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View Diary: Gas Prices jumped $0.42 OVERNIGHT (41 comments)

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  •  If you really want an answer (12+ / 0-)

    it's kind of complicated, but as I understand it, prices at the pump are keyed not to what they paid for the gas stored in the underground storage tanks under the pump, but what they are going to have to pay to replace that -- i.e., the upcoming prices.  

    And since gasoline is refined from crude oil, that means it's tied to the crude futures market.  When that goes up, gasoline prices are going to go up as well.

    There are some of things that go into the price of gasoline, and a lot of factors that influence NYMEX crude futures prices, but you can generally see a rough correlation between NYMEX crude futures and the price of gasoline.

    •  That PEMEX building was bombed... (3+ / 0-)
      Recommended by:
      mookins, Bob Love, glorificus

      I think it was headquarters of Petroleos Mexicanos, the Mexican national oil company.  Did that cause a big jump in the price of crude oil in North America?

      We're all pretty strange one way or another; some of us just hide it better. "Normal" is a dryer setting.

      by david78209 on Fri Feb 01, 2013 at 05:13:30 PM PST

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    •  Yahbut (3+ / 0-)
      Recommended by:
      elwior, glorificus, Lujane

      What you say is true, and crude prices are rising, but have not spiked anywhere close to the increase in gas prices here. To jump on a similarly sound but unresearched opinion, I would guess that it has to do with California's specialized market, and supply and demand.

      Prices in Austin are up a few pennies over last week.

      Disclaimer: If the above comment can possibly be construed as snark, it probably is.

      by grubber on Fri Feb 01, 2013 at 05:15:37 PM PST

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      •  California is generally going to be (4+ / 0-)
        Recommended by:
        mookins, VClib, glorificus, Lujane

        more expensive because California has unique fuel blend requirements, which means only  limited number of refineries can supply gasoline to California.  

        If one or two are on turnaround, for example, that can even affect prices -- again, that kind of thing affects California more because of the limited sources for its special required blends.  

      •  30 cent jump in Lafayette, IN (6+ / 0-)

        The price jumped 30 cents in Lafayette, IN.  It was odd driving past several gas stations that had the exact same price for Regular:  3.749 cents/gallon.

        "Politics should be the part-time profession of every citizen who would protect the rights and privileges of free people and who would preserve what is good and fruitful in our national heritage." -- Lucille Ball

        by Yamaneko2 on Fri Feb 01, 2013 at 06:17:04 PM PST

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      •  Crude and gas are different (2+ / 0-)
        Recommended by:
        grubber, soros

        For example, let's say some big oil-to-gasoline refinery in Louisiana explodes because of a hurricane.

        Gas prices rise, but crude prices fall.

        They are just different products and it's hard to infer anything about one from the other.

        (-5.50,-6.67): Left Libertarian
        Leadership doesn't mean taking a straw poll and then just throwing up your hands. -Jyrinx

        by Sparhawk on Fri Feb 01, 2013 at 08:31:04 PM PST

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        •  Yes and no (0+ / 0-)

          Long term, gasoline prices follow the price of the raw material, but there are many additional factors that can uncouple the short term trends.

          Disclaimer: If the above comment can possibly be construed as snark, it probably is.

          by grubber on Fri Feb 01, 2013 at 08:43:27 PM PST

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    •  Not when I managed a station. (4+ / 0-)
      Recommended by:
      Lujane, geebeebee, cynndara, Kickemout

      Every morning on the way to work I had a list of 10 competitive stations in the area of our store to visit, and record their prices.  When I got to our station, I recorded the survey pricing, and then adjusted our prices.  

      The particular store I worked for's policy was "1cent per gallon less than the competition".

      Pricing had nothing to do with the price it cost to buy the gas and nothing to do with the price to replace it.

      It's still like that at a lot of stations.  The price of the product is just like it is on most retail products:  Whatever the customer will bear.

      *The administration has done virtually nothing designed to reward its partisans. - Kos 8/31/10*

      by Rick Aucoin on Fri Feb 01, 2013 at 08:17:50 PM PST

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