Premium gas hits $5.02 a gallon in Toronto

That's American dollars and gallon prices.
Price per litre is $1.49 Can..
-Rich


"Bittorrents are REFUNDS for all the BAD movie products Hollywood
never gave us refunds for in the past"

On Fri, 02 Sep 2005 19:56:38 -0400, RichA > wrote:

>That's American dollars and gallon prices.
>Price per litre is $1.49 Can..
>-Rich

Oops! Forgot to mention; The world price for crude
is what it was 2 weeks ago, about $69/barrel while
gas then was $3.98/gal. I wonder where that extra
dollar came from??


"Bittorrents are REFUNDS for all the BAD movie products Hollywood
never gave us refunds for in the past"

I think it's closer to $4.69/USG in $US. ((1.49/l x 3.78l/USG) / 1.2) or if
we still sold gas by the gallon (imperial) it would be $6.76 CDN. Now that's
the scary part.

--
Richard

'94 GT 'vert
Under Drive Pulleys
Transgo HD2 Reprogramming Kit
High Stall Torque Converter
4:10 Gears
Gripp Sub Frame Connectors (welded)
FRPP Aluminum Drive shaft
FRPP M5400-A Suspension
Laser Red

"RichA" > wrote in message
...
> On Fri, 02 Sep 2005 19:56:38 -0400, RichA > wrote:
>
> >That's American dollars and gallon prices.
> >Price per litre is $1.49 Can..
> >-Rich
>
> Oops! Forgot to mention; The world price for crude
> is what it was 2 weeks ago, about $69/barrel while
> gas then was $3.98/gal. I wonder where that extra
> dollar came from??
>
>
> "Bittorrents are REFUNDS for all the BAD movie products Hollywood
> never gave us refunds for in the past"

RichA wrote:
> On Fri, 02 Sep 2005 19:56:38 -0400, RichA > wrote:
>
>
>>That's American dollars and gallon prices.
>>Price per litre is $1.49 Can..
>>-Rich
>
>
> Oops! Forgot to mention; The world price for crude
> is what it was 2 weeks ago, about $69/barrel while
> gas then was $3.98/gal. I wonder where that extra
> dollar came from??


The issue is twofold...You've got to first get that oil to the refinery.
My understanding is that a number of refineries are still shut down.
Incidentally, the US refining capacity was already operating at near
100%. You lose 1 or 2 refineries and it can cause pretty large price
spikes and supply disruptions. You've also got to get the gasoline
after it's refined to the markets that need it. The shipping terminals,
roads, and some pipelines were negatively impacted by the storm. Have
gasoline sitting in vast tanks at the refinery isn't going to help the
supply on the street so it won't help prices until it can be
distributed. My understanding is that approximately 10% of US refining
capacity was affected. That's going to cause a much larger than 10%
baloon in prices until the supply and refining system is back online and
can make up the difference. For now, some oil companies are importing
refined gas which is substantially more expensive than importing crude
and refining it locally.

Cheers,

On Sat, 03 Sep 2005 07:25:09 -0400, Ritz > wrote:

>RichA wrote:
>> On Fri, 02 Sep 2005 19:56:38 -0400, RichA > wrote:
>>
>>
>>>That's American dollars and gallon prices.
>>>Price per litre is $1.49 Can..
>>>-Rich
>>
>>
>> Oops! Forgot to mention; The world price for crude
>> is what it was 2 weeks ago, about $69/barrel while
>> gas then was $3.98/gal. I wonder where that extra
>> dollar came from??
>
>
>The issue is twofold...You've got to first get that oil to the refinery.
> My understanding is that a number of refineries are still shut down.
>Incidentally, the US refining capacity was already operating at near
>100%. You lose 1 or 2 refineries and it can cause pretty large price
>spikes and supply disruptions. You've also got to get the gasoline
>after it's refined to the markets that need it. The shipping terminals,
>roads, and some pipelines were negatively impacted by the storm. Have
>gasoline sitting in vast tanks at the refinery isn't going to help the
>supply on the street so it won't help prices until it can be
>distributed. My understanding is that approximately 10% of US refining
>capacity was affected. That's going to cause a much larger than 10%
>baloon in prices until the supply and refining system is back online and
>can make up the difference. For now, some oil companies are importing
>refined gas which is substantially more expensive than importing crude
>and refining it locally.
>
>Cheers,

We all know how increased scarcity drives up prices, but the companies
have already paid a certain price for what they have "in the pipe" or
in storage and they are making a huge profit on these increases.
They used to tell us that when crude prices fell, it took 2-3 months
for those to "trickle down" to the pumps. So why do gas prices rise a
DAY after crude prices do?'
-Rich

Rich wrote:
> On Sat, 03 Sep 2005 07:25:09 -0400, Ritz > wrote:
>
>> We all know how increased scarcity drives up prices, but the companies
> have already paid a certain price for what they have "in the pipe" or
> in storage and they are making a huge profit on these increases.
> They used to tell us that when crude prices fell, it took 2-3 months
> for those to "trickle down" to the pumps. So why do gas prices rise a
> DAY after crude prices do?'


Why don't you write a letter to the CEO of each major refiner and ask
them? I don't set policy at refineries or at the major oil companies.
I'm just telling you how it is. Let me know if anyone responds to your
letters.

Cheers,

Rich > wrote

>
> We all know how increased scarcity drives up prices, but the companies
> have already paid a certain price for what they have "in the pipe" or
> in storage and they are making a huge profit on these increases.
> They used to tell us that when crude prices fell, it took 2-3 months
> for those to "trickle down" to the pumps. So why do gas prices rise a
> DAY after crude prices do?'
> -Rich

The price at the pump relates directly to the cost of the replacement fuel.
NOT the cost of what's IN the underground tanks. Which in turn reflects the
refinery price to the Distributor for the next deliveries... usually a day
or so lag/lead there

That is why it goes up immediately and isnt related to the presence of the
tanker truck.

As far as the decline, do you really pay attention? Where I live,
Speedway/Marathon sells the bulk of the gas... And they refine their own!

So I see the decline work the same. When (WTI) crude goes down, so does
the gas price... there are exceptions but that's a matter for local
competition pressures.

Backyard Mechanic wrote:
> Rich > wrote
>
>
>>We all know how increased scarcity drives up prices, but the companies
>>have already paid a certain price for what they have "in the pipe" or
>>in storage and they are making a huge profit on these increases.
>>They used to tell us that when crude prices fell, it took 2-3 months
>>for those to "trickle down" to the pumps. So why do gas prices rise a
>>DAY after crude prices do?'
>>-Rich
>
>
> The price at the pump relates directly to the cost of the replacement fuel.
> NOT the cost of what's IN the underground tanks. Which in turn reflects the
> refinery price to the Distributor for the next deliveries... usually a day
> or so lag/lead there


People who want to speculate on fuel prices or who want to take
advantage of short-term supply shocks might behave that way, but someone
who just wants to earn their honest living bases their prices on their
actual cost, not what they THINK prices will be tomorrow.

If you have the urge to speculate on fuel prices, you should hang up
your dirty overalls and buy/sell gas and oil futures. Since you're such
an expert on the subject and on commodity prices, you should have no
trouble at all making a handsome profit for yourself. Do let me know
how that works out for ya...

On Mon, 05 Sep 2005 15:05:15 GMT, Backyard Mechanic
> wrote:

>Rich > wrote
>
>>
>> We all know how increased scarcity drives up prices, but the companies
>> have already paid a certain price for what they have "in the pipe" or
>> in storage and they are making a huge profit on these increases.
>> They used to tell us that when crude prices fell, it took 2-3 months
>> for those to "trickle down" to the pumps. So why do gas prices rise a
>> DAY after crude prices do?'
>> -Rich
>
>The price at the pump relates directly to the cost of the replacement fuel.
>NOT the cost of what's IN the underground tanks. Which in turn reflects the
>refinery price to the Distributor for the next deliveries... usually a day
>or so lag/lead there
>
>That is why it goes up immediately and isnt related to the presence of the
>tanker truck.
>
>As far as the decline, do you really pay attention? Where I live,
>Speedway/Marathon sells the bulk of the gas... And they refine their own!
>
>So I see the decline work the same. When (WTI) crude goes down, so does
>the gas price... there are exceptions but that's a matter for local
>competition pressures.

You have to be able to separate local, brief "price wars" from the
normal price of fuel. They are not related.
-Rich

I'm just telling you how it's done.

If you opened a widget store and you already had a stock of widgets.. you
would sell them based on what you paid for them.. but you are about to run
out of stock so you order more, only to find the wholesale price has
increased... now you MIGHT wait until you get that stock in to raise the
price.. but sooner or later, you're going to realize it really doesnt
matter.

As soon as you know YOUR cost for shelf replacement.. you will just mark
them accordingly.

And you sure arent going to sell your old stock at the old price with the
new stock higher!