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.
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?