Gas prices

[Top Dawg]

I don't no feel one bit bad for oil companies. They have been raping the consumer long enough. I will take a few months of low fuel prices. We all know it's going back up.

[papap]

Originally Posted by Top Dawg

I don't no feel one bit bad for oil companies. They have been raping the consumer long enough. I will take a few months of low fuel prices. We all know it's going back up.

So if oil companies are raping you. How about WalMart and every other company.

[PUREBAY2200]

Originally Posted by Top Dawg

I don't no feel one bit bad for oil companies. They have been raping the consumer long enough. I will take a few months of low fuel prices. We all know it's going back up.

Agreed!!

[TexasDux]

Originally Posted by Top Dawg

I don't no feel one bit bad for oil companies. They have been raping the consumer long enough. I will take a few months of low fuel prices. We all know it's going back up.

The federal government and state tax makes more per gallon than the production companies per gallon. Blame the government for the .40 per gallon tax.

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[marty f]

Originally Posted by TexasDux

The federal government and state tax makes more per gallon than the production companies per gallon. Blame the government for the .40 per gallon tax.

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agreed!

I have a buddy that owns a gas station, he makes 5 cents on each gallon, so for every $20 you spend in fuel he makes 1$, to run the business, keep the pumps on, lights and employees. So when I fill up my truck (40 gal) he only makes 2$ off me. When I fill up my 24yr old civic he makes .65 cents (I don't let it get below 1/2 on that car)

The distributor is about the same margin. But the state and feds take as much as 40 cents per gallon.

[specktator]

Originally Posted by marty f

agreed!

I have a buddy that owns a gas station, he makes 5 cents on each gallon, so for every $20 you spend in fuel he makes 1$, to run the business, keep the pumps on, lights and employees. So when I fill up my truck (40 gal) he only makes 2$ off me. When I fill up my 24yr old civic he makes .65 cents (I don't let it get below 1/2 on that car)

The distributor is about the same margin. But the state and feds take as much as 40 cents per gallon.

I am a fuel distributor and I can promise you your buddy is making more than $.05 a gallon. Especially right now with these crazy prices. Unless he owns a Race Trac or Tobacco Plus or something similar. Which they are making more than $.05 a gallon as well. Margins for distributors are very minimal though.

Rack Price on Unleaded today is $1.297 +
.384(taxes) +.003 (fees)=$1.684

The distributor probably makes $.08-.10 a gallon off him so he's getting it for $1.78-$1.80/gallon.

But if he's only adding $.05 to it, he must be moving a whole lot of fuel or getting screwed by his distributor. Tell him to call me!!

[marty f]

Originally Posted by specktator

I am a fuel distributor and I can promise you your buddy is making more than $.05 a gallon. Especially right now with these crazy prices. Unless he owns a Race Trac or Tobacco Plus or something similar. Which they are making more than $.05 a gallon as well. Margins for distributors are very minimal though.

Rack Price on Unleaded today is $1.297 +
.384(taxes) +.003 (fees)=$1.684

The distributor probably makes $.08-.10 a gallon off him so he's getting it for $1.78-$1.80/gallon.

But if he's only adding $.05 to it, he must be moving a whole lot of fuel or getting screwed by his distributor. Tell him to call me!!

This is in AR, as well a few yrs ago when fuel was ALOT more, so maybe not TODAY, he said his biggest competitor was walmart in the little town hes in, and he does what he can to be competitive. Ron has no reason to feed me a line, I believe him. If I can I do not buy fuel from walmart

[specktator]

Originally Posted by marty f

This is in AR, as well a few yrs ago when fuel was ALOT more, so maybe not TODAY, he said his biggest competitor was walmart in the little town hes in, and he does what he can to be competitive. If I can I do not buy fuel from walmart

Yeh if he's competing against Wal Mart, then he probably is only marking it up $.05/gallon. Wal Mart at times will sell it cheaper than I can buy it for. Idiots.

[specknation]

Originally Posted by specktator

Yeh if he's competing against Wal Mart, then he probably is only marking it up $.05/gallon. Wal Mart at times will sell it cheaper than I can buy it for. Idiots.

If it is not a rural type gas station everyone is competing with discount gas stations such as racetracs, kangaroos there are everywhere no choice you have to price match.

[specknation]

Originally Posted by specktator

I am a fuel distributor and I can promise you your buddy is making more than $.05 a gallon. Especially right now with these crazy prices. Unless he owns a Race Trac or Tobacco Plus or something similar. Which they are making more than $.05 a gallon as well. Margins for distributors are very minimal though.

Rack Price on Unleaded today is $1.297 +
.384(taxes) +.003 (fees)=$1.684

The distributor probably makes $.08-.10 a gallon off him so he's getting it for $1.78-$1.80/gallon.

But if he's only adding $.05 to it, he must be moving a whole lot of fuel or getting screwed by his distributor. Tell him to call me!!

I have interest in a gas station here locally in the Hammond area, and .04 to .06 is the average profit on a gallon of gas. It's rare to make any more than that, and if you figure keeping gas pump equipment pumps, credit card readers, etc... that figure is more like .03 per gallon, its just a reason to get people in to buy other things.

[specktator]

Originally Posted by specknation

I have interest in a gas station here locally in the Hammond area, and .04 to .06 is the average profit on a gallon of gas. It's rare to make any more than that, and if you figure keeping gas pump equipment pumps, credit card readers, etc... that figure is more like .03 per gallon, its just a reason to get people in to buy other things.

Well your distributor must be marking you up $.20+ per gallon if you are only able to mark your fuel up less than $.05 per gallon in order to be competitive. Are you able to see what rack price(before taxes and fees) is on the fuel you are getting? What are you selling unleaded for today?

[specknation]

Originally Posted by specktator

Well your distributor must be marking you up $.20+ per gallon if you are only able to mark your fuel up less than $.05 per gallon in order to be competitive. Are you able to see what rack price(before taxes and fees) is on the fuel you are getting? What are you selling unleaded for today?

Of course I see the price before taxes and fees, I am assuming you are carrying off brand petro (independent refinery petro). I am with a major brand of gas, and the distributor is not making .20 cent per gallon on me. I have many friends in the business both ends dist. and retail, and retailers making .05 a gallon is average that has been the case for many many years. You can make higher margins with a big dip or big highs in the prices, but when you do this everyday 24/7 365 you figure averages not extremes.