somewhat of a bright light at the end of the tunnel

[gonefishie]

I heard on the news today that Hawaii is the first state to put a CAP on gas prices at $2.15/gal before taxes. So retail mark-up can't go any further than the cap. Wonder how much is Hawaii tax on gas but at least something was done. Now that's what I am talking about! Somebody finally told the LEECHES they had sucked enough of peoples blood. Way to go Hawaii!

 

[kenimpzoom]

Re: somewhat of a bright light at the end of the tunnel

Hmmm. but what if the cost goes above 2.15??? So then companies will have to sell it at a loss??? Or will the goverment make up the difference?? Where will the governement get the money to make up the difference???<br /><br />Whats a fair profit??? What is too much profit???<br /><br />If you had something to sell wouldn't you ask the most money for it?? Or would you feel sorry for the buyer and sell it for cheaper??<br /><br />Ken

 

[Ralph 123]

Re: somewhat of a bright light at the end of the tunnel

Retailers only make a few cents a gallon. A gas station here in MA stopped selling gas all together after selling it continuously since 1918. The owner was sick of hearing people complain. He was on FOX yesterday talking about it, then they had the spokesperson for the trade association explain the economics which show retailers barely make any money on gas which is why they all rely on the C-store to survive (and why the guy in MA didn't care if he sold gas anymore until the prices come down and people stop giving him grief)<br /><br />All that will happen is nobody will ship or sell gas to HI and there will quickly be a black market.<br /><br />Gas is a commodity like gold, solver, orange juice, sugar, pigs bellies, etc. The price is determined by the free market, supply and demand. Everywhere governments interfere with commodity prices (like Europe, and communist countries) higher prices and/or shortages arise.<br /><br />Gas is high right now for several reasons:<br /><br />1) Refinery capacity. We haven't built a refinery in the US since the 1970s and we can't refine enough oil to meet demand. Several refinery accidents have further hurt capacity<br /><br />2) Blend requirements. Many states have different blend requirements which cause the refineries to run at below peak efficiency further putting pressure on supply<br /><br />3) Worldwide demand (esp from China and India) are way up. That is why China is busy trying to buy every oil company in sight<br /><br />4) Rampant futures speculation due to the above and uncertainty about the Middle East<br /><br />In inflation adjusted dollars, you are still paying less for gas today than you were in 1981

 

[SpinnerBait_Nut]

Re: somewhat of a bright light at the end of the tunnel

0.16 cpg Plus 4% sales tax and additional county taxes and 0.12-cpg environmental response tax.

 

[eeboater]

Re: somewhat of a bright light at the end of the tunnel

I think that ceilings on anything like that is bad. It is going to have dramatically worse effects in the end. If they want to reduce prices, cut some of the taxes out of the price.<br /><br />Sean

 

[treedancer]

Re: somewhat of a bright light at the end of the tunnel

I don’t think that oil companies lost money when oil was at twenty dollars a barrel so how can the profit margin be so thin at sixty eight?

 

[JB]

Re: somewhat of a bright light at the end of the tunnel

The $68 is what the oil companies have to pay the producers, dancer.

 

[kenimpzoom]

Re: somewhat of a bright light at the end of the tunnel

The only people getting rich are those that get the oil out of the ground.<br /><br />Shell<br />Exxon/Mobil<br />Chevron<br />Kerr McGee<br />BP<br /><br />These are the big drillers here in the USA. <br /><br />Their production divisions are making a killing, the rest of the company (refineries, plastics, chemicals, gasoline distribution, etc) arent making any more money than before.<br /><br />Ken

 

[willamettejeff]

Re: somewhat of a bright light at the end of the tunnel

The actual cap is on the wholesale not retail price. The retailer (gas station) should still be able to make their meager margins.<br /><br />Now about those environmentalists and others that have had a big hand in preventing the building of any new refineries for over 30 years and have also consistently stopped any improvements or expanding of the current ones.<br /><br />For now, if everyone would just start minimizing their use of gasoline you would be surprised just how soon prices will drop. This has always been the one consistent way to make that happen. I have seen this time and time again since the very first oil embargo. Government intervention, forget it. My 2 cents anyway.

 

[Ralph 123]

Re: somewhat of a bright light at the end of the tunnel

The wholesalers will simply not sell. HI will be out of gas soon.<br /><br />The *real* people making money are the owners and the traders. Oil companies are making money on the spread between the price they paid for their inventory and what they are selling it for now. However, that's a two edged sword because they can lose it back when and if prices fall. (Can't sell their inventory for what they paid for it).

 

[K5WAS]

Re: somewhat of a bright light at the end of the tunnel

The guy in MA stated that he was making .15 per gallon. In Florida the state requires a markup of no less than .08 a gallon to prevent preditory pricing.

 

[rwise]

Re: somewhat of a bright light at the end of the tunnel

Oklahoma has a similar law but I think it's .06 per gallon. What you gona do quit driving? I don't think so, maybe drive less and use a smaller vehicle.

 

[salty87]

Re: somewhat of a bright light at the end of the tunnel

not quit but carpool. i haven't filled my truck in over 3 weeks.<br /><br />i read that the gas station owner that was run over recently and killed was only making $0.01 per gallon profit. that's supposedly why he tried to catch the car, story said he'd have to sell 5200 gallons to make up for the $52 the person was stealing.