Posted on 07/29/2016 8:52:37 AM PDT by Lorianne
Wholesale gasoline in California became the cheapest in the country this week, but that change has largely gone unseen at the pump, where consumers are still paying the highest prices in the continental United States to fill up their cars.
Ample inventories along with relatively stable refinery operations and imports has driven down the spot value of gasoline in Los Angeles at the wholesale level by more than 60 cents since mid-June.
However, that has not translated to similarly lower retail fuel prices for consumers because of peculiarities in California's market. The declines in the state's retail gasoline market over that period of time have averaged less than 14 cents, according to data from the U.S. Energy Information Administration.
On Thursday, wholesale California gasoline was trading below $1.20 a gallon. The spread between California's wholesale and retail gasoline markets was about $1.50 a gallon the week to July 25, about 40 cents wider than a similar spread in the New York market.
California is one of the most expensive places in the United States to produce gasoline because of the state's unique blending requirements and its relative isolation from the rest of the country, which makes securing crude oil to refine pricier.
(Excerpt) Read more at reuters.com ...
“...allows a free enterprise system to exist.” How generous of the great government, duly elected by its citizens, of Kalifornia. They allow freedom. Is that what Kaliforna has? Free enterprise? Wow, now I get your fixation on fairness.
So, for the sake of acuity, I will drop trying to link the slow to drop gas prices and the resultant unfair prices to government actions. Plus, I am agreeing that the companies did not lower their margins, I agree with your math, it seems correct, my public school education math confirms it. Plus, I am agreeing that the companies took advantage of the situation to wring out some extra money from you.
Please tell me what the fair price, or fair margin, is. Surely that is, by your own standards, on topic.
I’ve been told California’s start up businesses have to jump through ten to twenty more, no make that ten to twenty TIMES more hoops that start up businesses in other states.
...
Big Business loves that type of thing. And the gas companies are there to say. I imagine they get along really well with the crooks in Sacramento.
If a company operates comfortably with a certain profit, it should operate comfortably with that same profit when it’s costs drop.
If it make 25 cents profit a gallon when it’s costs are $100 a barrel for crude, and it makes 25 cents profit when the cost of a barrel of crude drops to $30 a barrel, it should not keep 56 cents to increase it’s profits to 81 cents per gallon. It should pass along the 56 cents so the consumer can benefit from the drop in cost.
You still can’t grasp that keeping the price artificially high now, sets up an artificial base that will propel the cost massively higher when crude prices rise. You’re not grasping much of anything here.
As for California allowing a free enterprise system, you seem to want it both ways. You trashed the state for not preventing the business from doing what it did. I mention that it was supportive of a free enterprise concept. Now you begrudgingly belittle it because it did allow a free enterprise decision to be made.
You are one confused person.
Also, Kalifornia has the highest taxes on gasoline, higher than Hawaii. $0.69 per gallon.
Someone in our state government is suing over this against the oil companies.
All extra taxes and blends account for only 16 extra cents a gallon.
Where is the money going?
What I don’t like about the utilities in the state (and this is probably common across the nations these days), is that it is their job to provide energy or water. As the population grows, they haven’t been developing new sources of energy or water.
Now all they do is complain when folks purchase their products. “Oh, you need to use less of our electricity or gas or water.” No, what you need to do as a utility, is pull your head out, and increase your supply.
We have an increasing population. Who knew that would mean more demand for their products? Well..., they sure didn’t.
DUH!
And yet we open the flood gates to whoever wants to come here, and then complain when they use more gas, electricity, and water.
The planners are just plain nuts.
Now it is a “free enterprise concept”. How generous of Kaliforna to let business owners operate under a concept of freedom.
What am I confused about? Free enterprise is the absence of laws and regulations on businesses. The idea is similar to Freedom of Speech or Freedom of Relgion. Freedom is not something the government permits. Freedom is the absence of government laws. Kaliforna is far from free enterprise and that is the problem. If my sarcasm is not clear I apologize.
If it were a free enterprise system gas prices would be cutthroat competitive and you would have prices that drop, and rise, more in sync with most other states. Do you understand your state wants high gas prices? It wants gas to be hard to get? It wants you off the road?
I am trashing the state for all of the laws and regulations that keep Kali from having a competitive market in gas refining and distribution. I am not trashing the Kali gov for not checking the unfair prices. Do you see the difference? Free enterprise is way beyond having the ability to price as you see fit. In fact, since Kali is so far removed from a free enterprise system, I would fully support Kali fixing a fair markup and spelling out how prices should be unfair. Would you? I would just need to know what fair is.
I recommend this book and I will send it to,you for free: “The Incredible Bread Machine”.
Back to margins. Please name the fair price for gas, or the fair margin. It is on topic. I get the idea that you think the margin should be constant. So please tell me in terms of dollars or pennies, what is the fair margin on gas?
I grow weary of watching you squirm.
Gas prices are unfair and now your stamina is declining. Moral outrage must be hard to sustain.
I am agreeing with you, it is unfair, how is it fixed?
“”http://www.bankrate.com/finance/taxes/states-with-highest-gasoline-excise-taxes-6.aspx”";
That’s a link to BankRate. They have Kali at 59c plus 2.2% sales tax plus district taxes.
Or were you thinking of some other taxes?
The government’s take is far bigger than what the evil greedy corporations make.
Looks like your stamina is back. So 14c is the fair profit?
I addressed your concerns in one of my last posts to you.
At this point in time you’re wasting both your and my time.
You respond to my post with the response on point in it, and ask the same question again as if I didn’t address it.
Why should I continue this?
It is fixed by large corporations acting in a responsible manner.
If it costs 60 cents less to make, then return that 60 cents to the public. Keep the profit margins as they were, which they were happy with before the 60 cent drop in costs to produce.
If a gallon costs $3.00 and there is a 60 cent drop in cost to produce that gallon, then charge $2.40 per gallon and the profits will remain the same.
As I address it earlier, what they are doing is keeping the price elevated at $2.76.
Now when crude goes back up by three times, they’ll be charging $8.28 a gallon.
If they did lower the gas now to $2.40, the three fold increase would only be $7.20.
If this were the only time they have done this, that would be bad enough, but it isn’t. They’ve pulled this routine all the way down from when the cost was $100 a barrel.
By rights, if they had passed savings on to the consumer all along, the three fold increase would wind us back up in the $5.00 to $5.50 range.
The consumer isn’t stupid. They see what is going. There’s a reason for people being angry at the oil companies.
If you wish to talk about the state government, pick a thread where that is the topic.
Poor thing. So lost in space...
I keep telling you I concede your point. Now other than your moral outrage how do you suggest keeping gas prices fair? How do you keep them at 14c per gallon? You said you have seen this going on for decades so moral outrage doesn’t seem to work.
Or is this a gas prices aren’t fair because the companies are ripping us off thread and there is nothing to be done about it thread?
Maybe we can take it over to Fairrepublic.
Nobody has the freedom not to buy gasoline.
If you work or want to eat, bring supplies home, or visit friends or travel, you need gasoline.
Don’t be idiotic.
Read the thread if you want to know what my thoughts are on the topic.
So you think access to gasoline is your right?
First of all, where do you get that 14 cents?
I never said the 14 cent reduction was reasoned.
Either you are incapable of reading and grasping what you are reading, or you are just screwing around.
Once again, why are you wasting both of our time?
I’m not sure how you combat the practice of screwing over the public. Gas is a necessity and there isn’t really anything the public can do about it, except call the oil companies out on it and denigrate them in public for what they are doing.
Should the public simply remain silent and allow the oil companies to do as they please without pushing back?
The comment concerning taking it over to FairRepublic is juvenile. You are dismissing the issue because you think this is some childish response to parental decision making.
This is a real and valid issue. The companies deserve to be called out on it.
Aww, you’re having a wee bit of a problem gasping the thread.
That’s okay. I feel for ya.
You’re attempt to be dismissive is only making you look like a child.
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