Re: gas prices vs. diesel

Posted by john in la on July 24, 2007 at 05:25:54 from (67.35.255.22):

In Reply to: gas prices vs. diesel posted by MoMike on July 24, 2007 at 04:36:53:

Because the price of diesel is also set by supply and demand.
Just because the demand for gas goes up does not mean that diesel changed. This is why diesel prices change at the start of winter and does not effect gas; heating oil prices affect the diesel price.

The price that a station pays for gas or diesel has very little to do with production cost or the price of oil. Yes they will not sell it at a loss; but the stock market controls the price. You can watch the stock market during the day and predict the change in the wholesale price that will come out that afternoon.

The price of gas and diesel sold on the wholesale level changes daily. Sometimes more than that in a volatile market and is figured on the thousand of a cent. It use to be that the wholesale price came out in the afternoon and the price changed at midnight. Now the price changes at 6pm for changes in the market and then again at midnight.

A station will most times eat the cost difference of all these changes rather than changing the pumps every day; and mostly because his street price is set by the market also. A lot of times a station on one side of the street may be making .07 a gallon while the guy across the street is making .15 a gallon. The guy making .15 is not going to come down a penny as long as he is the same street price as the guy across the street.

Replies:

• Re: gas prices vs. diesel VADAVE 08:58:33 07/24/07 (0)

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