Can Someone Explain Something to Me?

Question. Gas is at $1.98 on the exchange today. Now I think that is what its going for on the world market. So lets say here in Florida you add in the state and federal taxes which is $.52
www.floridastategasprices.com...

You figure you add in $.10 for the gas station that means I should be paying $2.60 for gas or around there. WHY AM I PAYING $3.56!!!!!!!!!!!!!!!!!!!!!!!!!!

Someone is either gouging or something or maybe there is a logical explanation. Please enlighten me.

reply to post by mybigunit
What about transport costs? Also, the cost per barrel does not include refining. The retail price is set by the seller, i think 10 is low considering ther is only 42 gallons a barrel.



[edit on 8-10-2008 by atlasastro]

reply to post by mybigunit


Of course they're gouging!! Bush only has a few months left in office, so that means the oil companies aren't going to be in power anymore and they won't be able to make their billions. They're trying to leave with a few billion in their pockets.

Serious question. Is that considered expensive at $3.56?

Oil is sold as oil isn't it, before the refining process to produce gasoline. You factor in tax and station, but not refining.

Current gas futures are running $2.05 / gallon the OP is looking at gas and not oil prices but it does take time for the futures price to work it's way to the stations. Usually it's a 2 - 3 week delay. The stations are selling gas that was traded a few weeks ago so you need to look back at those prices to determine if you are being gauged. Another factor in the price is the stations proximity to a pipeline. The further the gas is trucked to the station the more expensive the gas.

Originally posted by Sendran
Serious question. Is that considered expensive at $3.56?

Yea, its expensive for the US. We pay the Euro equivalent of that for two litre's here in Ireland.
Thats two fifths of a gallon. Prices have risen over the last few years but barely in comparison to the US.

[edit on 8/10/08 by Dermo]

Here's one explaination... it just takes a while:
Why gasoline follows oil up but not down

There is a rocket and feather aspect...

... Human nature being what it is, service stations typically react to a spike in oil prices by pushing prices higher, even before they replace their inventories.

... and [again] human nature being what it is, unless other stations bring their prices down, he's going to be very reluctant to bring down his.

So... just be patient.

reply to post by Dermo


I can imagine this has been all over ATS and other sites. We pay $10 for a gallon in the UK. It's just one of those things. It's expensive relative to them and their money, as ours is to us.