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Broome-
I am not saying it is the proper way for the oil companies and retailers to do business, but the pricing of the fuel is based on the futures market played out day by day in New York and Chicago and the price that is set should be what the retailer and consumer should be charged one month from the day the price is set. If his (the retailer) normal profit is .05/gallon and he paid $2.00 for the gas before Katrina hit, he assumes that his next delivery might be at $2.50 therefore he marks up the price we pay according to how much the futures market went up on a particular day. In the mean time if he is selling fuel that cost him $2.00/gallon and selling it for $2.85 he is making an extra .80/gallon profit and hoping that his next delivery will only cost the $2.50 and will still make the extra .35/gallon. A very short explantaion of all of the above....we are getting ripped off to no end. Today's gasoline futures were down .2253/gallon with the wholesale price of gasoline at $2.1837/gallon. Will you see a that much reduction at the pumps tomorrow, I think not. Will you see it a month from now, I doubt it.
After I made the post this morning about our local incident, I went to town and this store is selling gasoline and diesel .25/gallon cheaper than the station across the street and down the road. He is trying to win back community sentiment. I will do my best to avoid buying fuel from him and with his six stores, this could amount to a hefty $120,000 fine from the Texas Attorney General, he deserves it.
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