What is going on with gas stations in Tampa?

[matt_sfl]

Oh but they'll keep driving their big pickup trucks, and there's never even anything in the bed of the truck anyway. I hope the gas goes up. Let those hillbillies pay to hear that V8 grumble.

[tilli]

If gas station "A" pays $81 for the gallon and sells it at $2.69 then how come gas station "B" buys at $81 also and sells at $2.71 or more on the SAME STREET LESS THAN A MILE APART? AND if both pay $81 then why are they changing the prices within a few hours???????

It's more like this: Station A refilled it's tanks last week when prices were lower and are still offering the lower consumer price as they are required to - they are not allowed to adjust their price just because the cost on the market has gone up, they are only allowed to adjust it when that change in prices actually effects them - i.e. when the station's tank is refilled at the higher cost. Meanwhile, Station B's tank was recently refilled and the consumer prices adjusted to compensate for the fact that this week it costs Station B more to fill their tank.

Now.......how many times a day do these gas stations refill? because I think it is once a day or less.....and also WHY if the price is $81 for everyone that each gas station around town has different prices? that's gouging because if it is $81 it should be $81 for everyone!

Stations that are busy are refilled a couple times a week. Stations that are less busy are refilled on a slower schedule. The reason they have different prices is that not every station is refilled at the same time. When an individual station is refilled their prices adjust. The station down the street may be cheaper because it bought it's refill when prices were lower. You think that even if the station had to pay more they should still have to offer it at a lower price and just eat the loss?

I highly doubt that EACH gas station in Tampa negotiates the price UP just so they can increase it at their station!!!!!!!!!!!!!

Of course they don't. Gas station owners want to have the lowest price because it drives business into their stores. They only raise prices when they MUST to compensate for higher costs that they have had to pay.

Price gouging is when there is a hurricane and the tanks were refilled the week before at a reasonable rate and should be selling for $2.71 a gallon but the station owner wants to charge $10 a gallon to take advantage of the sudden increase in demand despite the fact that the owner did not have to pay any additional costs to buy that gas. What you describe is not price gouging and it is clear that you've never actually experienced the real thing when you label a normal TWO CENT fluctuation as gouging.

[algia]

OK, In that case I will have to go higher to whomever is playing with gas prices BEFORE gas stations buy it.....

To me, unless a well runs DRY all of the sudden......there is no justification for them to change the price per barrel every day? what makes them do that? since I have to assume that the process of producing this gasoline doesn't change daily!

[tilli]

there is no justification for them to change the price per barrel every day?

Oil is traded on the free market - supply and demand is justification for changing prices, as both supply and demand are in constant flux. Sometimes supply is manipulated, such as when OPEC refused to increase production when the price was insanely high not too long ago, but I think in the end they were right since the prices returned to earth once the speculators moved on. Sometimes supply changes with no manipulation involved such as when a hurricane knocks out a couple refineries. Sometimes demand changes, such as when the weather warms up and people start driving more, or when people in third world economies start to have enough money to buy cars and emulate a western lifestyle.

[kbrkr]

algia, I think the gas stations are playing the market just like everyone else. if they bought stock for 2.77 a gallon, and the current market price today jumps to 2.81, they can make 4 cents profit on the inventory they have in the ground. They won't have to pay for the new price of fuel until the next shipment, and my then they'll probably have a new price to pay. It sucks for us, but it's the only way these stations can stay in business.

[tilli]

They are not allowed to do what you describe and given how report-happy people are with gas stations I doubt many owners would take that risk.

Edit: Fox13 is saying that the recent price increase is related to the earthquake in Chile.