Posted by willie in mn on March 11, 2011 at 02:08:40 from (205.188.116.74):
In Reply to: Gas went down posted by iagary on March 10, 2011 at 18:23:39:
Pine County Mn, was 3.60/9 last Fri, Mon dropped a penny, Thur dropped another nickel to 3.54/9. Opinion- I don't have a dog in the fight except that I have to pay whatever the price happens to be. Please don't shoot the messenger, just forwarding information. No quarrel with the local station owners either. Not much profit margin on gas, makes his most profit on other stuff in the store while you are there, called convenience. Local stations have to pay when getting delivery, no credit plan with supplier. If his costs go up, he has to raise his selling price or go out of business. If he goes out of business, where do we buy our gas? Now good, bad, or otherwise, here we have state rules that the local station cannot sell at less than his cost. Eg: the numbers are wrong, but show the point. Station pays 3.39 for a load of gas, has to charge at least that much. His next load costs 3.45, he has to pay when delivered. If his next load costs 3.24, he still has some 3.45 gas in his tanks & has to charge at least that much until that many gallons is gone. Reason for the minimum price- many years ago high volume stations with deep pockets would cut price below cost to drive the small "Mom-Pop" stations out of competition, then bump the price way up. So state lawmakers passed a rule that prohibit selling below cost. Don't know if it actually worked as intended or not, but that's the way it is now. Willie P.S. cut my gas use a bit last couple months. Parting out my 20 year old, 5800# Belchfire V8 van, now driving 2500# V6.
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