Speedway is the market leader, and sets the prices. Other stations can't help but follow, which creates the volatility. Yes, Speedway can be faulted for daily price changes, as they are charging based not on how much they paid the distributor for the fill-up, but on the volatility of oil speculation market, which makes no sense.

Absolutely. It's just free market common sense. Speedway is the local 800 lb. gorilla, and they do not hesitate to take cut-throat advantage of it. :thumb:

 

Trust me, you are paying for the stuff you think you are getting free CC and you are paying for it big time!

 

Nothing and I mean nothing is free, in business!

Exactly.

Filled up at Speedway today for $2.39 a gallon (without my November $.03 discount :irked:).

 

The UDF across the street was also $2.39. The BP & Chevron less than 2 miles down the road were both $2.45.

 

The BP 20 miles away was also $2.45.

 

Clearly, Speedway is the root of all evil.

Sounds like Speedway's smarter then their competition.

 

They drive up the price to say, $2.45 a gallon. Knowing that their competition would raise their prices to match, Speedway counters with their Speedy Rewards program to knock their price down the $2.42 a gallon while the moron's across the street are stuck on $2.45.

 

BRILLIANT!!!

Filled up at Speedway today for $2.39 a gallon (without my November $.03 discount :irked:).

 

The UDF across the street was also $2.39. The BP & Chevron less than 2 miles down the road were both $2.45.

 

The BP 20 miles away was also $2.45.

 

Clearly, Speedway is the root of all evil.

 

$2.36 at Ameristop without a Speedway in the area.

 

They're not the root of all evil but they're certainly not doing the consumer any favors. Should they be? That's the great marketing question.

Speedway is never the lowest price in my area. It is Swifty or Kroger with 15 cents off with 1-2-3- rewards Kroger card.

Trust me, you are paying for the stuff you think you are getting free CC and you are paying for it big time!

 

Nothing and I mean nothing is free, in business!

 

That sums it all up in a nutshell. The Oil Companies control the prices as they want, this filters down to the gas station chains which are owned by the greedy oil companies and guess who gets hosed??? Yep, the good ol consumer who has to buy gas.

Our area has a few Speedway stations, Speedway is owned by Marathon Oil who has a refinery in our area of NEKY/EKY. Even though a refinery is essentially in our backyard compared to other locations this does not lower the price of gas at the stations or keep it from jumping like was described by the your post. My opinion is that Marathon Oil and/or any Oil company can whine and cry all they want. They can do some things to lower prices but choose not to.

I worked at Ashland Oil in the NEKY area of Russell/Ashland and witnessed what imo were the low levels that a company will go to. AOI's CEO chose to move the company headquarters to NKY/Covington are and leave this entire area high and dry so to speak, costing alot of people their jobs. Employees and contractors alike felt it (many jobs lost) and that of course filtered down to local business's hurting (stores,restaraunts,etc.) along with the companys support of many local schools and other area contributions to organizations. Congrats to the people of NKY on getting the company several years ago and I hope the now nc. admin doesn't do the same to you as they did to the people and communities that supported then 110%, even when some were coming out trying to make aquick buck on what were some imo some ridiculous law suits. The NKY area has other major companies that our are doesn't so I don't think there would be quite the impact there tht was here should you lose AI,inc.. Here they (then AOI,inc) were THE big fish in a small pond, now they are amoung others.

 

I apolgize for getting off topic somehat and I will finish my post by saying that if anyone thinks that any oil company (who owns and controls the station chains) cares the least about us then "click your heels three times and say there is no place like home" and think again.....the fat cat board of diectors, CEO's, top management care about themselves......Period. My family does not and will not do business at any Speedway station, even thoug I realize the oter stations get thier gas from the same refinery at least can cut out support of one of their chains in Speedway.

JMO course.

Edited December 17, 200916 yr by oldrambler

Absolutely. It's just free market common sense. Speedway is the local 800 lb. gorilla, and they do not hesitate to take cut-throat advantage of it. :thumb:

 

Exactly.

 

:thumb::thumb::thumb::thumb::thumb:

So many educated people...yet such a misunderstanding of basic economics.

 

Do you all really think that all prices are set by Speedway?

 

Prices are set by supply and demand. Demand is inelastic relative to supply, so we are subject to short-term price fluctuations. Speedway responds to the price fluctuations more quickly than anyone- raising prices slightly earlier, AND lowering prices slightly earlier. They aren't setting prices.

 

Colonel Crazy is right- what is the reason that Speedway can respond (raise prices) more quickly? It is because they have a loyal customer base. Why do they have a loyal customer base? Because they have programs that reward repeat purchasers. If this weren't the case, then when Speedway raised prices, other gas companies would keep their prices low and flourish- but Speedway has rewards for using Speedway.

 

How has Speedway become the market leader? Speedway obtained their market leader position by treating their customers well. What the heck has any other NKY gas station done for you, besides blindly follow Speedway, except without consumer rewards?

 

In any case, Speedway doesn't SET prices, they just respond more quickly to fluctuations (up or down). That's just being effective, not any more selfish than the other gas companies. Also, keep in mind that Speedway lowers their prices before anyone else does.

 

FWIW, I never go to Speedway (except when I'm in Lexington). I generally use Thornton's or Sunoco in NKY.

So many educated people...yet such a misunderstanding of basic economics.

 

Do you all really think that all prices are set by Speedway?

 

Prices are set by supply and demand. Demand is inelastic relative to supply, so we are subject to short-term price fluctuations. Speedway responds to the price fluctuations more quickly than anyone- raising prices slightly earlier, AND lowering prices slightly earlier. They aren't setting prices.

 

Colonel Crazy is right- what is the reason that Speedway can respond (raise prices) more quickly? It is because they have a loyal customer base. Why do they have a loyal customer base? Because they have programs that reward repeat purchasers. If this weren't the case, then when Speedway raised prices, other gas companies would keep their prices low and flourish- but Speedway has rewards for using Speedway.

 

How has Speedway become the market leader? Speedway obtained their market leader position by treating their customers well. What the heck has any other NKY gas station done for you, besides blindly follow Speedway, except without consumer rewards?

 

In any case, Speedway doesn't SET prices, they just respond more quickly to fluctuations (up or down). That's just being effective, not any more selfish than the other gas companies. Also, keep in mind that Speedway lowers their prices before anyone else does.

 

FWIW, I never go to Speedway (except when I'm in Lexington). I generally use Thornton's or Sunoco in NKY.

 

Then why do gas prices mostly move in conjunction with the speculation market? Those prices are completely irrespective of the actual supply (the lack of which creates demand). That tank got filled up by the distributor at a fixed price -- the distributor's price didn't retroactively go up 20 cents on the gallon three days later -- so that price should remain the same until the tank is depleted, or unless there is legitimate evidence of a real shortage.

Then why do gas prices mostly move in conjunction with the speculation market? Those prices are completely irrespective of the actual supply (the lack of which creates demand). That tank got filled up by the distributor at a fixed price -- the distributor's price didn't retroactively go up 20 cents on the gallon three days later -- so that price should remain the same until the tank is depleted, or unless there is legitimate evidence of a real shortage.

 

I'm not sure if I have time right now to comment on speculation in commodity markets, but I will comment on the faulty logic behind the bolded for now: prices are based on both historical costs AND estimated future costs.

The price jumped on Route 18 in Florence today Thursday 12/17 from 2.39 at 8am to 2.59 at 6pm.

 

Funny how the prices fall at .02 and .03 cents at a time over a two week period but jump .20 cents at a time.

 

It's not a supply and demand market that we are in any longer but in a market where companies are creating there own demand by reducing the supply of there product to keep the price high! If it were a supply and demand market I wouldn't complain but sorry guys, it isn't any longer!