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Re: Good news for some.


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Posted by John in La on November 30, 2014 at 18:41:44 from (96.33.136.54):

In Reply to: Re: Good news for some. posted by IaGary on November 30, 2014 at 17:16:15:

Gary that makes a lot of difference. A question not a statement.

It takes long enough to change supply that nothing will be done with the diesel; but premium supply may be increased.

They ship more No 1 in January because it is a colder month so supply will catch up; or to put it right demand will be normal for the month of the year.

Premium will have to be increased or they will have to stop selling non ethanol 87. They have 2 choices with 84. Mix it with ethanol or mix it with premium.

The reason it takes so long to increase supply is drawn out. Let me speak in the 3rd person to make it easy to explain.

I am a wholesale supplier. I do not refine gasoline or drill for oil. I buy gasoline on the stock market from Shell or Exxon ect.
When I buy this gas I better have a place to store it. So I contract with a loading rack in your area to store the gas.
Problem is my contract gives me rights to xx storage. I move xx in and have to move that same xx out in same month.
I can not buy extra because I do not have enough storage.
It is broken down into weeks or even days based on the size of the tanks the loading rack has and how often they get a shipment but by contract I have to move xx gallons threw this loading rack per month.
I price my gas everyday for what I will sell it for. If I am the low bidder unbranded stations will buy my gas. If I am not the low bidder they will buy from a different supplier that day.
This keeps me competitive in price because I must move xx gallons this month. If I do not move xx gallons the loading rack has the option to sell my unused storage to another wholesaler that will move product.

So as you can see changing how many gallons I can move threw your local loading rack is complicated.


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