RE: Peeved at the pump

From: Glenn Morton <glennmorton@entouch.net>
Date: Thu May 13 2004 - 22:34:04 EDT

> -----Original Message-----
> From: asa-owner@lists.calvin.edu
> [mailto:asa-owner@lists.calvin.edu] On Behalf Of Al Koop
> Sent: Thursday, May 13, 2004 11:20 AM
> To: hvantill@sbcglobal.net
> Cc: asa@calvin.edu
> Subject: Re: Peeved at the pump
>
>
> On 5/13/04 12:47 AM, "Peter Ruest" <pruest@mail-ms.sunrise.ch> wrote:
>
> > Wow! Aren't you lucky! My last tank filling a few days ago, here in
> > Switzerland, cost me $4.11 per US gallon of 95 octane unleaded. I
> > don't think you could get it below $4 anywhere in Switzerland.
>
> The price was already down to $1.97 at some stations
> yesterday. Here they play a funny game of gas price
> roulette. It used to be that every station raised the price
> to the same level on a given day and then over the next two
> weeks the prices would gradually dribble down about 20 cents
> lower (I just noticed that my keyboard does not have a cents
> sign.) only to rise again on a certain day that somebody has
> to signal. (Sort of seems like price fixing to me.) Recently
> the this price rise/dribble down started to occur every week,
> usually on a Thursday. Then about three weeks ago they
> switched the raise-the-price date to a Tuesday and this week
> they raised the price on Monday.
>
> I am convinced that anybody who would run for office on a
> platform of increasing gas taxes any significant amount would
> never get elected.

The reason everyone rises and falls has to do with (as I understand the
marketing situation although I have spent my career in the Upstream part
of the business) everyone getting their gas from the same refinery or
distributor in the area. Thus when the distributor raises prices, he
does it for everyone and they raise their prices. The US hasn't built a
refinery for years and years and the refineries can't keep up with
demand any more.
Received on Thu May 13 22:34:11 2004

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