The Gas-Price conspiracy theory

MrBishop

MrBishop

Well-Known Member
  • Gas prices fluctuate due to economic reasons such as supply and demand.
  • Competition helps keep prices to a reasoneable level.
These two statements cancel each other out.

Sometimes gas prices can rise suddenly because of events that happen overseas. These price changes occur overnight despite the fact that it takes 3 months for oil to travel from overseas to the americas, from there to the processing plants, go through processing and then be delivered to gas-stations.

Gas-stations which are supposed to be in competition with each other...despite spending millions of dollars every year in advertising saying that they're the best, still manage to have the exact same price (to the tenth of a penny/liter) as a station from a different company on the other side of town.

Oil/gas manufacturers deny price-fixing (see price gouging), and deny that prices fluctuate based on their own control instead of on supply/demand.

Something is wrong here... can anyone explain to me how this can be happening legally?!?
 
paul_valaru

paul_valaru

100% Pure Canadian Beef
all I know is on thursdays when people get paid the priices ALWAYS jump, an they are back down on friday
 
unclehobart

unclehobart

New Member
Oil Supply Disruptions – August’s blackout in Eastern North America disrupted many supply lines and closed five oil refineries in Ontario and two in the United States. There was also a rupture of a major pipeline in Arizona, which produces 238,000 barrels of oil a day.
War and Political Instability – Global crude oil prices have been elevated for several weeks because of political turmoil in Iraq, Nigeria, and other major oil producers.
Low Oil Inventories – The past harsh winter decreased inventory in oil refineries across North America, resulting in low supply levels.
High Summer Demand – Gas demand typically rises in the summer. However, the 2003 summer has exceeded traditional increases in both Canada and the United States.

If the winter is harsh when the buyers did planning on a mild to blah winter, then demand for heating oils skyrocket and the companies have scramble to make extra. The cost of production has to shoot up to cover the short term shortfalls. Overtime, transportation, future uncertainty to compensate for the failure to stockpile. The industry wont hire x many more people to cover the excess workload for what could amount to only a 2 week bubble of time. Uncertainty, demand, and low stockplies make it all go nuts across the board at once causing temp jumps of 25% or more.

I don't like it either ... I still feel there is a conspiracy even after the explanantions are laid out.
 
MrBishop

MrBishop

Well-Known Member
FIFO and averaged inventory should take care of many of those arguements. The gas-stations already have their purchased inventories in their storage tanks. If they purchased at X/liter and sell at a %markup, their prices shouldn't vary until they refill. When they refill...you take the amount purchased*cost/liter and the amount in the tank*cost/liter and divide by the total liters holdeable in the tank. Add your %markup and voila...your cost of fuel.

I can't see the price for the in-situ gas rising regardless of what's going on elsewhere, and I certainly don't think that every gas-station in the Americas recieve gas immediatly before pay-day or long-weekends, or worst yet..right after a gas-crunch, so it's got to be something else.

If, Unc, as you say...the supply is down, there should be a reasoneable delay of time between when this event occurs and when the gas prices should rise...the prices should also rise and remain at a level until the crisis-du-jour is over (plus a few days) and then drop again. This isn't happening.

Which is why I think that prices are fixed by all manufacturers (sub-rosa), and then doled out to their individual gas-stations...perfectly illegal when you consider the laws on competition and price fixing.
 
Professur

Professur

Well-Known Member
It's not the price fixing that bugs me. It's not even the lying about it. It's that they jump the freaking price by these huge amounts. 40 cents a fucking gallon at a time. Reality check time, assholes.
 
Inkara1

Inkara1

Well-Known Member
The theory is really quite simple: oil prices go up, gas prices go up. Oil prices go down, gas prices go up.
 
Professur

Professur

Well-Known Member
Whall. The price hopped up by nearly 10% last night. Anyone heard of any refineries being blown up this week? Didn't think so.
 
MrBishop

MrBishop

Well-Known Member
Inkara1 said:
The Texaco next door has been holding steady at $1.629/gallon the last few days.
Click to expand...
This is exactly why Canadians HATE Americans.

81.9 cents/liter local (times)
3.7854118 liters per gallon (Equals)
$3.105/gallon CAN or $2.385 USD$
 
paul_valaru

paul_valaru

100% Pure Canadian Beef
And febuary is teh historical month that the gas prices set there new minmum bar.

I remember 4 years ago bitching when gas was at 59.9/litre

now if we see it at 72/litre we are filling it up cause ist's such a good deal.
 
unclehobart

unclehobart

New Member
Throw out your government and bring in a new one that will slash gas taxes. Theres no reason gasoline should be above .30/liter
 
Luis G

Luis G

<i><b>Problemator</b></i>
Staff member
unclehobart said:
Throw out your government and bring in a new one that will slash gas taxes. Theres no reason gasoline should be above .30/liter
Click to expand...

Yet, we pay 0.60/l for regular and almost 0.70/l for premium, and we are supposed to have lots of oil :shrug:
 
paul_valaru

paul_valaru

100% Pure Canadian Beef
All I know is I have no idea what the actual price of gas is, the taxes on it are staggering.

I bet the actual price for gas is about 30/l

and the other 50 is taxes to pay for our road upkeep.......


which aren't upkept
 
unclehobart

unclehobart

New Member
In Canada via 2001 stats @ 71.8/liter,

41% crude costs
11% refining costs and markup
6% marketing and distribution and retailer markup
42% taxes

Thats a rough graph that I found. There are others that break it down to its little pieces insofar as what is federal and what is provincial. Haven't found that one yet.
 
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