And meanwhile, wholesale gas has dropped 50%...

[lelgt60]

Back in June, wholesale price for unleaded gas was about $3.60 a gallon. As of 1 minute ago, it was $1.81/gallon.

Now there is a justifiable difference between what you pay and the wholesale price: taxes, transportation costs, cost to pay gas station employees, some reasonable profit for the distributor and gas station (< 0.10 per gallon?).

But still: It's should be proportional. If the wholesale price drops 50% so should your price. Has it even come close? We're still paying 3.80 in NC. Clearly someone is using the cover of the wall street crisis to rip us off for even more billions.

Don't let this issue fade!

[Tandalayo_Scheisskopf]

1. You are absolutely correct.

The ripoff at the retail level is glaring. I would suggest you call your governor's office and the office of your state's attorney general and ask some hard questions.

[MadHound]

2. That is one bright spot in this madness

Gas is currently dropping like a rock. Yesterday it went down twenty cents/gallon in my neck of the woods. The gas people up and down the line are scared that Americans will stop driving, use less heating oil, etc. etc., and they're right. So finally some relief on that front, for awhile, though here in a couple of weeks I think the prices will bottom out and hold fairly steady for the winter. That's when I'll buy my gas for next summer's mowing season.

[Jackpine Radical]

9. Might be a good idea to put gas stabilizer in your mowing gas

if you plan to store it a long time. It's cheap compared to gumming up your engine with the crap that precipitates out of old gas.

[kestrel91316]

3. I think retail here has dropped no more than 30% since the peak.

[aint_no_life_nowhere]

4. I paid $3.49/gallon yesterday in southern California

The price has gone down a bit, but not enough to make a real difference. And I don't think California prices are affected by the recent hurricanes, as our refineries are local.

[FreakinDJ]

5. Deflation is systemic of a "Depression"

and all the Freeptards posting here said I didn't know what I was talking about when I predicted a "Depression" 1 yr ago

[virginia mountainman]

6. It takes about a month..

...For the wholesale prices changes, to be reflected at the gas station, those are the price at the "refiners tap" so to speak, and those numbers you are looking at are before the many taxes..

As for the profit per gallon, most local stations, where I live, only make about nickle a gallon...and they make even less than that if you pay with a credit card, or debit card.


When it rockets up, like during hurricanes, it is mainly because of massive hoarding slashing supply. I know this, as I am very close to the industry.

[Roland99]

7. Anecdotal tale for Louisville, KY and relationship of RBOB (wholesale) to Retail

Until this past spring, Louisville retail prices averaged 40-60 cents/gal over RBOB (wholesale).

After spring, it went to 80-90 cents/gal.

After Ike hit, we jumped to $1.00 - $1.20/gal over.

RBOB is now $1.82 so we *should* be at $2.45/gal TOPS here in Louisville.

Our LOWEST prices are in the $3.09/gal range.



GOUGING!!

[virginia mountainman]

8. Not really..

The gouging your speaking of is caused primarily by strained refinery capacity. And most states wanting "custom blends".

Right after Ike, the distributer price of unleaded fuel, hit $5.50 for a few days...most stations in my area refused to purchase it at that price, and most went dry for a few days... I don't blame them.

[Roland99]

10. The aftereffects of Ike should have worked their way by now.

and that doesn't explain why things were worse starting in the spring than they have been for the last 3-4 years.

[Hannah Bell]

11. oil futures under $80, too.

Nymex Crude Future 79.25
Dated Brent Spot 73.78
WTI Cushing Spot 77.75

[Igel]

12. It's not proportional. And it shouldn't be.

While the wholesale price might drop by 50%, transportation costs aren't going to drop by 50% (think of the cost of maintenance and wages). The cost to the retailer isn't going to drop by 50% (he still has his income to think about and wages for his employees, property taxes and utilities, maintenance and any loans he has to repay, etc.).

The state and federal taxes on a gallon of gas are in terms of cents per gallon, not a percentage, so if the wholesale price dropped to $0.01, the taxes wouldn't change.

Perform the same math on where you work. If the raw materials that your employer buys drop by half, does that mean your wages should drop by half? Does it mean that the cost of electricity and other supplies should drop by half?

I think the cost should come down more than it often does; but I can't expect the retail price to track the wholesale price.

[aint_no_life_nowhere]

13. What was the average cost per gallon before, when oil was at about $80/barrel?

I'd be curious to know.

[lelgt60]

14. Of course, I was just trying to keep it simple...

It's not proportional, but: Fact is, Wholesale prices are down $1.80. If taxes, transportation costs, distribution costs and profit stayed the same, retail prices would be down $1.80.

So supply crunch or not, somebody's profit is way up.

[lelgt60]

15. BTW, A great technical oil/gas site: www.wtrg.com n/t