In talking with family, friends and others around the country, there seems to almost always evolve the issue of gasoline prices. It's interesting. This morning in driving a local highway, I noted that the price was $3.40 per gallon--the regular grade. My point is that gasoline prices seem to be much higher in most other locations. I know there are market implications, etc.; however, I can't help but wonder what the root strategies, beyond supply and demand, are in establishing the price.
6 comments:
I paid $4.19 at lunch today to fill up.
I've heard many "experts" try to explain the pricing mechanisms -- all different. One is that the refineries watch the price of crude oil and raise gas prices immediately upon any increase in oil futures prices. But, when oil prices decline, the stations tend to keep the price high, worrying that they won't be able to pay for the next truckload of gas. Today, despite the price of oil futures lately being steady to slightly lower, Peoria stations raised the price overnight from 3.89 to 4.15.
No joking. Illinois gas tax is also very high, contributing to confusion with state comparisons.
Peoria is always about 20 cents higher than Gridley or ElPaso. Go figure.....
The Gridley BP has about the cheapest gas around - sometimes it is so busy we can't hardly find an open pump! $3.87 today.
We are paying about $3.41 right now. One reason gas is lower around here is because we are located right on a major pipeline (to the northeast).
While Aaron's family was at our cabin over Memorial Day, Caleb (age 8), prayed at one meal just as serious as could be: "And Lord, please help the gas prices to go down. Also, please help Barack Obama & the rest of the Democrats get wisdom." Hilarious!
Too funny, Crystal. Kids!
We are paying $3.35 right now.
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