Why is it

Why is it that when oil goes up they raise the price on the gas that was already in the underground storage tanks at the gas station BEFORE the price went up??? 

Answer:  because they can!

 yes a real ponderer isn't it....

Because what's driving gas prices is not the current price per barrel of crude oil, but rather is speculation about the future price of oil.  When the price goes up, that's taken as proof that they're right to charge more, but when it drops that's seen as a temporary correction.

 My answer is a bit simpler but then I prefer things simpler...

GREED 

GracieBlue2:

GREED 

I agree!!

Yup! Greed it is!  We the consumer let them get away with it.  Would be too difficult to go a month without buying any gas, but sure would be fun to see what happens.

...and they've got us by the you-know-whats and they know it.

It didn't just take some smart Arabian/middle eastern oil man to realize we all need gas to run our cars, the trucks, airlines, etc, etc to keep our economy going....it took a greedy Exxon/Mobile/Shell/Chevron oil man.

The second the oil companies incredible profits stop sky-rocketing is when I'll think it's someone else we need to look at. Wouldn't it be lovely to find alternative fuels and then leave those greedy %$#**(!@# holding the oil barrel, that we don't need any longer???

It is because they still have a supply of oil or gasoline that they paid a higher price for and sell it at the higher price in order not to lose money until that supply is gone.

Then, when they run out of the more expensive gas and they get a new supply into the stations at the lower price, they will lower the price at the pumps.

That is the way it was explained to me by our gas station owner.

If and when we actually do start the process of producing alternative energy....you watch,  Exxon, Chevron, Conoco Phillips, BP and all the rest of those big oil companies will be the ones who produce the alternative energy.  We won't be able to shake 'em.

gr_elo:

It is because they still have a supply of oil or gasoline that they paid a higher price for and sell it at the higher price in order not to lose money until that supply is gone.

Then, when they run out of the more expensive gas and they get a new supply into the stations at the lower price, they will lower the price at the pumps.

That is the way it was explained to me by our gas station owner.

Grelo it doesn't take 4 to 6 weeks for the stations here to run out.  They are filling up at least once a week.

Also, the gas at Cantwell and Glenallen (which are much further from Anchorage than we are) had gas about the same as here.

'cause then can get away with it and they know we have no choice but to pay.  We have no other way to get to work or get to our destinations until an alternative method of transportation is met.  I'm to old to drive a motor cycle to work or ride a bike.  There is no bus service or train.

Our Govenator is right when he is against more oil drilling here - lets find an alternative and get off the oil tit.

I work in the plastics business - every week our prices go up because plastic is made from oil resins.  Our customers are going out of business.

Alaska_Prof:

gr_elo:

It is because they still have a supply of oil or gasoline that they paid a higher price for and sell it at the higher price in order not to lose money until that supply is gone.

Then, when they run out of the more expensive gas and they get a new supply into the stations at the lower price, they will lower the price at the pumps.

That is the way it was explained to me by our gas station owner.

 

 

Grelo it doesn't take 4 to 6 weeks for the stations here to run out.  They are filling up at least once a week.

Also, the gas at Cantwell and Glenallen (which are much further from Anchorage than we are) had gas about the same as here.

Anchorage would be a lot busier than the stations are here. All farkers have their own big tanks and get gas delivered to the farm. Only the town folk and the few travellers buy at our (now only 2) stations..

One station is at the end of the next block and from my windows I ca see when the tanker is there to fill them up. I guess it depends on where you live and how many people buy gas .

I was just the messenger. Prof, I really don't worry about it since there isn't a thng I can do to change it except run around in my Batmobile unless it rains.(that  reminds me, I better go and turn the charger on, put a few miles on it today by going to PT at the hospital and did some visiting afterwards).

gr_elo:

It is because they still have a supply of oil or gasoline that they paid a higher price for and sell it at the higher price in order not to lose money until that supply is gone.

Then, when they run out of the more expensive gas and they get a new supply into the stations at the lower price, they will lower the price at the pumps.

That is the way it was explained to me by our gas station owner.

THAT I can understand, but when they RAISE the price on what they have already purchased...that's what p!sses me off! And the same is true in the grocery store...when they used to actually put price stickers on items, you would find a can of beans (ie) with two or three stickers on it...old stock that they raised to the new higher price...now they only have to re-program it!