posted on July 7, 2001 11:07:57 AM
I just paid $1.17 to fill up with unleaded. If you are paying more than $1.20 then your local suppliers are gouging you.
posted on July 7, 2001 11:13:31 AM
KatyD - You asked if I believe that "drivel". I don't believe it's drivel, the sources I read come from:
The US Dept of Energy
CNN.com
DowJones.Com
Encyclopedia Britannica
Wall Street Journal
Organization of Petroleum Exporting Countries
The Department of Transportation
The Energy Info. Administration (EIA)
and they all pretty much say the same thing.
Last fall, California Attorney General Bill Lockyear investigated accusations of price-fixing among CAs oil poducers. He didn't find any. But his report cited three major factors for the high gas prices. 1)Lack of competition, 2)the state's requirement for cleaner-burning gas, 3) taxes. In other reports they state CA has too few refiners, also fewer places to buy gas. The # of gas stations in CA has gone down by 14% in the last decade.
Also, in March 2000 Congress passed a bill ordering the Clinton administration to study whether OPEC was fixing oil prices. The reports to the US EIA and the Congressional Research Service all pointed mainly to market forces in the US as the culprit behind the high prices: inadequate refining capacity, pipeline problems, low inventories and difficulities in producing reformulated gas with ethanol (RFG).
A Federal Trade Commission probe completed in 2-01 also found no collusion on the part of the oil companies.
So....what I'm saying is that we had very high gas prices under Clinton and we've had/have them under Bush. But many here imply it's all President Bush paying back his supporters. So does that mean Clinton was also paying them when prices were high last summer? I don't think so.....and I took jlpiece's post to be saying that.
posted on July 7, 2001 11:34:10 AM
Hi thermionic - On gas retailers ..
Do I understand correctly that you own your own gas station? Not clear on that, sorry.
I appreciate you sharing, but ask that you please understand I was saying that half tongue-in-cheek. As around here President Bush is guilty of everything, and these high gas prices are all his fault. The statics from www.energy.ca.gov show that in 1997 dealer margins were .09/gal, in 1998 they were .10 and in 1999 .09, in 2000 .08 and so far in 2001 it looks like they're running right about .04, so I can certainly see what you mean.
What I was trying to point out is that in some areas gas prices are actually going down. From what I've read it seems the areas that are enjoying decreases in gas prices were the one's that experienced the highest increases last summer. Obviously, as some share that's not happening in their areas.
According to the EIA, it showed:
1999 Average retail price was $1.22/gal. 14% of that was distribution & marketing costs & profits. 13% was refining costs & profits, 36% was federal & state taxes, and 37% was the cost of crude oil.
Then in 2000, average gas price = $1.48 and 12% was D & M costs and profits, 14% was refining costs & profits, 28% was fed & state taxes and 46% was the cost of crude oil.
posted on July 7, 2001 11:38:07 AM
krs - What does my paper say? Well, it didn't address that specific issue. BUT according to the US Dept. of Transportation: "The price on the pump reflects local market conditions and factors, such as the desirability of the location and the marketing strategy of the owner".
