O/T Gas >>>>>>>
Moderator: Excalibur Marketing Dude
Chris
I'll try to give you an honest answer to your questions.......
First, a question........let's say I came over and borrowed your truck......at $1.15 litre, your tank holds $20 worth of gas and you filled it just before I picked it up........if gas jumps to $1.35 litre before I get the truck back to you, and I have used a full tank.......do you want me to fill the tank or just put in $20 worth of the higher priced gas????
A retailer decides what to charge based on his cost and what the market will pay.......he would be an absolute fool to charge less, for the gas he is selling today, than his cost to replace the gas when he fills his storage tanks tomorrow! That is why prices jump quickly and fall slowly........
It is simple economics..........you can't charge more than people are willing to pay.......at the same time, you can't lose money and stay in business...
I'll try to give you an honest answer to your questions.......
First, a question........let's say I came over and borrowed your truck......at $1.15 litre, your tank holds $20 worth of gas and you filled it just before I picked it up........if gas jumps to $1.35 litre before I get the truck back to you, and I have used a full tank.......do you want me to fill the tank or just put in $20 worth of the higher priced gas????
A retailer decides what to charge based on his cost and what the market will pay.......he would be an absolute fool to charge less, for the gas he is selling today, than his cost to replace the gas when he fills his storage tanks tomorrow! That is why prices jump quickly and fall slowly........
It is simple economics..........you can't charge more than people are willing to pay.......at the same time, you can't lose money and stay in business...
If the gas stations all charged $5/ liter what would you do? Give up your vehicle, I don't think so, we would be forced to pay it because many of us have to drive no matter what the cost is. When they have a monopoly, we pay or we go without. Gas prices will not fall, why would they? The Oil companies are making a killing and we are still buying it. The only thing that changes is we don't spend as much money on luxuries such as hunting trips, restaurants, toys, etc. The entire economy suffers.GonHuntin wrote:Chris
I'll try to give you an honest answer to your questions.......
First, a question........let's say I came over and borrowed your truck......at $1.15 litre, your tank holds $20 worth of gas and you filled it just before I picked it up........if gas jumps to $1.35 litre before I get the truck back to you, and I have used a full tank.......do you want me to fill the tank or just put in $20 worth of the higher priced gas????
A retailer decides what to charge based on his cost and what the market will pay.......he would be an absolute fool to charge less, for the gas he is selling today, than his cost to replace the gas when he fills his storage tanks tomorrow! That is why prices jump quickly and fall slowly........
It is simple economics..........you can't charge more than people are willing to pay.......at the same time, you can't lose money and stay in business...
The experts have been saying for years that at our current growth rates in countries such as China, we will run out of oil by 2050. There have been no “Major” oil finds since before 1950. This is just the start of high prices forever until an alternative fuel source at a reasonable cost is found.
My next car will have to be a real mizer. Do you think I can fit a buck on the roof of a smart car?
I am told that a grocery store cannot increase the prices of items that are currently on the shelves if there is a price increase on replacement stock. They can only increase the prices when the new stock is on the shelves. That is the way it should be at the pump!! When you get your new shipment of fuel increase the price. Not before. And certainly not because there might be an increase in the cost of a barrel two or three days from now. The gas retailers will not lose any money by doing it this way. And it's not like the gas companies don't have deep pockets to cover their initial "loss".GonHuntin wrote:Chris
I'll try to give you an honest answer to your questions.......
First, a question........let's say I came over and borrowed your truck......at $1.15 litre, your tank holds $20 worth of gas and you filled it just before I picked it up........if gas jumps to $1.35 litre before I get the truck back to you, and I have used a full tank.......do you want me to fill the tank or just put in $20 worth of the higher priced gas????
A retailer decides what to charge based on his cost and what the market will pay.......he would be an absolute fool to charge less, for the gas he is selling today, than his cost to replace the gas when he fills his storage tanks tomorrow! That is why prices jump quickly and fall slowly........
It is simple economics..........you can't charge more than people are willing to pay.......at the same time, you can't lose money and stay in business...
You can take the man out of the woods but you can't take the woods out of the man.
"Celebrate your harvest with a Bloodtrail Ale(tm)!!"
"It CAN Be Done!"
"Celebrate your harvest with a Bloodtrail Ale(tm)!!"
"It CAN Be Done!"
Al you must live in the "cheap" part of town, in my neck of the woods it was selling for $1.33.9 today. That's $6.08/ Imperial gallon.A.W wrote:It went up again in Ontario. Toronto this morning $1:27. Quebec is suppost to be $1:34....per litre.
Do you think they will lower the price of hunting licences to subsidise the hunters?
ComfyBear
Micro Axe 340, Matrix 380, Matrix 355, Matrix 350, Exocet 200
ComfyBear Strings
G5 Montecs 125gr., SlickTrick 125 gr. Magnums
To thine own self be true.
Remove thine mask Polonius.
Live thy truth, doth not be false to any man.
Micro Axe 340, Matrix 380, Matrix 355, Matrix 350, Exocet 200
ComfyBear Strings
G5 Montecs 125gr., SlickTrick 125 gr. Magnums
To thine own self be true.
Remove thine mask Polonius.
Live thy truth, doth not be false to any man.
It's no longer about supply and demand. They charge whatever the market will bear. Unlike the US, Canada doesn't depend on Arab oil, and if the truth be known, it has oil/gas galore, yet because of taxes, greed, and that Joe Q. Public is willing to be gouged, the price of gasoline is higher in Canada than the US.chris4570 wrote:How? How is it that gas prices are $1.26/litre in the morning and $1.13/litre 12 hours later on the way home? The gas in the in the holding tanks is surely the same. Gas companies are just as bad as the looters, taking advantage of a horrible situation to line their own pockets more than they already have.
ComfyBear
Micro Axe 340, Matrix 380, Matrix 355, Matrix 350, Exocet 200
ComfyBear Strings
G5 Montecs 125gr., SlickTrick 125 gr. Magnums
To thine own self be true.
Remove thine mask Polonius.
Live thy truth, doth not be false to any man.
Micro Axe 340, Matrix 380, Matrix 355, Matrix 350, Exocet 200
ComfyBear Strings
G5 Montecs 125gr., SlickTrick 125 gr. Magnums
To thine own self be true.
Remove thine mask Polonius.
Live thy truth, doth not be false to any man.
Surely none of us are thrilled at the prices we are seeing now, but what is resonating clear as a bell everywhere is the lies and deceit we must hear and bear from the oil companies. I don't think a person out there believes the BS they are spewing.
An interesting note I heard from a police neighbor friend...he says Candian tire cannot keep enough red gas cans and siphoning kits on hand!!!! With the price of gas going up and up, gas theft is on the rise. I think I'll go buy a locking gas cap!!! 
An interesting note I heard from a police neighbor friend...he says Candian tire cannot keep enough red gas cans and siphoning kits on hand!!!!
With the price of gas going up and up, gas theft is on the rise. I think I'll go buy a locking gas cap!!! Pete
The great outdoors is where I want to be.
The great outdoors is where I want to be.
Gas Price
Filled my 2wd 1/2 ton Chev Pick up with regular on Friday $154.00.
I can not wait to see what my next diesel fuel bill will be for the farm.
Alternative fuels? Right now I think soy Oil could compete with Dino oil price wise. 1 bushel of soybeans is 60 #, and contains about 20% oil. That is about 12 # of oil. Soybeans are about $6.50/bushel/Cdn$ . ANd you still have the meal for feed. Cold pressing at home would yield about 15% of the 20% oil conten.
Diesel jetta is starting to look real good.
$154.00.I can not wait to see what my next diesel fuel bill will be for the farm.
Alternative fuels? Right now I think soy Oil could compete with Dino oil price wise. 1 bushel of soybeans is 60 #, and contains about 20% oil. That is about 12 # of oil. Soybeans are about $6.50/bushel/Cdn$ . ANd you still have the meal for feed. Cold pressing at home would yield about 15% of the 20% oil conten.
Diesel jetta is starting to look real good.
I'm about ready to give up on trying to educate the ignorant.......the facts are available for why fuel prices are high......but most people don't let the facts get in the way of what they want to believe.......that is very evident by the responses to my post to Chris about why retail prices behave the way they do.......it is the truth whether you choose to accept it or not!!
The total ignorance posted here is overwhelming......I'm not trying to insult anyone, but you guys have absolutely NO CLUE what you are talking about!
The oil companies don't set the price of crude......it is traded just like any other comodity on an open market.......ever hear of the NIMEX?? Everybody is bidding against everybody else......china and india are quickly becoming HUGE consumers of oil.....they bid for oil the same as any other bidders......when you have a fixed supply of product and a growing pool of consumers.....prices go up! I can assure you that oil companies are not sitting on a huge inventory of fuel just waiting for prices to increase so they can make a higher profit!
When oil sells for $70 per barrel (42 gallons), that's $1.66 per gallon just to buy the crude!
Then you need to add: transportation cost to get the crude to the refinery, refining costs, transportation through a pipeline to the wholesale sight (where the transport trucks fill up), transportation to a retail gas station...... now, add in the saleries and benefits of everybody who works to transport the crude to the refineries, everybody who works in the refineries, everybody that works for the pipeline, everybody that works for the oil companies to keep everything running and doing all the government paperwork (HUGE amount), the truck drivers that haul fuel to the retail stations, everybody that works in the stations......now, add in insurance for every company that touches the product from the well to the pump.....don't forget the 40 to 50 cent tax we pay on EACH gallon we buy in the US (don't know what taxes in Canada add to the price).....and, keep in mind that you don't get anywhere near 42 gallons of gasoline from a barrel of crude!!!
Now, are you beginning to understand why gas is SO expensive????
Go ahead, rant and rave until you turn blue if it makes you feel better.......but the fact is, the oil companies are not causing this situation......it is a matter of supply and demand....
The total ignorance posted here is overwhelming......I'm not trying to insult anyone, but you guys have absolutely NO CLUE what you are talking about!
The oil companies don't set the price of crude......it is traded just like any other comodity on an open market.......ever hear of the NIMEX?? Everybody is bidding against everybody else......china and india are quickly becoming HUGE consumers of oil.....they bid for oil the same as any other bidders......when you have a fixed supply of product and a growing pool of consumers.....prices go up! I can assure you that oil companies are not sitting on a huge inventory of fuel just waiting for prices to increase so they can make a higher profit!
When oil sells for $70 per barrel (42 gallons), that's $1.66 per gallon just to buy the crude!
Then you need to add: transportation cost to get the crude to the refinery, refining costs, transportation through a pipeline to the wholesale sight (where the transport trucks fill up), transportation to a retail gas station...... now, add in the saleries and benefits of everybody who works to transport the crude to the refineries, everybody who works in the refineries, everybody that works for the pipeline, everybody that works for the oil companies to keep everything running and doing all the government paperwork (HUGE amount), the truck drivers that haul fuel to the retail stations, everybody that works in the stations......now, add in insurance for every company that touches the product from the well to the pump.....don't forget the 40 to 50 cent tax we pay on EACH gallon we buy in the US (don't know what taxes in Canada add to the price).....and, keep in mind that you don't get anywhere near 42 gallons of gasoline from a barrel of crude!!!
Now, are you beginning to understand why gas is SO expensive????
Go ahead, rant and rave until you turn blue if it makes you feel better.......but the fact is, the oil companies are not causing this situation......it is a matter of supply and demand....
GonHuntin, I see your point but why does gas in the ground imediately go from 68 cents a liter to $1.33but when the price crude goes down they say " well thats the expensive gas in the tanks and we have to sell it first." Oil cartels, oil companies and politicians frost my butt.
Digger
Digger
Digger
2008 Y25 Relayer #593 Boo string, lumizone
2-1984 Relayer,
2-1992 Wolverine
Excal Phoenix, acudraw, VARizone
T.P. Titan TL4, acudraw 50, Varizone
Vixen, Steddy Eddy, Varizone
Martin Rage
Martin Jaguar
PSE Infinity
2008 Y25 Relayer #593 Boo string, lumizone
2-1984 Relayer,
2-1992 Wolverine
Excal Phoenix, acudraw, VARizone
T.P. Titan TL4, acudraw 50, Varizone
Vixen, Steddy Eddy, Varizone
Martin Rage
Martin Jaguar
PSE Infinity
Digger
That is a fair question.......what most people don't realize is that the majority of gas stations are independantly owned (at least in the US).......they are not owned by oil companies even if the sign out front has an oil company name on it!
As far as the price of fuel in his tanks.......the retailer is in business to MAKE a PROFIT.......that means he MUST sell for more than his cost in order to stay in business.
Look at it this way.......if you were in the arrow business and you had $100 to invest in inventory.....so you bought 10 dozen arrows for $10 per dozen and sell them for $12.50 per dozen.......then, you get a call from your supplier saying that the price of arrows is going up to $13 a dozen next week......would you sell the arrows that are currently in inventory for $12.50 per dozen??? If you do, how are you going to pay for the next shipment that now costs $13 a dozen???? How are you going to pay the rent and feed your family??? A business CAN'T exist if it doesn't make a profit.......doesn't matter if that business sells oil, arrows or bubblegum!
Now, let's say your last shipment of arrows cost $10 per dozen and your supplier calls and tells you that he got a great deal on overstock arrows and can sell to you at $8 a dozen this week.......are you going to mark your current inventory down to $10.50 because you get a $2/dozen price break on the arrows that come in next week??? If you do, you are not a very smart businessman! And, guess what, if you can continue to buy arrows from your supplier at $8 per dozen and your customers are still willing to pay $12.50 per dozen.......you get to take that extra profit and, after paying more taxes on it, you get to take your family out to dinner once a week or maybe make a down payment on the new dishwasher your wife has been wanting!!!
So:
Why would you charge LESS than the market will pay and give away some of your hard earned profit?
Why would you sell below your cost and put yourself out of business???
Why would you sell your inventory for LESS than it costs to replace it???
If you want to stay in business.....YOU WON'T!!
So many of you act like profit is a bad thing! I guarantee you, if the oil companies didn't make a profit, they would not stay in business......ever try to drill for crude in your backyard and refine it in your basement???
Do you think Bill and Kathy could stay in business if they didn't make a profit??? They have a monopoly on Excalibur crossbows......if you want one, it must come from them!! Why is it alright for them to make a profit but it's terrible if an oil company does??? Don't you realize that oil companies are made up of people that have families to support and bills to pay??? What about the stockholders of those oil companies.....shouldn't they make money from their investment in the company???
You guys really need to think this through!!! I don't like high gas prices either, but I don't see anyone standing in line to give us crude and pay us to refine it and give it away!!
That is a fair question.......what most people don't realize is that the majority of gas stations are independantly owned (at least in the US).......they are not owned by oil companies even if the sign out front has an oil company name on it!
As far as the price of fuel in his tanks.......the retailer is in business to MAKE a PROFIT.......that means he MUST sell for more than his cost in order to stay in business.
Look at it this way.......if you were in the arrow business and you had $100 to invest in inventory.....so you bought 10 dozen arrows for $10 per dozen and sell them for $12.50 per dozen.......then, you get a call from your supplier saying that the price of arrows is going up to $13 a dozen next week......would you sell the arrows that are currently in inventory for $12.50 per dozen??? If you do, how are you going to pay for the next shipment that now costs $13 a dozen???? How are you going to pay the rent and feed your family??? A business CAN'T exist if it doesn't make a profit.......doesn't matter if that business sells oil, arrows or bubblegum!
Now, let's say your last shipment of arrows cost $10 per dozen and your supplier calls and tells you that he got a great deal on overstock arrows and can sell to you at $8 a dozen this week.......are you going to mark your current inventory down to $10.50 because you get a $2/dozen price break on the arrows that come in next week??? If you do, you are not a very smart businessman! And, guess what, if you can continue to buy arrows from your supplier at $8 per dozen and your customers are still willing to pay $12.50 per dozen.......you get to take that extra profit and, after paying more taxes on it, you get to take your family out to dinner once a week or maybe make a down payment on the new dishwasher your wife has been wanting!!!
So:
Why would you charge LESS than the market will pay and give away some of your hard earned profit?
Why would you sell below your cost and put yourself out of business???
Why would you sell your inventory for LESS than it costs to replace it???
If you want to stay in business.....YOU WON'T!!
So many of you act like profit is a bad thing! I guarantee you, if the oil companies didn't make a profit, they would not stay in business......ever try to drill for crude in your backyard and refine it in your basement???
Do you think Bill and Kathy could stay in business if they didn't make a profit??? They have a monopoly on Excalibur crossbows......if you want one, it must come from them!! Why is it alright for them to make a profit but it's terrible if an oil company does??? Don't you realize that oil companies are made up of people that have families to support and bills to pay??? What about the stockholders of those oil companies.....shouldn't they make money from their investment in the company???
You guys really need to think this through!!! I don't like high gas prices either, but I don't see anyone standing in line to give us crude and pay us to refine it and give it away!!
Here is another news flash for you guys......there ain't no Easter bunny, there ain't no Santa Clause and there sure ain't no "magic" carb that will produce 50+ mpg.....nobody bought up the rights to keep it from production.....that is a fairy tale!
An internal combustion engine runs most efficiently (best fuel economy) at an air fuel ratio of 14.7 to 1.......we get darn close to that with today's computer controlled fuel injection systems.......if we can't produce 50+ mpg through computer controlled fuel injection systems that constantly correct for the idea fuel to air ratio.......then you can bet your last nickle there is no carb ever invented or dreamed of that will do it........another bunch of BS swallowed hook line and sinker by those who want to believe it!!!
An internal combustion engine runs most efficiently (best fuel economy) at an air fuel ratio of 14.7 to 1.......we get darn close to that with today's computer controlled fuel injection systems.......if we can't produce 50+ mpg through computer controlled fuel injection systems that constantly correct for the idea fuel to air ratio.......then you can bet your last nickle there is no carb ever invented or dreamed of that will do it........another bunch of BS swallowed hook line and sinker by those who want to believe it!!!
Gonhuntin,
I used grocery stores as an analogy. The reason is because unlike arrows or crossbows or tv's, groceries are a necessity(sp?). Gas is, these days, also a necessity. And it should be controlled the same way, as far as pricing.
The gas industry is not the only one where there are many people behind the scenes making it work. Steel, lumber, vehicles, produce, donuts, beer, etc. If companies can afford to pay out the wages of all those that work for them(and some of these wages are quite good), than they must be making a very good buck or they wouldn't be in business.
Basically what I've heard is that gas companies can do whatever they want with their pricing and there is nothing you or I or anybody can do about it.
I have a question; why is it that the price of gas is immediately adjusted when the price of crude changes but motor oil stays pretty much the same?
I used grocery stores as an analogy. The reason is because unlike arrows or crossbows or tv's, groceries are a necessity(sp?). Gas is, these days, also a necessity. And it should be controlled the same way, as far as pricing.
The gas industry is not the only one where there are many people behind the scenes making it work. Steel, lumber, vehicles, produce, donuts, beer, etc. If companies can afford to pay out the wages of all those that work for them(and some of these wages are quite good), than they must be making a very good buck or they wouldn't be in business.
Basically what I've heard is that gas companies can do whatever they want with their pricing and there is nothing you or I or anybody can do about it.
I have a question; why is it that the price of gas is immediately adjusted when the price of crude changes but motor oil stays pretty much the same?
You can take the man out of the woods but you can't take the woods out of the man.
"Celebrate your harvest with a Bloodtrail Ale(tm)!!"
"It CAN Be Done!"
"Celebrate your harvest with a Bloodtrail Ale(tm)!!"
"It CAN Be Done!"