[Patangeles]

Uh-huh. We imported a bunch of gasoline from offshore refinieries, and we paid through the nose for it.

If the companies weren't in cahoots with each other, the ones who had more supply on hand would have underbid the others to capture market share. I guess oil companies don't work like airlines, telephone companies, etc. Why is that?

[Poohbah]

If the companies weren't in cahoots with each other, the ones who had more supply on hand would have underbid the others to capture market share.

Actually, the problem is that we had to buy a bunch more gasoline than previously estimated, and we needed it delivered right way.

It doesn't matter what the commodity is, if you order a lot of it for delivery on very short notice, it will cost you more than if you order a lot for delivery in several months.

I guess oil companies don't work like airlines, telephone companies, etc. Why is that?

The airlines and telephone companies suffer from overcapacity. The refinery sector suffers from having barely enough capacity for routine operations inside the United States, IF nothing goes wrong.