Posted on 07/29/2016 8:52:37 AM PDT by Lorianne
Wholesale gasoline in California became the cheapest in the country this week, but that change has largely gone unseen at the pump, where consumers are still paying the highest prices in the continental United States to fill up their cars.
Ample inventories along with relatively stable refinery operations and imports has driven down the spot value of gasoline in Los Angeles at the wholesale level by more than 60 cents since mid-June.
However, that has not translated to similarly lower retail fuel prices for consumers because of peculiarities in California's market. The declines in the state's retail gasoline market over that period of time have averaged less than 14 cents, according to data from the U.S. Energy Information Administration.
On Thursday, wholesale California gasoline was trading below $1.20 a gallon. The spread between California's wholesale and retail gasoline markets was about $1.50 a gallon the week to July 25, about 40 cents wider than a similar spread in the New York market.
California is one of the most expensive places in the United States to produce gasoline because of the state's unique blending requirements and its relative isolation from the rest of the country, which makes securing crude oil to refine pricier.
(Excerpt) Read more at reuters.com ...
I’m not dismissing anything....I’m calling you out on your childishness.
You believe you have a right to product “x” at company profit margin “y” that you believe is fair.
And when you don’t get what you want, as with gas pricing, you throw a tantrum and whine about it.
Grow up.
Look at what has been taking place for the last five plus years ace.
The price of crude has dropped by two thirds, while the price at the pump has dropped by around one third.
There are two negative aspects of this.
One, the public is overcharged.
Two, this sets up an unrealistic increase in price once the cost of crude goes back up.
The cost of gasoline that should have been much lower when it is tripled the next time, will instead be elevated much higher than it should be, when the cost is tripled.
Observing this and talking about it is consumer advocacy. That means you as well bright path.
I never said I was owed access to gasoline. I said large corporations should show some fiduciary responsibility in pricing.
They should not screw over the public simply because the public has no choice but to by gasoline at any price.
Saying the public is always free to stop buying gasoline is about as adult as saying people can always stop drinking or eating. If you stop buying gas to get to work, in short order you won’t be eating or drinking.
You’ll be out on the street with your family in tow.
I’m the childish one? LOL
Don’t suggest something a nine year old would, and then lecture others.
The only fiduciary responsibility a corporation has is to maximize profits.
Who are you to determine what appropriate profits are?
Who are you to determine if the public is being overcharged?
It is the individual consumer that advocates for himself, when he makes a free choice to purchase a good or service at the price the producer is offering.
What you are advocating is price controls...which ALWAYS eventually results in shortages.
Another words you’re just a moron.
Thanks for confirming it.
Won’t answer simple questions, hurls insults instead.
Voting for Hillary, eh?
Sorry about that. What is the fair margin on gas? I keep asking and you won’t answer but that was a poor guess.
I didn’t mean to make a juvenile reference but now that you mention it children do get hung up on fairness. I always taught mine that life wasn’t fair.
Your concern is valid your are being charged an amount much higher than need be charged. You now readily agree that your course of action is public denigration and pushback. Despite as you said watching this for decades.
I offer a path out. Try cutting back on the BS regulations and taxes. Get rid of the onerous laws that prevent entry into the Kali market by more distributors and refiners. Then the companies will beat up on each other like they do in most states.
Or go the rest of the way with government control over the industries and regulate prices. I’m sure the beneficent gov of Kali will be fair and prices will move in lockstep with a fixed margin.
Just a simple law. Set a fair margin, add taxes, add the wholesale price of gas and that is the total at the pump. Does that work for you?
You are. Hey, do what you’ve got to do there arse.
Way off topic but you said it first, gas is a necessity. Gas is not a necessity and Kali is well on its way to proving it. Your future is electric and mass transit. If you want to teach the greedy gas companies a lesson buy yourself a Prius. I hear you also get HOV access and tax credits in Kali.
Now water, that’s a real necessity. Kali must be the fairest state in the union when it comes to water.
Yes, electric is an alternative. Try pricing an electric sometime.
As for the federal and state tax incentives, laughable.
You’ve got to have a massive mortgage to utilize any write-off.
As for the HOV lane, the state giveth and the state taketh away. You never know when or how long your car will be covered.
I did buy a hybrid. When I bought it the state said I would never have to have it smog checked. They did away with that. At one point I could have driven it in the carpool lane. They did away with that too.
Frankly, I don’t drive in the carpool lane even when I can. Everyone wants to go 80 and I don’t give the highway patrol a free shot.
BTW: the hybrid is the best car I’ve owned.
I get up to 34 miles per gallon on long trips and about 25 around town. It’s a Mercury Mariner and I haven’t had one bit of trouble in the ten years I’ve had it.
It’s a sure footed four wheel drive and an SUV that allows me to haul stuff around.
I’m in favor of the company setting it’s own margin.”
**** But you do not like the results.
“Well, if you have a better idea, go for it. I wouldn’t opt to get government involved because our government gets everything it addresses foulled up.”
***** My answer is less government not more but you claim that is off topic.
“Not every private industry decision is above board, and I think it’s reasoned to addresss obvious malfeasance.”
***** So there we have it. The margins were unfair based on your reasoning and therefore its reasoned by you the malfeasance has occurred.
“All I am asking is that the oil corporations give a sucker a break.”
That is the perfect summary of your argument and I could not agree more.
Look, I provided a fair amount of information addressing the profit margin, and explained I didn’t expect the company to make less profit on each gallon.
You glossed right over that to make some snide comment about me not wanting to set the profit margin, and not being happy when the company did just that.
There is no reason for any of us to be unhappy, when the oil companies try to make more profit per gallon when the price has dropped by 60 cents.
Keep the same profits and share the drop in costs with the public. That is reasoned, and there’s really nothing for you to object to there.
That is a fair/reasoned outcome for everyone.
Should have read:
There is no reason for any of us to be happy, when the oil companies try to make more profit per gallon when the price has dropped by 60 cents.
True! We see eye to eye on that and now coming full circle; Remove all the barriers to competition in Kali and watch the producers/refiners/retailers beat each other to death until they are barely squeaking by.
With all due respect, I have not come full circle.
This has been my take on it from my first post.
Honestly, along the other lines you touched on, the state would be much better if the Legislature was closed for five years.
Every session they screw things up more. At least freeze it where things are, and quit digging the hole deeper.
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