Quote:
Originally Posted by BackinBlackSS/RS
The cost of gas in the retailers tanks at that moment has not gone up. They bought it at a certain price. Why do they raise price on something they already bought at a certain price? That's what gets me.
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I'll answer that for you. Just on 2-21-11, we delievered 9003 gallons of unleaded to our gas station that we own but lease out. The total cost with all the taxes and surcharge added in was 3.1296 per gallon. Right now the man who leases and runs it has the gas at 3.39. Now reason why he has taken it up so far is because by the time he runs out of that load and needs to re-up, the cost could be very well over 3.30-3.40 range. And if he buys that at that price and say the market starts heading down and forcing him to sale at 3.20 or so, that whole last load cost is being sold at a lost. So keep in mind if he doesn't make more then a few cents on that load he recently brought in, he would eventually start just dumping money into a losing business if doesn't put enough markup in the selling price to keep up with the future cost and unknown market adjustments.
Hope that helps.