[Winona Online Democracy]
Very good question, Mr. Woodford, but maybe the question isn't for Tom Severson.
And, it even gets worse. A situation that Winonans are probably not seeing is "zone retail gas pricing". Here in the Metro one can see a 10 cent (or more) difference in pricing from stations of the same brand (and station owership in some cases) depending on where you are located.. It (the difference) bears no relationship to the cost of the product or the transportation costs to get it from the refinery (or pipeline head) to the respective stations. In many cases stations much further from the two Metro St. Paul-area refineries (like in Elk River) are much cheaper than in St. Paul (close to the refineries and pipeline terminals). It has everything to do with the demographics of the respective neighborhoods in the eyes of the petroleum marketers. There was an expose' of sorts on this zone pricing scheme in one of the Metro papers recently.
Then, there are "minimum pricing" rules by our State. A station owner can not legally price gas under a certain amount. One Exxon retailer with several Metro stations has repeatedly been fined by the State for trying a "gas war" - anybody even remember that term? I am guessing that the minimum pricing level is established by some formula heavily weighted by the Super America and Holiday groups - by far the most prevalent brands up here.
Finally, as Mr. Woodford indirectly suggests, try placing heavy blame on the "market makers" at the commodity exchanges. These guys neither pump the oil, nor sell it. They simply trade paper (futures). An Arab sheik has a tummy ache and the traders panic, driving up futures. There's the excuse for the refiners and marketers to raise their prices.
So, take it easy on Tom Severson folks. It isn't as simple as it might appear.
Chuck Dillerud
Champlin
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> [Winona Online Democracy]
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--- Begin Message ---Regarding the gas prices and retailers charging bare minimum margins...I don't believe that for a second. I travel extensively on the road and am very aware of price fluctuations ( a few weeks ago I could fill up my vehicle for @ 45$, it is now @ 60$). My question to retailers claiming poverty is this; Why do you adjust the prices daily? You don't fill your storage tanks daily? What you paid for the gas you already have sitting on your property does not change. Maybe the next shipment will go up in price but certainly they don't re-invoice you for gas you have already paid for. This is gouging. This is a freemarket economy( thank the Lord) and I understand and ;love profit, however, don't lie to us and raise the price of gas because <pick one: King Faud died(my personal favorite this summer), The burgeoning Chinese economy,The situation in the Mideast, INSERT ANY NEW EXCUSE HERE> Meanwhile, oil companies are posting RECORD profits. I am begining to ramble. If someone here can explain to me why retail gas prices fluctuate like the tide( even though the retailer has not recieved the newly priced gas) let me know.__________________________________________________
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