OT: katrina ...

[Alma J Wetzker]

Tom Wilson wrote:
> On Fri, 2005-09-02 at 09:39, Michael Hipp wrote:
> 
>>Ronnie Gauthier wrote:
>>
>>>I live next door to a station. On the other side of me is a used car 
>>>lot then another station, then a street and another station. None has had a 
>>>tanker in the last four days yet their gas jumped from 2.48 to 3.19,
>>>who is doing who??? Stations take advantage of rising prices to gouge, 
>>>plain and simple, nothing else.
>>
>>It's not that simple.
>>
>>I have a close friend that owns a Shell station here. He says they have no way 
>>to know what their next load of fuel will cost so all they do is follow 
>>Wal-Mart's posted prices. Figuring that since WM owns their own oil company, 
>>they probably have the best intelligence as to what is going to happen.
>>
>>So prices go up ahead of the cost. But the same happens on the way down. As 
>>soon as one station gets a cheaper load of fuel and lowers its price, they all 
>>must do so and so they are selling that expensive load in the tanks now too 
>>cheaply. It cuts both ways.
> 
> 
> Except that when they raise prices it is a significant order of
> magnitude more than when they lower it.  
> 
> The price of a barrel of oil on the market goes up a dollar, the price
> of a gallon of gas goes up $.15.  The price of a barrel of oil falls $5
> the price of a gallon of gas goes down $.05 if that much.   Go figure.
> 
[snip]

Not quite the same.  It is true that Gasoline comes from oil, so the 
cost of oil makes some difference, but gasoline comes from a refinery. 
It is refinery capacity that has the most bearing on gasoline cost.

<dons asbestos underclothing>
Federal regulations mandate each region of the country get boutique 
gasoline blends, further jacking up the price.  It is not just refinery 
capacity, it is a specific type of refinery capacity.  The last refinery 
built in this country a long time ago.  (I think I read 1978)  No one 
wants a refinery anywhere near where they live.  Between government and 
neighbors, prices will only go up.
</flame retardant protection>

     -- Alma