The higher gasoline prices go, the more I am convinced that price fixing is going on.
One example -
Here in our small town right on the interstate, Gasoline prices have shot up 22 cents per gallon in the last 3 days. Yet none of the gas station received a delivery in those days. Yet one after the other (4 within 50 yds of each other), they all raised prices - and all did it literally within minutes of each other.
The gas in they are selling from their tanks today cost them exactly the same that it cost them last Thursday.
My bicycle is already getting increase usage.
OK - so time for some real data - anyone have any inside accurate info on these questions?
1. What is the actual cost to PRODUCE the gasoline being sold TODAY per gallon?
2. What are the gasoline taxes (state gas taxes here: http://www.taxfoundation.org/variousrates.html)
I remember my parents being friends with a service station owner (you know - the type that use to have a service bay or two for mechanicing, tires, belts, etc. and had a full service island and a self service island) when I was a youngster. I vividly remember the owner saying that at the time, his prices were from 2 to 6 cents per gallon over his cost.
Anyone want to bet the margin is higher now? And that's on top of the massive mark-up on all the foods, drinks, and junk they sell at most gas stations now.
Of course, as we preach here on FR - the consumer's dollars are the right way to regulate business. Well - how many of us can or will quit buying gasoline to "send a message"? I will tell you - it's the same number that jumped on the "gas-out" day that has been semi-organized a couple of times in the last few years.
Why do I feel like I'm being robbed every time I have to buy gas? And don't give me any of the poo that gas is still a bargain - it takes a bigger chunk of my check today that it did 10 years ago. And we drive fewer miles than we use to.
Actually, the model for most stations is to sell gas at tiny margins and make their profits on that overpriced "food, drinks and junk". I'd venture to say retail gas margins are as low as they've ever been.