Gas is $1.96 in South Carolina. How about where you are?

[John Anthony]

Comparing prices in different states is a challenge. There are basically 4 components of a "per gallon" price. 1. Crude oil 2. Costs of the company doing the refining PLUS the profit they make 3. Costs of the distributor and marketing costs PLUS profits for them 4. State and federal taxes I'd add a "fifth" of general market conditions i.e. what can a gas station get. The 7th largest refinery in the country is in Indiana. They have lost over half of their capacity. It's the largest refinery in the midwest. Gas prices have reacted to that. Expect a 30 cent to $1 increase. For the record' date=' I own no stock in oil companies.[/quote']

 

Reminds me of the days when Enron would start fires in California. Remember that?

[Clyde]

South Carolina has no state tax on gas.

 

SC has a 16 cent per gallon tax and I think the state legislature approved a 10 cent increase.

 

KY, by comparison, is about 30 cents.

 

SC stations also pay lower costs from their distributor than many states.

[Clyde]

Reminds me of the days when Enron would start fires in California. Remember that?

 

I do not.

[John Anthony]

I do not.

 

That's how Enron stayed alive the last 18 months before all the higher ups went to prison. They fabricated shortages.

[Jim Schue]

Comparing prices in different states is a challenge.

 

There are basically 4 components of a "per gallon" price.

 

1. Crude oil

2. Costs of the company doing the refining PLUS the profit they make

3. Costs of the distributor and marketing costs PLUS profits for them

4. State and federal taxes

 

I'd add a "fifth" of general market conditions i.e. what can a gas station get.

 

The 7th largest refinery in the country is in Indiana. They have lost over half of their capacity. It's the largest refinery in the midwest. Gas prices have reacted to that. Expect a 30 cent to $1 increase.

 

For the record, I own no stock in oil companies.

 

Not fetching it. Even if a refinery goes down, the cost to the refinery is half what it was a year ago, and the price at the pump is still basically the same. No reason for it to shoot up 12 cents (I'm sure it was 30 cents in Speedway markets) when two days ago they were saying it's dropping off the table because of multiple international factors and should be well under $2 before Christmas.

 

When exactly did this Indiana refinery go down? And if refineries make that much of a difference, I've never figured out why gas prices in Somerset — where there's a refinery downtown — are not 50 cents cheaper than anywhere else across the state. No transportation costs to absorb there. Just gouging.

 

Shouldn't gas prices in Ashland — the site of a massive refinery — be minuscule? Don't Ashland folks have to go to Carter Co. to find cheap gas prices, or has that changed since the last time I was there? As far as I know, there are no refineries in BG, Corbin or Henderson, but gas prices there tend to be the cheapest in the state. Why is that?

 

You may not be an oil stock investor, but you're being a staunch market apologist. Sounds like just one more lame excuse to keep us hosed.

[Clyde]

Not fetching it. Even if a refinery goes down, the cost to the refinery is half what it was a year ago, and the price at the pump is still basically the same. No reason for it to shoot up 12 cents (I'm sure it was 30 cents in Speedway markets) when two days ago they were saying it's dropping off the table because of multiple international factors and should be well under $2 before Christmas.

 

When exactly did this Indiana refinery go down? And if refineries make that much of a difference, I've never figured out why gas prices in Somerset — where there's a refinery downtown — are not 50 cents cheaper than anywhere else across the state. No transportation costs to absorb there. Just gouging.

 

Shouldn't gas prices in Ashland — the site of a massive refinery — be minuscule? Don't Ashland folks have to go to Carter Co. to find cheap gas prices, or has that changed since the last time I was there? As far as I know, there are no refineries in BG, Corbin or Henderson, but gas prices there tend to be the cheapest in the state. Why is that?

 

You may not be an oil stock investor, but you're being a staunch market apologist. Sounds like just one more lame excuse to keep us hosed.

 

I think I covered all of the factors so I'm not sure why there's a question. #5 cannot be ignored. You can say I'm an "apologist" but I say I don't see why gas companies can't charge what they want like any other business.

 

I've said it 1,000 times. Not enough people are bothered by the cost of gas to force change. Why do we expect the oil company to change if we're not forcing their hand?

[Wireman]

I got $2.09 in South Carolina the other day

[Clyde]

Not fetching it. Even if a refinery goes down, the cost to the refinery is half what it was a year ago, and the price at the pump is still basically the same. .

 

Crude oil cost is about 50% of the total cost to the consumer for a gallon of gas.

 

So if the price drops by half as you say then that means we should see about a 25% decrease to our wallet (50% * 50%).

 

According to Gasbuddy the average price of a gallon was about $3.50 a year ago. So if we reduce that by 25% since the cost of crude is half of what it was we should see it be about $2.63.

 

According to Gasbuddy the average per gallon charge a year later is about $2.60.

[Jim Schue]

I think I covered all of the factors so I'm not sure why there's a question. #5 cannot be ignored. You can say I'm an "apologist" but I say I don't see why gas companies can't charge what they want like any other business.

 

I guess it's just the socialist in me, but since this country is designed to make it darned near impossible to have a job and not have a car, then I look at gas as a necessity and not an optional, kind of like water, heat and electricity. So there's that, to answer why they shouldn't be able to charge whatever the hell they want.

 

As far as your "five-point plan," why is it that all five dominoes have to fall in line for the average Joe to catch a break, but only one link in the chain breaking gives Big Oil an excuse to put the screws to us? That's just not right, market factors or otherwise.

 

 

 

I've said it 1,000 times. Not enough people are bothered by the cost of gas to force change. Why do we expect the oil company to change if we're not forcing their hand?

 

And as I said, it's just not reasonable for most people to just pick up and move. Sure, it might be no problem for you. I've watched your posts over the years and I gather that, at worst, you're quite comfortable financially. Otherwise you wouldn't put posts up about "great investing decisions" and such. Those options are not available for the majority of Americans anymore. It seems like most people who grew up middle-class are finding themselves pushed into poverty because of this attitude.

[Jim Schue]

Crude oil cost is about 50% of the total cost to the consumer for a gallon of gas.

 

So if the price drops by half as you say then that means we should see about a 25% decrease to our wallet (50% * 50%).

 

According to Gasbuddy the average price of a gallon was about $3.50 a year ago. So if we reduce that by 25% since the cost of crude is half of what it was we should see it be about $2.63.

 

According to Gasbuddy the average per gallon charge a year later is about $2.60.

 

Gas prices do not work that way in the real world.

[John Anthony]

I think I covered all of the factors so I'm not sure why there's a question. #5 cannot be ignored. You can say I'm an "apologist" but I say I don't see why gas companies can't charge what they want like any other business. I've said it 1' date='000 times. Not enough people are bothered by the cost of gas to force change. Why do we expect the oil company to change if we're not forcing their hand?[/quote']

 

Clyde,

 

Why do you all skip over the fact that demand is way down? Not just in the U.S. everywhere, China's economy is shrinking.

 

Even if every American owned a hybrid it wouldn't matter that much. Demand is already near all time lowes.

[THUNDERBIRDS]

We have a Cabin in Pickens S.C. and when we travel there the Fuel is always about 40-45 Cents cheaper per gallon than in Kentucky. Pickens is also the Poorest County in S.C. The state just built the Pickens Blue Flame a new High School there about 4-5 years ago that was rumored in the 50-60 Million Dollar range. It's also the same High School that former Bengals Head coach Sam Wyche is the Off Coordinator for the football team. Or at least use to be! He resides in Pickens S.C.

 

Pickens is about 20 Miles due north of Clemson....

[Clyde]

I guess it's just the socialist in me, but since this country is designed to make it darned near impossible to have a job and not have a car, then I look at gas as a necessity and not an optional, kind of like water, heat and electricity. So there's that, to answer why they shouldn't be able to charge whatever the hell they want.

 

As far as your "five-point plan," why is it that all five dominoes have to fall in line for the average Joe to catch a break, but only one link in the chain breaking gives Big Oil an excuse to put the screws to us? That's just not right, market factors or otherwise.

 

 

 

 

 

And as I said, it's just not reasonable for most people to just pick up and move. Sure, it might be no problem for you. I've watched your posts over the years and I gather that, at worst, you're quite comfortable financially. Otherwise you wouldn't put posts up about "great investing decisions" and such. Those options are not available for the majority of Americans anymore. It seems like most people who grew up middle-class are finding themselves pushed into poverty because of this attitude.

 

I am comfortable, fortunately. However, that doesn't make anything I say false. Your posting history says you have a chip on your shoulder when it comes to money so I get where you are coming from.

 

As to your first point about the country being set up to where we need a car , again, that's by choice and choices that each person makes i.e. what type of area do I want to live, am I willing to move away from "home," do I want a small car or a truck, do I want to go through any specialized training, do I like cities or an urban environment. All of those are choices. As I pointed out with my "opportunity cost" comment every choice we make comes with a cost.

 

Lastly, it's a damn myth that people can't invest. It doesn't take much to get started. This isn't a case of the Vanderbilts and Carnegies only having money to "gamble."

 

I say this with love. You and others will see clearer when you stop with the "man trying to keep us down" thinking. Trust me. I'm a perfect example of that and I'm just one of millions.

 

Try to solve the problem instead of yapping about how unfair it is OR realize that most people just don't see it as a big enough problem to actually change it.

[Clyde]

Clyde,

 

Why do you all skip over the fact that demand is way down? Not just in the U.S. everywhere, China's economy is shrinking.

 

Even if every American owned a hybrid it wouldn't matter that much. Demand is already near all time lowes.

 

Demand is but one factor. What do you think happens when demand is down? They don't produce as much.

[Clyde]

Gas prices do not work that way in the real world.

 

They do and the math just showed it.

 

However, no price paid by a consumer for any product is simply a "math problem." Why you guys keep ignoring that these are "for-profit" companies is beyond me. If they can max a profit they will - like every other business.

 

Now they have to be careful, though, as we saw in 2008, 2009. If the price gets too high then everyone loses. It's why we don't see gas at $10.00 per gallon even though you and I and almost everyone else would pay it if we had to. It would have negative long-term impact on them.