What's going on with gas prices?

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Here in IL we're now at $2.99 and will probably be north of $3 soon. Supplies are plentiful, yet prices keep going up. What gives?
 
The traded price of gasoline is $1.896, about the same at last October, after trading as low as $1.25 last Christmas. Traders got to trade!
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Name it: Higher crude, switch to summer gas, maintenance shutdowns, any negative news they care to use as an excuse.

We are 2.95 here. It has gone up probably 60 cents in a couple months.
 
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Gas here jumped 15 cents yesterday after it jumped last week by the same amount.
I'm sure some if the oil company apologists on here will blather something about summer blend or other excuses.
What has never been explained to me is why don't prices drop by 15 cents at a time.They will drop a penny or two and then jump by a bunch.
They will probably blame the chemical fire in Houston or solar flares.
 
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Name it: Higher crude, switch to summer gas, maintenance shutdowns, any negative news they care to use as an excuse..
Add Venezuela issues to that list of excuses.

Averaging, ~$2.50-$2.55. Wasn't intending to fill yesterday but drove by a BP with $2.40, 10-20 cents/gal cheaper than others in same locale, so filled it.
 
Supply and demand. Stay home quit driving around etc. Dang I need 30 gallons of diesel for the tractor.
 
Originally Posted by Dallas69
Gas here jumped 15 cents yesterday after it jumped last week by the same amount.
I'm sure some if the oil company apologists on here will blather something about summer blend or other excuses.
What has never been explained to me is why don't prices drop by 15 cents at a time.They will drop a penny or two and then jump by a bunch.
They will probably blame the chemical fire in Houston or solar flares.


A couple of reasons.

It takes time for a station and more importantly for a tank farm to run though the more expensive fuel.
The profit margin for gas stations on gas is just a couple of cents (less than 1 percent).


Basically gas stations have little to no room to drop prices.
 
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Originally Posted by BMWTurboDzl

It takes time for a station and more importantly for a tank farm to run though the more expensive fuel.


While that does make sense, we don't seem to experience the same lag when there is any reason to raise the prices and the tank farms are full of cheaper fuel.
 
Originally Posted by stockrex
it is called price manipulation,


That price manipulation thing is at work when prices decrease, too, right?
 
Originally Posted by Lenny5160
Originally Posted by BMWTurboDzl

It takes time for a station and more importantly for a tank farm to run though the more expensive fuel.


While that does make sense, we don't seem to experience the same lag when there is any reason to raise the prices and the tank farms are full of cheaper fuel.


Yep. IMO that's because the demand for gas is somewhat inelastic.
 
Originally Posted by BMWTurboDzl

A couple of reasons.

It takes time for a station and more importantly for a tank farm to run though the more expensive fuel.
The profit margin for gas stations on gas is just a couple of cents (less than 1 percent).


Basically gas stations have little to no room to drop prices.

But running through less expensive fuel takes about 30 minutes.
 
Originally Posted by Cujet
Originally Posted by stockrex
it is called price manipulation,


Exactly right

That's why I really don't bother to look at gas prices.

They fluctuate all the time and don't pay attention cause if I need gasoline, the price is irrelevant. I'm not going to drive around town to save 10 cents per gallon.
 
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