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oil down, prices up? Confused.

Discussion in 'General Industry Discussions' started by Carolina Cuts, May 30, 2008.

  1. Carolina Cuts

    Carolina Cuts LawnSite Bronze Member
    Messages: 1,152

    Crude Oil dropped over $4.00 a barrel yesterday...
    Gas station up the street raised their prices???

    Any educated ones care to explain this nonsense, because I'm at loss at this point...
  2. topsites

    topsites LawnSite Fanatic
    Messages: 21,653

    Maybe the gas station owner is speculating.
  3. Borsenik9

    Borsenik9 LawnSite Member
    from MI
    Messages: 50

    the "price per barrel" that you hear about is for futures. this price is what people are paying/ buying a barrel of crude for that may not even be pumped out of the ground until next year- it works similar to the stock market- so it has little effect on prices today:dizzy:
  4. Charles

    Charles Moderator Staff Member
    Messages: 8,822

    I made a thread on this subject where the government has been investigating price fixing. They just disclosed the existance of the investigation. This supposedly made the barrel price drop:

  5. DLCS

    DLCS LawnSite Platinum Member
    Messages: 4,386

    Right, but if the price of crude goes up, gas stations raise the price imdediately.:dizzy:
  6. All_Toro_4ME

    All_Toro_4ME LawnSite Bronze Member
    Messages: 1,578

    Yes they do. They definately do.
  7. Borsenik9

    Borsenik9 LawnSite Member
    from MI
    Messages: 50

    I agree they do, and they can, because people (uneducated ones) continue to think that the prices of the two are tied, and that therefore they should pay more. on a side note, gas is NOT too expensive- if it were, wouldn't we drastically change our lifestyle?
  8. ExcaliburLawnCare

    ExcaliburLawnCare LawnSite Member
    from MI
    Messages: 54

    IF I remember correctly, gas station managers only have a 5-10 cent discretion for proximity competition, whereas corporate actually sets the price for the day.
  9. Carolina Cuts

    Carolina Cuts LawnSite Bronze Member
    Messages: 1,152

    that's the BS i can't stand.....
    they're quick to raise it... slow to drop it....
  10. shovelracer

    shovelracer LawnSite Silver Member
    Messages: 2,008

    You are correct. Back in HS i worked at a station and the manager would get a call from the corp letting him know what to change it to and at what time. This is the case with franchise stations. Not sure if it works the same for private no name stations.

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