🚀 go-pugleaf

some one wrote.... 
the attributes are all messed up so i got rid of it all.

: Full Service at most place will be at least $.10 more ....
: IF YOU ASK ME THE PRICE INCREASE IS A SCAM...if more people drive in 
: summer should it not be lower? THE GAS COMPANIES ARE RIPPING OFF
: EVERYBODY !!!


i was told in school that if the demand for something increases, 
and supply remains the same, the price will increase. 
at a higher price, more people are willing to come to the market.

american refiners, petroleum product pipelines and other related
gasoline businesses operate at just below peak capacity (peak 
capaicty as defined by a rate of return, rather than engineering 
design) any excess capacity means someone has invested pots of 
money in something that is sitting idle.

e.g. a gasoline pump owner at your corner has a 12,000 gallon storage
tank and this serves them fine as their weekly sales are 10,000
gallons and they recive a shipment every week. however, on labor
day weekend the demand goes to 15,000 gallons a week. do yuo really
expect the pump owner to install extra storage tanks to meet
one week's peak demand and still stay in business?

i digress, back to the issue at hand.

come summer, everyone is buying gas. when refiners crank up 
capacity, they are now operating in a high cost environment. the 
delivery trucks, railroad tankers and pipelines charge more as they 
are a hot item now. every one want's them. (just like airline tickets,
higher prices in peak times; friday evenings, thanksgiving etc.)

as prices go higher, it is now attractive for someone to say -
hey wait a minute - i can buy and ship this stuff from the carrebian 
and still make money. imports of gasoline by traders in summer 
really go up which prevents prices from rising higher. if prices get 
too high, physical shipments from as far as singapore can also 
compete, keeping prices low.

sure, many things are regulated to prevent prices form going up.
e.g. your phone or cable service. road frieght prices were also
regulated indirectly by regulating the number of trucks that could 
operate on a partular route. i beleive the system is called
cabotage and was got rid under president reagan's first term.
(corrections welcome)

the petroleum product market is pretty competitive. there is lot
of competition in every stage of the way as barriers to entry are 
very low. if you got crude, you can pay a refiner xx$ per barrel
and get back gasoline/fuel oil etc. there are people every step
of the way who specialize in the value chain. if one is ineffecient,
one does not stay in business long.

look at   http://www.eia.doe.gov/oil_gas/pmm.html fo detailed 
information.

one will find monthly prices on 
gasoline sold by refiners to retail outlets and bulk purchasers
gasoline sold by refiners to resellers by dtw, rack, bulk.

one can get info on regular, midgrade and premium gasoline
on a state by state basis. check it out, and if anyone thinks
someone is making bigs bucks somewhere, email me. i'll try to
get in that business if your numbers look good and i'll send 
you a check for 10% of profits every  month. (hey - information
is a valuable commodity)

in washington dc, 
coke/pepsi other sodas cost about $1.50 a gallon at regular outlets
like safeway/giant/cvs etc.
milk costs more than $2.00 a gallon.
bottled water (generic/cheapest in a gallon jug) costs $1.50
orange and apple juice cost more than $2.00 a gallon.
(lets leave coupons and special sale out of it)

please remember that milk and juices come from renewable 
sources and water can be recycled 'n' times. gasoline comes from
a finite exaustable resource.

is gasoline really too expensive at $1.15 a gallon???


a very effecient oil industry on a global basis is here to cater
to every whim of yours. 

go ahead, buy that 9 liter V17 pickup that goes 3 gallons to 
the mile. just take responsibity for your behaviour. 

don't want to hear about how your municipalty/town/city is not 
designed for non-car use. when was the last time you attended 
a public hearing by the local zoning/planning commission and 
voiced your opinion?
or 
voted for a tax increase to provide buses in your suburban 
paradise...

one does not have to consume an item just because it's 
legally available and current paradigm promotes it's use.
there are millions of americans who choose not consume 
red meat or any meat. they have a belief and they carry it 
out, regardless of the inconveniences.
    

: and GOVERNMENT putting more taxes on Fuel is OUTRAGOUS ! I

i agree...

but then, giving money to the government can be seen as as an
insurance premium. 

your tax dollars were put to good use during 90-91 in the gulf.
can you imagine what gasoline prices would be now if everyone
is this country did not buy this coverage???

remember the mini energy crisis in 79-80? if everyone bought a 
larger insurance coverage the shah of iran would still be in 
place and oil prices would be more stable.

not all your tax dollars from gasoline are wasted. 

:-)
sanjay


-----
Sanjay Sinha            Resident of Washington D.C.
DoD #1224               Statistically speaking, i'm safer in Beirut.
CB 650 'The Cow'        Standard disclaimers apply.
VT 700C 'nonameyet'