Fuel Price Justification

[bbqfan5909]

I'd think the larger volume dealers are the first ones having to buy at the high prices, hence why their prices increase quicker. And my understanding, not much money is made on fuel at pump, but when you go inside and buy merchandise?

How do the retailers justify the price differences in fuel? I drive from Yoakum to El Campo every day, approx 67 miles one way. Today i actually thought about fuel price differences along the way. I saw diesel prices vary from $4.39 per gallon in El Campo to $5.13 per gallon at the Loves Truck Stop outside of Ganado. Yoakum has diesel at $4.59 per gallon.
I fully understand that some of the variance depends on the supplier, but what I do not understand is HOW the Truck Stops are the HIGHEST price for Diesel. Loves at $5.13 per gallon and TA at $4.92 per gallon.

Does anyone have any Honest Insight on how the variances in prices can be justified?

Build Back Better???? I think NOT.

[BlackoutRam2500]

High prices = Demand destruction. That is what the government is after. Raising interest rates can only do so much. Look around you. Stock market is down, lending rates are higher, now gas is higher. There isn't a segment of the population that isn't being affected by one of the above.


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[M16]

Prices independent businesses charge don’t need to be justified. Pay it or go somewhere else.

[Dusty Britches]

it all depends on what they paid for the fuel in their tanks. A slower station may have fuel from 2 days ago that they paid less for. a busy station may get a couple loads a day and each load is a different price

This ^^.

Stations buy fuel on contracted price, which is typically a spot wholesale price. Some stations contracted to buy huge amounts and got better pricing and they spread out their deliveries so they were able to keep prices lower for longer periods of time.

Some stations move very high volumes of fuel and go through that reserve much faster. And, some stations, like Loves, are selling today's gas at the futures prices, which is much higher.

The good thing for us is, we all have lots of options on where to buy fuel. Don't like that price, go down the road.

I will also say, sound business practices - a low pump price brings more people into the store which is where the high margin items are. Stations may even lose money at the pump to get people into the store.

[Drycreek3189]

my friends family has been in the fuel business for decades.They have owned stores and also and currently own transports. he said to me one time many years ago that the retail store makes about 5-10 cents a gallon and rely on the in store purchases for most of the profits. I dont know for sure but i bet its the same way now. the gov. makes more profit on a gallon of fuel that the store does.

As a former part owner of a stop-and-rob I can confirm this. We made a nickel per gallon on gas and diesel but everything else was much more expensive inside the store. You pay a price for “convenience” !

[Capt.Brown]

They at the most make .10 per gallon.

[OldRiverRat]

Their margins are not on the fuel, they want to be able to advertise a lower price than their neighboring competitors to get you in the store to buy the their high margin merchandise

Do you think bucees makes money on the sale of ice?
They know how many hunters and fishers pass by and will stop to grab “cheap” ice only to buy another $30 worth of merchandise while they are there

The price difference can be associated with many things within their supply chain. Did they hedge and buy more fuel for a particular month and prices move up allowing them to sell cheaper that month than the guy next door?
Did they underestimate volumes and have to pay more spot??

I wouldn’t be too worried about the price differences at this point , I’d be more concerned with where things are going to top out.

Bunkers for our ships went to over $900 ton today
Never been this high and fuel is roughly 50% of the operating costs for us (and most shipping companies in general) so you can imagine the increase in prices that are coming for everything
Remember how high the cost was to ship one container? Now add another $2-300 per container fuel surcharge or more

It’s about to get painful!


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[Parramore]

We are finally cutting off Russian oil imports, which like or not is a good move. Let's get those pumps going West Texas! Lets open up drilling in Alaska. F*** Russian buy American.

[coy-ote]

I’d like to know how many politicians have their hands in the pockets of all this green power stuff they are pushing, once they pass these legislations they mightygotten in on the ground floor of the companies and make a fortune, that’s why PAC funds shouldn’t be allowed

[mpotts]

We are finally cutting off Russian oil imports, which like or not is a good move. Let's get those pumps going West Texas! Lets open up drilling in Alaska. F*** Russian buy American.

This ^^^ Merica!!!

[LivinADream]

Always found it strange that I can buy gas in Kansas 500 miles (guess) from the closest refinery, than I can at home (beaumont) within 20 miles of 50 refineries. Is it cheaper to send the gas from beaumont to kansas than it is from beaumont to beaumont?

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[Throwin Darts]

Prices independent businesses charge don’t need to be justified. Pay it or go somewhere else.

This right here.

Why would a retailer need to justify its price to anyone? They set the price to achieve the level of targeted sales based off demand. In a free market you have the right to choose to pay it or keep driving to the next place.

[sharpstick35]

Price gouging by the middle man. Lock em up!

it's not price gouging unless there is an emergency declaration. they can charge whatever people are willing to pay, just like any other business.

[Bowanta]

Always found it strange that I can buy gas in Kansas 500 miles (guess) from the closest refinery, than I can at home (beaumont) within 20 miles of 50 refineries. Is it cheaper to send the gas from beaumont to kansas than it is from beaumont to beaumont?

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So True.. I too have often wondered that.

[stratos201proxl]

my friends family has been in the fuel business for decades.They have owned stores and also and currently own transports. he said to me one time many years ago that the retail store makes about 5-10 cents a gallon and rely on the in store purchases for most of the profits. I dont know for sure but i bet its the same way now. the gov. makes more profit on a gallon of fuel that the store does.

you are exactly correct on that still the same today