Where are all the whining AGs now on gas?

[WildBill]

I will give you all the secret to gas prices. Its not really that secret, its just that this is completely ignored.

In times of normal gas market conditions, prices should generally be from 50 to 80 cents (depending on which area of the country you live in) above wholesale, which is the forward futures contract price you read about in the financial news. Its been below $2 for about a week now, running about $1.75 today after the latest inventories reports. This means national prices should be around $2.30, not the $2.80 or so they are.

The reason why the prices are high is that retailers are recouping what they lost when the prices went up to almost $2.50 back when the hurricanes were hitting. That is right, when the most noise was made by attorney generals and pundits about gouging, retailers were actually LOSING money selling you gas in most cases. They do it because when prices inevitably fall, they can just recoup the losses. When the market feels the recovery is sufficient, prices can come down. Expect to see 20 cent declines in prices within 10-20 days as long as there are no more looming hurricanes or setbacks in refinery stats.

I just can't believe so few people ever realize this. The time when people could complain is now and of course no one does because the prices are inching down. Complete lack of understanding in the marketplace, they cry foul and do their investigations at the wrong times. When they do them as prices skyrocket, they quickly go away once they realize the local filling station is losing 20 cents on every gallon they sell. With their tails between their legs, they say "sorry, no evidence can be found these scoundrels are ripping us off".

Just so you all know...

 

[Dawoofdaddy]

Most have been hoodwinked into believing gas at or near $2.50 is "good" news.

Same people kicked and fussed when gas went over $2.00

:lolBIG:

 

[docmercer--banned]

Dawf:

they have us all where they want it .... the ol "MF" (mind fuck) is in complete gear !!

 

[hellah10]

Most have been hoodwinked into believing gas at or near $2.50 is "good" news.

Same people kicked and fussed when gas went over $2.00

:lolBIG:

i filled at the "cheapest" place in Toledo this morning....$2.59 at the Sonoco by the High Level Bridge

urrrbody else is 2.60 and above - by my house its 2.67

 

[JinnRikki]

Bill when you say retailers were losing money I assume you meant it in the same sense as if you have a wheelbarrow heaped full of gold coins you will eventually lose a few on your way to the bank

 

[WildBill]

Bill when you say retailers were losing money I assume you meant it in the same sense as if you have a wheelbarrow heaped full of gold coins you will eventually lose a few on your way to the bank

No they really do lose money at times, but hope to make some up with the mini mart and then take profits in times like now. With gas at $1.75 and selling at around $2.80 I guarantee just about every retailer is recouping prior losses at this moment. If gas proves to hang on around this level, retail prices should be below $2.50. If the reports about reduced gas demand continue, we could see retail prices in the low $2.00 range. No guarantees, but cut back demand 3% and still have imports coming in these prices have plenty of room to go down more.