status

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    That its Im buying a Prius...yeah right I will still drive my 454 carbed crew cab dually suckin gas.....ehhh.....not really hauling ass.
     
  14. R77K10

    R77K10 Banned

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    buying the least amount of gas possible is what we need to be doing really

    around here alot of the small gas stations have turned into repair shops and/or stores and gotten away from the gas game


    alot of them did it a couple years ago when updates were needed to be done to tanks and pumps, most quit dealing with gas right then

    and now since then most of the gas stations left were bought up and are run by Indians all of a sudden, all except a couple

    hmm
     
  15. big dan

    big dan 1/2 ton status Premium Member

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    the place I work at recently had to update the pumps and she would have just left them but its like what was said about the candy bars, people stopping to buy gas come in for food and thats where they get their money from.
     

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