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View Diary: Profits soar as oil companies victimized again by high gas prices (111 comments)

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  •  I remember reading gas stations were making more (5+ / 0-)

    off bottled water then gas.  They are making a 3% margin on gas, and 30% on the water.  Now if they'd only sell the gas for 3% less, there'd be no problems anywhere right?

    •  Total cluelessness from people (1+ / 0-)
      Recommended by:

      Gasoline and oil are priced on (separate) supply/demand markets. If supply contracts 1%, the question is "what price does gas have to get to in order to destroy 1% of demand?", because that's what price it will get to, and that might be far more than 1%.

      There isn't some conspiracy here, there isn't some evil corporation sitting there counting its ill-gotten gains. It's nice to think that (and this diary plays right into that meme), but at the end of the day there is just not-much-oil and lots-of-people-who-want-oil (or, merely lots-of-people-who-think-oil-will-be-scarce-in-the-future).

      If people don't like it, find a way to use less.

      (-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 Thu Apr 28, 2011 at 09:25:06 AM PDT

      [ Parent ]

      •  maybe you missed the comments (0+ / 0-)

        by Exxon blaming dealers
        I guess I'm so clueless I don't understand how your comment times into what I posted.

        •  Re (1+ / 0-)
          Recommended by:

          You should link to the actual link, not to a blog post about a blog post about a blog post about it.

          From the link:

          The main component of the price at the pump is the cost of a barrel of crude oil. Another major component of the price of gas is state and federal taxes, which range from a high of 66 cents per gallon in California to a low of 26 cents per gallon in Alaska, according to January 2011 data. How are pump prices set at Exxon and Mobil stations? We don’t own 95 percent of them, and therefore we don’t set the price. Local stations are often owned by a businessman or businesswoman in your community, and they set their own prices based on local market conditions.

          The entire link is about two pages of various information and this snippet is the only reference to local dealers, and Exxon is absolutely correct about this fact. Do you disagree?

          (-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 Thu Apr 28, 2011 at 09:39:59 AM PDT

          [ Parent ]

          •  yes, I do (1+ / 0-)
            Recommended by:

            if typical margins at a gas station is 3%, how are local stations a major factor in the price of gas? sure, they could lose money, but I'm guessing you're not asking for them to do that.  Are stations gouging us? or is someone who just announced a 5 straight quarter of increasing profits.

            •  I think you and Exxon agree (0+ / 0-)

              They don't say stations are a major factor. I cannot understand how people read that and takeaway that Exxon is blaming station owners. Quite the contrary, they are responding to critics that say stations are a major factor and people that say stations are price gouging. Some people think Exxon is controlling the price at the pump and what Exxon is saying is that we don't control most the pumps. Apparently all it takes is one front pager to misread a quote and thousands will accept the misread without reading themselves.

              To us they seem like a big company but in the league of Oil and Gas companies they are a bit player. They don't have the power to influence the international oil markets.

              Isn't scarcity a good enough reason to explain the price of oil? If we waste time looking for a boogeyman on this issue it will only delay our transition to non-fossil fuels. The message needs to be yes, oil is expensive, dirty and running out, and that it will only get worse from here.

    •  They make even more on coffee (1+ / 0-)
      Recommended by:
      Matt Z

      and the best of all, on fountain drinks.  You know that big ass 44 oz Coke you just bought for $1.59?   It probably cost them around 30 cents or so . . .

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