[Winona Online Democracy]
On Aug 29, 2005, at 18:33, Christopher Popp wrote:
[Winona Online Democracy]
I don't think station owners are really benefiting from the high
gasoline prices. In fact, I think it may end up hurting their bottom
line. The increase in the cost of a barrel of oil comes far before
any involvement from station owners.
Agreed.
I imagine most stations set their prices near to, or at, the minimum
gasoline price allowable by law. With this, their profit per gallon
of gas would remain relatively constant. With higher gas prices
encouraging at least a minimal effort of forced conservation, the
reduced consumption would in turn lower their total profits from
gasoline.
Agreed.
Christopher Popp
I would add that there are other factors increasing the price of
refined products that are often times not mentioned. Availability of
other commodities such as coal also have an impact on the price of oil.
Difficulties transporting Powder Basin Coal from Wyoming is a large
driver in more recent oil moves.
<http://www.usatoday.com/money/industries/manufacturing/2005-08-24-
coal-usat_x.htm>
********************************************
David Dittmann
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