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Related: About this forumHEARING ON "GOUGED AT THE GAS STATION: BIG OIL AND AMERICA'S PAIN AT THE PUMP
HEARING ON "GOUGED AT THE GAS STATION: BIG OIL AND AMERICA'S PAIN AT THE PUMP(Started at 10:30 am EDT)
Historic NY
(37,452 posts)most pumps are at 3.86 , but I still see some displaying 4.12 + and they all get delivered by the same company's terminals.
[link:https://gothamist.com/news/a-gas-tax-reduction-in-new-york-is-on-the-table-hochul-says|]
JohnSJ
(92,320 posts)see the reception this thread gets
2naSalit
(86,736 posts)what makes the difference is what the market price at the moment the product is sold to the distributor who dispenses the product to the gas stations. Each gas station owner buys the gas at the price is sells at the moment the transaction takes place.
The whole market on a local basis, say southern California, there are many refineries and tank farms holding numerous products. When a gas station owner calls for and order, that is the transaction moment for the gas station and the price is set by the global and local markets at that moment.
There is often a middleman too, the transport operation who brings the gas to the gas station, that's the kind of operation I worked at for a spell as a driver and dispatcher where I learned all this. The gas station calls the carrier who goes to the dispensing facilities and buys the gas then resells it to the gas station... all of this sets the price for each station on the base level, then the gas station owner decides how much they need to make off the gas and then sets the price from that formula of cost and expected profit. The gas station usually makes very little on gas sales in the end, they get their profits from the convenience store sales and anything else they offer as a service, the gas is what brings in the customers who end up buying other stuff.
It's a filthy business from start to finish and everywhere in between.
Historic NY
(37,452 posts)[link:https://www.globalp.com/|]
They bought up every terminal and company here on the Hudson River. Yards are full of idle tankers, and only certain terminals are being used. From my view they are slowing it down.
2naSalit
(86,736 posts)The whole trade system is one of those day trader scenes. I have both behind the wheel and at the desk seen prices jump in a heartbeat.
As a driver, I had two wallets with refinery access cards (like credit cards but with holes punched in them) that I needed to get into the refinery and load the product. One wallet was full of driver's cards that I kept with me at all times, these identified me at the gate and the loading rack when I was starting to load the gas.
The other stayed with the truck, each card belonged to an account through which my employer bought gas from whomever the seller was. I was told by dispatch which buyer's card to use for the load. Most refineries in the 1980s had computerized pumping systems and one card from each wallet was required for the product to flow from the tank into the truck for security purposes.
During transitional market spells I could load one chamber with one buyer's card and load other products with other buyer's cards all at the same rack if that was what our buyer had arranged. My paperwork consisted of record of net and gross weights and tank stats upon delivery, nothing with a $ showed on anything other than cash sales at little resorts and that amt. was given to me by dispatch.
There are so many ways the price rises on its way from the refinery to your gas tank that it boggles the mind from slowing distribution to watering down the gas with naptha (25% + 10% grain alcohol) can shave a lot off your costs from the refinery. It was a thing back in the late 80s.
It's just such a dirty business that is bringing the planet to ruin, we have little time left to stop our ejection from the planet, unless some drastic changes take place right away, we're doomed.
I'm sure it functions similarly on the other side of the refinery as well.
Rhiannon12866
(205,731 posts)Diesel is another story, well over $5 most places.