Originally Posted by M2
Here's what I don't get (to expound on what sava said), why did the price of gasoline at the pump go up yesterday?
Katrina has caused all kind of problems for all kinds of industries, but you didn't seem that immediately speculated upon and passed onto the consumer. For instance, you could have bought Zatarin's rice mixes for it pre-Katrina prices even though Zatarin's may not be able to produce rice mixes for quite some time. Why? Because the retailer had already paid for it and tacked on its markup.
So why doesn't gasoline follow the same model? After all, your local filling station paid a fixed price for the gasoline it sells you. It didn't suddenly pay more for gasoline between noon and 6 p.m. yesterday. Of course your local filling station doesn't determine its prices. It gets the prices dictated from the corporate level and those prices fluctuate in a manner that adheres neither to logic nor the principle of consumer fairness. That this is legal baffles me.
Reading through this, you make a good point except for one small problem.
I have an old family friend who owns a gas station. SEVERAL years back the oil companies stopped selling the gas to the retailers. He doesn't own the gas in his tanks. They did this to stop the wild fluctuations in prices. In rural areas the trucking company would add transportation costs and the station owner would have to increase his price to cover it, so your country gas prices were always more than the city prices. In late 70's early 80's they stopped this, and the thought at that time was that it was a good thing because the price would be the same for everyone. HA! now we see what the real strategy was! My understanding of how it works since then, is the fuel is distribute to a local wholesaler and that distributer then sets the pump price and fills the local stations orders. In my friends case, he has the same gas in his tanks that they pump into the tanks of the local BP, and the local Citgo, and the local... well you get the picture.