Louisville has a history of sudden jumps and fast declines in gasoline prices. Since they are the same oil/gasoline companies that exist nationally, it appears to be local suppliers and retailers causing these price changes.
I see now. This explains why gas went UP $.30 a gallon in Louisville yesterday.
The cost of the raw product is expected to go up. In order to protect itself, the Oil Industry must purchase tomorrow's gas at tomorrow's prices to provide the gas tomorrow that you want today. The cost of the next gallon of gas you buy must be purchased at the higher anticipiated cost than today's gas was, yesterday when it was in the ground. This is why, when gas goes up, it goes up quickly, in response to the increased cost of raw materials endured by the Oil Industry on your behalf.
On the rare occasion when the cost of raw crude goes down, it takes several months for them to change those little numbers way up there on the signs. I mean, they have to get the ladder out and everything.
[/BULL]
It jumped up .14 in SE Michigan this morning. Has anyone heard of a refinery fire or something?
Mike
``The drop in refinery runs may also be driven by economics,'' Evans said. ``Tesoro said this week that it was cutting fuel output because of poor margins.''
Tesoro Corp., the owner of seven U.S. refineries, cut fuel production this month after record crude-oil costs eroded profit margins, the San Antonio-based company said in a statement on Jan. 14.
Mike
Louisville has a history of sudden jumps and fast declines in gasoline prices. Since they are the same oil/gasoline companies that exist nationally, it appears to be local suppliers and retailers causing these price changes.