WTF! Gas prices again.
08-Aug-2006, 07:14 PM
#142
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Join Date: Jun 2005
Location: North York
Posts: 1,148
Now that the BP pipeline from Alaska is out of order the price of oil is at an all-time high, and the gas prices will reflect that really quickly.
Which is pretty ridiculous if you think about it because if the price of oil goes up today, it really shouldn't effect prices until that same oil is finished being processed into gas and is being sold months later.
The gas being sold today would ideally reflect the price of oil when the company purchased/extracted the oil, because they don't incur any additional costs based on market value after acquiring the oil.
But atleast it works in reverse too, so when it goes down you get the same quick response irreflective of the input costs for the oil.
Which is pretty ridiculous if you think about it because if the price of oil goes up today, it really shouldn't effect prices until that same oil is finished being processed into gas and is being sold months later.
The gas being sold today would ideally reflect the price of oil when the company purchased/extracted the oil, because they don't incur any additional costs based on market value after acquiring the oil.
But atleast it works in reverse too, so when it goes down you get the same quick response irreflective of the input costs for the oil.
08-Aug-2006, 10:19 PM
#144
Registered User
Join Date: May 2005
Posts: 36
Originally posted by mugenpowered
Now that the BP pipeline from Alaska is out of order the price of oil is at an all-time high, and the gas prices will reflect that really quickly.
Which is pretty ridiculous if you think about it because if the price of oil goes up today, it really shouldn't effect prices until that same oil is finished being processed into gas and is being sold months later.
The gas being sold today would ideally reflect the price of oil when the company purchased/extracted the oil, because they don't incur any additional costs based on market value after acquiring the oil.
But atleast it works in reverse too, so when it goes down you get the same quick response irreflective of the input costs for the oil.
Now that the BP pipeline from Alaska is out of order the price of oil is at an all-time high, and the gas prices will reflect that really quickly.
Which is pretty ridiculous if you think about it because if the price of oil goes up today, it really shouldn't effect prices until that same oil is finished being processed into gas and is being sold months later.
The gas being sold today would ideally reflect the price of oil when the company purchased/extracted the oil, because they don't incur any additional costs based on market value after acquiring the oil.
But atleast it works in reverse too, so when it goes down you get the same quick response irreflective of the input costs for the oil.
09-Aug-2006, 12:13 AM
#146
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Join Date: Jun 2005
Location: North York
Posts: 1,148
Originally posted by sleepyhatch
Except for the fact that oil is a commodity and as such its value can fluctuate at any time just like the value of anything that has a limited supply and huge demand, kind of like how currency fluctuates daily when it was printed many years ago.
Except for the fact that oil is a commodity and as such its value can fluctuate at any time just like the value of anything that has a limited supply and huge demand, kind of like how currency fluctuates daily when it was printed many years ago.
Obviously in the real world companies can charge what they want for gas, and people will pay it, but I was just saying that it just seems weird to me that the same gas can increase in price overnight even though no additional cost was incurred by the station for that gas.
09-Aug-2006, 10:44 PM
#147
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Join Date: May 2005
Posts: 36
Originally posted by mugenpowered
True that the value of oil can fluctuate at any time, but that wasn't what I as saying. I was just making the point that in a perfect world gasoline wouldn't fluctuate randomly because ideally it would be based on the cost of the oil used as an input at the beginning of the refinement process.
Obviously in the real world companies can charge what they want for gas, and people will pay it, but I was just saying that it just seems weird to me that the same gas can increase in price overnight even though no additional cost was incurred by the station for that gas.
True that the value of oil can fluctuate at any time, but that wasn't what I as saying. I was just making the point that in a perfect world gasoline wouldn't fluctuate randomly because ideally it would be based on the cost of the oil used as an input at the beginning of the refinement process.
Obviously in the real world companies can charge what they want for gas, and people will pay it, but I was just saying that it just seems weird to me that the same gas can increase in price overnight even though no additional cost was incurred by the station for that gas.
I'm all for government staying the hell out of business but its one industry that could use some regulation, its funny how gas in ottawa always seems cheaper there than Toronto whenever I travel there, I guess they like to keep the feds happy.
Aside from gas prices the biggest ripoff is insurance, the government mandates that everyone have insurance yet they do not regulate how much the companies can charge. That really chaps my ***!
10-Aug-2006, 03:41 AM
#150
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Join Date: Mar 2006
Location: burlington
Posts: 366
Re: WTF! Gas prices again.
Originally posted by DumbasSi
I've been off work for a few days and haven't really left the house. I go to get gas this morning and it's 101.9 at Petro for the cheap stuff. Did I miss something? Some dude blows himself up at Timmies and gas goes up? WTF!?!?!
I've been off work for a few days and haven't really left the house. I go to get gas this morning and it's 101.9 at Petro for the cheap stuff. Did I miss something? Some dude blows himself up at Timmies and gas goes up? WTF!?!?!
10-Aug-2006, 09:16 AM
#152
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Join Date: Dec 2004
Location: Scarbaria
Posts: 11,834
after all of this gas price talk i am yet to pay over 1.00/ litre for gas ... just suck it up and go for that 11pm cruise 
gas is always low at that time .. i dont get how ppl can justify waiting till like high noon when gas it at its dailly high to get gas .. yes i know its needed but as a daily driver these are things u should look into to maximize ur fuelage heh 
gas is always low at that time .. i dont get how ppl can justify waiting till like high noon when gas it at its dailly high to get gas .. yes i know its needed but as a daily driver these are things u should look into to maximize ur fuelage heh
10-Aug-2006, 09:42 AM
#154
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Join Date: Dec 2004
Location: Scarbaria
Posts: 11,834
Originally posted by Gallagher
I pay abuot $90 to fill up my truck, either its expensive, those are the things you must deal with when driving a truck
I pay abuot $90 to fill up my truck, either its expensive, those are the things you must deal with when driving a truck
love mah civcccc !
10-Aug-2006, 09:48 AM
#155
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Join Date: May 2004
Location: Somewhere out there...
Posts: 4,606
Originally posted by JoonyaSI
after all of this gas price talk i am yet to pay over 1.00/ litre for gas ... just suck it up and go for that 11pm cruise gas is always low at that time .. i dont get how ppl can justify waiting till like high noon when gas it at its dailly high to get gas .. yes i know its needed but as a daily driver these are things u should look into to maximize ur fuelage heh
after all of this gas price talk i am yet to pay over 1.00/ litre for gas ... just suck it up and go for that 11pm cruise
gas is always low at that time .. i dont get how ppl can justify waiting till like high noon when gas it at its dailly high to get gas .. yes i know its needed but as a daily driver these are things u should look into to maximize ur fuelage heh
I'm not changing my driving habits to save $2 on a tank....I'd rather pay the extra 20-30 a year...if I happen to fill up at night great, otherwise, meh...
on another not, oil stocks
10-Aug-2006, 09:59 AM
#157
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Join Date: Mar 2004
Posts: 1,730
the reason that gas prices flactuate concurrently with oil prices (and not follow after the oil has been refined) is due to the fact that companies are buying oil futures. If the price of oil goes up, then the companies need to raise enough money to cover the price they agreed to pay. It is not like they walk into an oil store, and pick up 3 million barrels right there.
10-Aug-2006, 11:12 AM
#159
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Join Date: Jan 2003
Location: on a race track
Posts: 17,846
Originally posted by mugenpowered
True that the value of oil can fluctuate at any time, but that wasn't what I as saying. I was just making the point that in a perfect world gasoline wouldn't fluctuate randomly because ideally it would be based on the cost of the oil used as an input at the beginning of the refinement process.
Obviously in the real world companies can charge what they want for gas, and people will pay it, but I was just saying that it just seems weird to me that the same gas can increase in price overnight even though no additional cost was incurred by the station for that gas.
True that the value of oil can fluctuate at any time, but that wasn't what I as saying. I was just making the point that in a perfect world gasoline wouldn't fluctuate randomly because ideally it would be based on the cost of the oil used as an input at the beginning of the refinement process.
Obviously in the real world companies can charge what they want for gas, and people will pay it, but I was just saying that it just seems weird to me that the same gas can increase in price overnight even though no additional cost was incurred by the station for that gas.
For example:
if I have 10 apples that I got off my Apple tree and the price of apples is currently 10 dollars an apple, if my apple tree represents 10% of the world Apple supple and I find out that there is disease that will cause it not to produce apples next year am I going to want to still sell my 10 Apples for 10 dollars? or am I going to want to sell for a higher price because future supply of apples is going to be deminished by the lackof production from 10% of the world apple supply (my tree) ... I'm going to want to get more for them.
future supply is reduced by the pipeline being out of service... so the current price goes up...
another example:
Huricane Whatamacallit is going to hit Toronto, Stores raise prices on Essential products because their east coast distribution network to get those good to toronto has been taken out, Future supply doesn't exist so current supply is everything they have.. demand is increased at the same time so increased prices can be sought. of course this is Price Gorging and is illegal buit it's the same concept.
if I get oil at 20 Dollars a barrel and find out in 1 week before I do anything with it that it's the last barrel of oil for the next decade, sure the barrels of oil that get produced int he next decade will be expensive but my one barrel thats all ready to go is worth a lot more.
