Hess acquisition by Speedway

Status
Not open for further replies.
Originally Posted By: dave1251
Originally Posted By: Tdbo
This explains what Speedway can do for local markets:

http://www.thegasgame.com/speedway-effect/


Just be happy you do not have to pay the CARB tax which helps to keep gas prices around and more often than not over 4.00 a gallon. Wait the EPA has mandated the entire U.S. adopt CARB gasoline standards. Speedway will be the least of your worries once this mandate is effective.


Not sure why this is germane to the discussion but Speedway does pretty good at taxing the people in their areas.
Yesterdays $3.24.9 gallon of gas is $3.49 today. Twenty-five cents a gallon overnight. They delayed until Friday morning this week, change it up a bit.
 
Simple be happy for what you have. That was the point of the post. A single supplier of any product is unable to set prices without collusion with other suppliers of the same product.

The idea that a small oil company such as Marathon Petroleum could price gouge gasoline is really unlikely. This is like Family Dollar setting the prices of goods at Walmart higher. The larger competitors of Marathon would really like Marathon to engage in price gouging and would sell out Marathon with a quickness. Thus knocking Marathon down even further in the pecking order.

The need for conspiracy is strong in the human psyche.
 
Originally Posted By: dave1251
Simple be happy for what you have. That was the point of the post. A single supplier of any product is unable to set prices without collusion with other suppliers of the same product.

The idea that a small oil company such as Marathon Petroleum could price gouge gasoline is really unlikely. This is like Family Dollar setting the prices of goods at Walmart higher. The larger competitors of Marathon would really like Marathon to engage in price gouging and would sell out Marathon with a quickness. Thus knocking Marathon down even further in the pecking order.

The need for conspiracy is strong in the human psyche.



What does "be happy for what I have" do with the discussion? Seriously?

The original post regarded what Marathon has done with controlling the market in the Midwest. People who live in the Midwest know exactly what I am talking about and even several posters on this thread are aware of the phenomenon.

One entity being the price leader for an entire region does raise questions and given the statistics of how they control market share in the state of Ohio (as well as other Midwest states) certainly does merit some discussion. Others in the region have noticed this as well, leading to the blog that was linked to in this thread. I won't even get into how the number of retailers we have in the state have dwindled over the years.

The point is that Marathon IS THE LARGEST supplier in the state of Ohio (and I think that I can safely say that they are at least a player in the other Midwest states they serve as well.) They set the price and many of the other suppliers/retailers follow as well.

I live in the Midwest and see this pattern every week. Anywhere form 25-50 cent price jumps on Wednesday/Thursday and they drop to their lowest point on Monday/Tuesday,and sometimes Wednesday. The days and the amount may vary, but the pattern largely remains the same.

Guess a lot of us are whacked out conspiracy theorists. Glad that you got your finger on the Midwest fuel market from all the way out in Arizona.
 
Originally Posted By: Tdbo
Guess a lot of us are whacked out conspiracy theorists. Glad that you got your finger on the Midwest fuel market from all the way out in Arizona.



Try again. I am a Hoosier.
 
Originally Posted By: dave1251
The midwest has some of the lowest prices in the country.
http://www.gasbuddy.com/gb_gastemperaturemap.aspx
http://www.gasbuddy.com/GB_Price_List.aspx

Gas price fluctuations for Ohio are in line with the national average for the last 10 years.

http://www.GasBuddy.com/gb_retail_price_...20&units=us




Where did I ever say that Midwestern gas prices are some of the highest?
This whole thread was about the huge spikes in price on a weekly basis and the nature of how pricing spikes in an area that has a large number of Speedway stations and how that may play out with a huge acquisition of stations on the East coast.

In regard to your second set of graphs, they show that gas prices in Ohio were above the national average for several weeks during 2014. They have leveled out in the last week. When you went to the trouble to get all your graphs together because "I'm not thankful for what I have", did you not notice the wide swings in pricing over the course of time. THIS IS EXACTLY WHAT I (AND OTHERS) ARE TALKING ABOUT. Not all markets have those kind of swings in price over time. That is the point, the volatility of pricing and the radical swings of it.

When one vendor sells more gasoline during a month than the second and third competitor combined (72 million gallons vs. 68 million gallons) during February of this year (see post 10 of this thread for more info.) and that is one subsidiary of the company, it looks like they are the market leader and thus are the price leader and set the price (particularly when they as a group are the first to adjust price.)

Agree with my view or disagree with my view, I really don't care. I (and others) see this same phenomenon every week and can about set our watches by when the "jump" will occur.
 
Originally Posted By: dave1251
Originally Posted By: Tdbo
Guess a lot of us are whacked out conspiracy theorists. Glad that you got your finger on the Midwest fuel market from all the way out in Arizona.



Try again. I am a Hoosier.



Good for you. So do you buy your gasoline in Indiana or Arizona?
If it's Indiana, you are probably not residing in Arizona.
 
In your opinion, I haven't.
As I said, I really don't care if you support my position.
Your validation means nothing to me.
Go get condescending with another total stranger by telling them what they should be thankful for what they have.
I'm done wasting the time conversing with the wall. Goodbye.
 
Provide data. A few spikes over 10 years does not support your assertion. For the last 10 years the price fluctuations in Ohio are almost always in line with the national price fluctuations.

What Ohio is experiencing in regards to gas prices is not abnormal. Thus claims Ohio is experiencing unusual price fluctuations can not be substantiated.

Funny turnabout really irritates offenders.
 
Originally Posted By: BearZDefect
Originally Posted By: sopususer
... I've bought Speedway while traveling through the Midwest with no issues, but from what I can gather in reading about Speedway, they are not generally viewed in a positive light where they operate. I hope my perception is wrong; guess time will tell.

Your perception is correct. Speedway aims to control the market, everyone else follows their lead on price gouging as they, for example, hike prices 30c when the market only shifted 10c.
37.gif




You have noticed that also?
 
Yes. Speedway drives the price hiking game here, as I wrote in my earlier post you quoted, and everyone else around follows. Last November Costco came to Lexington, and they have IMO provided the proof - the market does not wildly jump up ~30 cents per gallon on a regular and frequent basis. A day or so after Speedway raises ~30 cents, Costco raises ~10 cents. Then they both drift down for a week or two, bottoming out near the same price before another rise.
 
The same comparison can be made between Speedway and nearby truck stops. The truck stops will rise 10c when Speedway rises 30c. Speedway's prices will then drift down more so they eventually get close, but the artificially high spike is definitely there. And yes, I've observed this trend (Speedway vs Truck stops) for 10+ years, but no I don't have recorded proof.
wink.gif
 
Originally Posted By: BearZDefect
The same comparison can be made between Speedway and nearby truck stops. The truck stops will rise 10c when Speedway rises 30c. Speedway's prices will then drift down more so they eventually get close, but the artificially high spike is definitely there. And yes, I've observed this trend (Speedway vs Truck stops) for 10+ years, but no I don't have recorded proof.
wink.gif



BearZ: Here's your proof:

http://www.GasBuddy.com/gb_retail_price_...=3&units=us
 
I totally agree. I just went through Ohio on Thurs. the 11th. Gas was $3.39 everywhere. Returned on Fri. the 18th. Price was $3.69. We make this trip twice a year, it's always the same. Big jump on the weekends. It's even worse on major holidays. Michigan is the same. It's called price gouging... This doesn't happen in NC. We have anti-gouging laws. We stopped in Toledo to visit family on Thur. the 17th. and found an indi station @ $3.19 . Topped up and made it all the way to Wytheville, VA Where gas was $3.19.

Wayne
 
Thanks Tdbo. It's even more fun when there actually is a 30c rise on the market, because then Speedway will raise by 30c twice in the same week.
They should contribute extra millions into healthcare for the stress they cause some people when they do that.
09.gif



I suspect local gas station owners like Speedway, because the Speedway pricing scheme enriches them too.
 
Originally Posted By: Tdbo
It's amazing what happens when data is presented in a manner where day to day trends can be observed:

http://www.gasbuddy.com/gb_retail_price_...=3&units=us

This graph shows a city where Speedway is dominant, US price average, and a city where Speedway does not operate.


What does the gas price of Phoenix AZ have to do with the price of gas in Columbus OH?
Nothing.

Notice gas prices in Chicago IL with a grand total of 13 marathon/speedway stations with a hundreds of other stations providing gasoline. I have included Indianapolis Indiana also for comparison.

http://www.gasbuddy.com/gb_retail_price_...=3&units=us

You have a example of a region with fluctuation gasoline prices. I recommend you investigate the reason this is indicative of your region. Not blindly place blame.
 
Originally Posted By: dave1251
Originally Posted By: Tdbo
It's amazing what happens when data is presented in a manner where day to day trends can be observed:

http://www.gasbuddy.com/gb_retail_price_...=3&units=us

This graph shows a city where Speedway is dominant, US price average, and a city where Speedway does not operate.


What does the gas price of Phoenix AZ have to do with the price of gas in Columbus OH?
Nothing.

Notice gas prices in Chicago IL with a grand total of 13 marathon/speedway stations with a hundreds of other stations providing gasoline. I have included Indianapolis Indiana also for comparison.

http://www.gasbuddy.com/gb_retail_price_...=3&units=us

You have a example of a region with fluctuation gasoline prices. I recommend you investigate the reason this is indicative of your region. Not blindly place blame.




You are totally unreal.

You have proven that you either did not read the rationale for the three choices, or you are just going to rant and make noise.

All this because I posted a link to The Gas Game. Know where I found that? From reading this site.

Using the site Gas Buddy, in which you claim is valid, I produced two graphs for two different markets, Columbus, Ohio and Lexington ,Kentucky and compared them to the US average, and picked a city at random that had no Speedways in it. Both had virtual straight lines. The cities with Speedways had lines that resemble EKG's.

What is the difference between the City (Phoenix) and Columbus and Lexington? Phoenix has no Speedways.

I am not the first to notice this phenomenon. Since Gas Buddy seems to be your site of choice, read the forum section. Many have talked about this phenomenon. Heck, someone started their own blog/website about it (The Gas Game.)
Two people have stated that they have observed the phenomenon on this thread (Old Mopar Guy while traveling through the area and Bear Z Defect, who lives in Lexington.)People like Bear Z and myself deal with it. I (and I am fairly sure that he has as well) know when to buy gas prior to the spikes.

I have proven in my graphs that there are spikes. That is the crux of what I have stated. The graphs show clear and pronounced spikes. Therefore, I have backed up what I have said.

If you don't like my conclusions, then school me as to why these spikes seem to occur in areas that have a large volume of Speedways in them. After all, 1) you represent yourself as the all knowing "expert" and 2) you seem to be the one that is all cranked about it.

If you have nothing constructive to add, stop the trolling and butt out. And BTW, to reuse your snark "Funny turnabout really irritates offenders."
 
Status
Not open for further replies.

Similar threads

K
Best studded snow tires?
Replies
13
Views
6K
Vercingetorix
Skippy722
  • Locked
US Steel sold to Nippon
2
Replies
33
Views
2K
JavierH19
OVERKILL
Garbage humans - Netflix "Outlast" show
2
Replies
25
Views
4K
Pablo
ls1mike
AVIS 2019 Mustang GT rental review.
Replies
6
Views
915
ls1mike
P
Air through oil bypass valve normal?
Replies
8
Views
792
PDRig
Back
Top