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To: dr_lew

No, why would I? It is very plausible to assume that other people had the same idea as you to buy at 3.94 thus reducing the supply while there was a sharp spike in demand. That will raise the price immediately. Also most gas stations only carry 1-3 days worth of supply.


15 posted on 05/23/2008 10:10:06 PM PDT by neb52
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To: neb52

(Please excuse my reply to QBFimi, I became confused as to my correspondents.)

I think you have a naive theory about how gas stations operate. They are not independent dealers who set their own price. They are mere vendors, as far as I understand it, and their price is dictated to them as arbitrarly as it is perceived by you and me, if I’m not mistaken. I’m sure from my own perception that all the stations in the area, representing all the companies, jumped their price on the same day by very much the same amount.

And you know, if it dropped by $0.05 one day, whose to say it could not have dropped by another $0.05 or $0.10 a day or two after that? Or stayed the same for a few days more?

At any rate, the jump of $0.21 at one shot was unprecendented over the last few months, even though the trend was steadily upward. How about two months from now? What then?


20 posted on 05/23/2008 10:30:38 PM PDT by dr_lew
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