Basis for Gasoline prices

[peterboro31]

Does anyone know how the, at the pump, gasoline price is arrived at? It sure as heck is not based on the rise and fall of crude oil.

Any opinions or facts would be appreciated.

[Sustainable PF]

A bunch of rich white guys in North America talk to a but of rich Arab and Russian guys aboard and they set the market.

My absolutely uneducated gut feel guess.

[sags]

Come on people.................

Gas prices just "happen" to coincide with long weekends and paydays.......

[LBCfan]

As much as they think you will pay.

[carverman]

Does anyone know how the, at the pump, gasoline price is arrived at? It sure as heck is not based on the rise and fall of crude oil.

Any opinions or facts would be appreciated.

in Canada, apparently, gas prices are influence by "reduced refinery capacity", growing seasonal demand, and "lack of competition".
Have you ever noticed that gas stations all change their prices at the same time? Obviously collusion and maybe a secret decision amongst themselves,
not to compete with each other.

Here's more..check out the gas "prices" on signs in the pictures..
http://mississauga-gasoline-prices.m...auga4sale.com/

[Rico]

When I was in my late teen years (circa 1990), my friend's dad ran a gas station. My friend forgot to change the sign one night and had a 2 cent difference from other stations (it was a small independent station). The next morning, the owner of a local Esso phoned and asked if he was trying to start a gas war. He basically told him if he didn't change his sign to X price immediately, the Esso would lower their price so low that nobody would come to my friend's Dad's station and they'd be out of business in no time.

My friend changed the sign right away but he never forgot that phone call.

[carverman]

owner of a local Esso phoned and asked if he was trying to start a gas war. He basically told him if he didn't change his sign to X price immediately, the Esso would lower their price so low that nobody would come to my friend's Dad's station and they'd be out of business in no time.

Mafia style tactics? In Ontario, there are only less than a half dozen
refineries..most centered around metro areas like the GTA, and close to
the trans canada pipeline. So in most cases, the gas stations get their
product from 4 specific refineries, two owned by Imperial Esso,
one each by Suncor and Shell.

from online sources:
Ontario's basic problem is a lack of refining capacity, partly a result of the closing of an obsolete Petro-Canada refinery west of Toronto in 2005, she said.
There have been other recent "glitches", however.
<end>

Picture a place in space and time, where the big oil realizes the lack
of refining capacity to satisfy demand, but because of huge cost of
modernization or even building a new refinery to satisfy demand..
says to itself..."Hell!.. why invest in new capacity to satisfy demand?..
that could lower prices!. Do we want to lower prices? No!

We want to continue raising prices, blame it on world oil prices..<CHUCKLE>
and make obscene profits off the backs of the poor working stiffs, who have no choice when buying gasoline or diesel.

Now, lets just send our "goons" out the individual gas stations and "convince"
them NOT to compete with each other..if they want to stay in business...
that is.

If they don't comply..we will cut them off from our delivery schedule, they
will run out of gas and then..either go out of business..or come around to
bow to our demands."
.................................................. .....

Mr McGinty, premier of Ontario: " Do what you need to do "Big Oil", the
HST and the provincial excise tax will bring in billions of extra revenue,
tax dollars from the working stiffs, to pay down the Ontario deficit..so you have "carte blanche" to do as you please...oh by the way..here's a tax reduction "bone" for your efforts..and try not too squeeze them to hard
,chuckle> when you have your hands where... they don't belong!"

"We win, you win...and the Ontario drivers will just have to suck it in"

[carverman]

Overheard on the local radio this morning... Mr. McGinty, Premier of Ontario,
when approached on lowering gasoline taxes on the skyrocketing cost of gasoline was overheard to say...
"Well what's the point of us lowering taxes on gasoline?...Big Oil will just raise the prices to make up for any tax reduction we provide to the consumer."

FLY ON THE WALL, in a corporate boardroom of BIG OIL in Houston.
Sam Houston:
CEO of "Big Oil"...puffing on a big cigar, renumeration: $2.8 million in salary,
$1.3 million in bonuses, ( IF he continues to make "Big Oil" very profitable),
100 million in stock options, corporate Maybach (Germany luxury car),
corporate Rolls Royce, Corporate Lear jet, Corporate $500 million home in Houston Texas,
$300 million retreat in the Bahamas..etc etc.

sez:

"Tony...what's this memo from Dalton (McGinty) asking about a possible reduction
in the price of gasoline to help the people there?

(Heywart): " dunno Chief...I guess he's asking for some kind of reduction
in the cost of gasoline for Ontario, so he doesn't have to drop the taxes
on gasoline...maybe?

CEO Sam: Don't we have a couple of refineries in Southern Ontario?

Heywart: Yes, we do Chief, but we've had to cut production to maintain
higher profit margins for ourselves and our distributors. If the cost
of fuel gets cut by the province, we'll just have to raise our wholesale
price to maintain the current level, so we can continue raising prices
over the next few months.

CEO Sam: "So I guess, there is nothing we can do for them. What's our
projected target for gasoline prices for this year, Tony? "

Heywart: pointing to a dartboard on the wall..." I dunno Chief..lets
throw a dart and try to aim at the bullseye..if we hit it..we will be raising
prices to $2.50 a litre.... gradually... of course."

(then pointing to a second dart board with explanations to justify price increases)

of course, we will put together press releases to blame it all on world shortages, lack of refinery capacity, middle eastern wars, oil futures, high provincial and federal taxes, high consumption by the Chinese, lack of drilling resources, new regulations for drilling, higher fuel delivery, refinery upgrades..and anything else that we can get them to swallow."

CEO Sam: "Good man Tony! I guess you will looking for something "extra"
in your Christmas stocking this year?"

Tony (CFO of Big Oil)".."Thanks Chief!..pleasure to work with you!"

[HaroldCrump]

That's hilarious, Caverman!

Dalton McGuinty sure has the gall to talk about gas prices.
The direction of gas prices was very well know last summer when he decided to slam the HST down our throats.
Gasoline prices used to be PST exempt, but they are not HST exempt.
This is another of those "silent" taxes.
The provincial govt. is raking in a handsome profit off the increased gas prices without having to lift a finger.

And since most other retail prices are affected by gas prices, esp. food, everything gets more expensive and thus means even more revenue for the provincial govt.

Not the mention the 10c. or so provincial gas tax that they continue to take in as well.
All in all, gasoline is a nice cash cow for the provincial govt.

They are all crying crocodile tears and making sympathetic noises, but have zip interest in doing anything about it.

[Sustainable PF]

@Carverman - FUNNY! Got a kick outta that.

Now which party should we elect to make sure this big business gets more corporate tax cuts. Bring em on! Er, we did. Give em a cut anyhow, they smoke fine stogies.