Shopsmith Forums

heathicus wrote:The price at each station (if they are honorable - unlike the one Farmer referenced who raised his price just because the other guy did) depends on the price they had to pay for gas on the day they ordered it for that particular station. It could also be that one station is in location that requires a specific blend of gas that is more expensive than the blend required where the other station is. Throughout the year, there are about 50 different regional/seasonal blends of gasoline that have to be used across the nation.

wannabewoodworker wrote:From everything I have read on this and heard on the news/radio it is all about the oil futures and the speculators trading in those futures. The government needs to step in and stop ALL petroleum speculation and all of this crazy pricing will stop. There are other issues but the most important one is the speculation. I am at a loss as to how to deal with it. It is truly frustrating to a fault because there is nothing that the regular guy can really do to combat the problem. You would think that the administration in Washington would be all over this as it is effecting everything not just the gas prices. Because we have to ship everything in our economy it effects the price of everything and that means everything increases and with all of the talk about the economy you would think the administration would do something immediately to stop the soaring gas prices??????? It is just making Obama's and his cronies jobs even more tough to do so why don't they DO SOMETHING!

so why don't they DO SOMETHING!

pennview wrote:I think they're doing exactly what they want to do -- allow prices to run amok so alternative or renewable energy looks more attractive. Meanwhile, blame others like the oil companies, futures traders or volatile areas like the Middle East so that no one notices Washington's lame policy on energy. And don't expect the media to spotlight the folly]
QFT.

Speculators aren't really the problem. They just reflect the best guestimate of what is about to happen in the market. To find the problem, you have to look at why the speculators are speculating the way they are. And that is decreased supply and increased demand.

Demand is rising world-wide, but especially in China, India, and other developing nations. And as I mentioned before, the supply is not really changing.

I know we're venturing into politics here, but if you really want to lay the blame somewhere, you have to start with our energy policies. This "task force" the President is setting up to examine gas prices is a red herring. It's the hand the magician wants you to see while the other hand is doing something he doesn't want you to see. And I think pennview is exactly right - the administration wants the price of gas to rise to make alternative energy more attractive. And it doesn't stop at gasoline.

&quot wrote:Under my plan of a cap and trade system, electricity rates would necessarily skyrocket.

Energy prices rising is part of the plan.

JPG40504 wrote:Then there is the possibility that a station operator is free to set his prices without any 'interference' from his 'supplier'. That is as it should be!

JPG40504 wrote:Quick Reply? I have never been successful doing that! Do tell how you are!


If you are editing a previous post, go to 'advanced' to get the smilies menu...

Ya gotta go back more than a half century for 4 nickle gas!:D

heathicus wrote:QFT.

Speculators aren't really the problem. They just reflect the best guestimate of what is about to happen in the market. To find the problem, you have to look at why the speculators are speculating the way they are. And that is decreased supply and increased demand.

Demand is rising world-wide, but especially in China, India, and other developing nations. And as I mentioned before, the supply is not really changing.

I know we're venturing into politics here, but if you really want to lay the blame somewhere, you have to start with our energy policies. This "task force" the President is setting up to examine gas prices is a red herring. It's the hand the magician wants you to see while the other hand is doing something he doesn't want you to see. And I think pennview is exactly right - the administration wants the price of gas to rise to make alternative energy more attractive. And it doesn't stop at gasoline.



Energy prices rising is part of the plan.



My sister and her husband own a convenience store and a lot of what I know comes from them. The price of gas at their station is based on what they have to pay for it. After one recent sudden spike in prices, they waited as long as they could to re-fill their tanks, so for several days they were about 10 cents lower than anybody else. But when they finally had to buy more gas, they were a cent or two higher than everybody else. Although the station operators do have some flexibility in their prices, the profit margin is so slim that there really isn't much room there. I guess that's why some stations take the "I raised my price because the other guy did" approach when they can.