gas in CA, RE: Fwd: Gas Out April 30, 1999

["Avi Meron" <avi@cosmoslink.net>]

The situation is much worse in Southern CA,
The oil companies own the vast majority of the retail gas station (lease
them out) and TOTALLY control the price on the retail level (exactly the
same as our Southern CA grocery chains). The price is entirely dictated by
the oil companies with absolutely no regard to demand or supply!
There is absolutely no brand of specific gas when you buy it in a station,
you can buy U76 gas at a Chevron or Arco gas at a Shell, and in other words
we are getting screwed any way you look at it............
The gas price in Southern CA does not vary in cost, you can drive for 40-59
miles (which means crossing 10 cities boundaries) and the cost per gallon
vary by max of 2 cents (if that).
 We are under total chock hold of the oil companies with no way out, the
proposed merger acquisition of Arco by BP/Amoco is going to further squeeze
our options (Arco in Southern CA is a lower price leader, only by 2-3 cents
though).
Maybe we will be better off giving the money to the government (as the
European) instead of giving it to the oil companies, big question isn't it?
Avi



-----Original Message-----
From:	owner-quattro@coimbra.ans.net [mailto:owner-quattro@coimbra.ans.net]
On Behalf Of Virtual Bob
Sent:	Friday, April 02, 1999 12:41 PM
To:	Audi q-list
Subject:	Re: Fwd:  Gas Out April 30, 1999

>> No, it soulds like they are gouging the customer.  In no other
>> business will retail prices rise ahead of wholesale prices because of a

>Well, not quite 'none'. Some commodity products and their sales channels
>lend themselves to 'preemptive' price adjustment, others don't... This is
>Capitalism folks, for better or worse:  if the market will bear that
>price, the market will bear that price.  However, and before you feel
>flamed - Yes it is gouging.  Just a downside of unregulated 'free
>markets'.

I recall few years ago there was a news report (either NBC or ABC) about
why price-per-barrel drops, we consumers don't feel the immediate savings.
The industry explains something like it takes at least 6 months or
something for the savings to be passed on because of the latency (sales ->
refinement -> delivery). I'm freaking surprised (not) when the
price-per-barrel goes up, consumers can experience the price increase
overnight.

Exxon hasn't paid a cent on Valdeez' accidents' clean-up.

Hmmm... Maybe I should invest in oil co. stocks.

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