Gasoline price blues weigh on dealers, too

[Truth]

StuckInMaryland wrote:

<quoted text>
The charge is not on the profit, the charge is on the total cost. If we use today's average price of around $3.65 for a gallon, he took in $29,200l. The charge card average of 2% comes to $584 of the total. That leaves him with $216 in profits.

Strong point......you are dead on. What a scam by the credit card companies. These owners are paying a 2% charge for amounts collected by the govt. If the govt tax is, say .20/gallon, they are paying .004/gallon in fees for money they don't even see. That works out to about .01 per every 250 gallons they sell.What a total scam

[PunkinDrublic]

Larry Jackson probably owns
Long Gate Mobil
4398 Montgomery Rd., Ellicott City, MD
It has a Subway and a Carwash, and is located in Ellicott City.

[Bababooey]

Truth wrote:

<quoted text>
Your answer is some....go with ones that don't. But, your logic makes no sense anyway. The credit isn't based on the store owners credit, it is based on the buyers credit. Why would a credit card gateway care about the credit of the store owner?

Because the machines themselves can be reprogrammed to simply collect YOUR information and bingo bango, a credit card cloning ring run out of Hajis very own 7-11. It is just as much a risk for them on both the consumer and the merchant side.

[Truth]

Bababooey wrote:

<quoted text>
Because the machines themselves can be reprogrammed to simply collect YOUR information and bingo bango, a credit card cloning ring run out of Hajis very own 7-11. It is just as much a risk for them on both the consumer and the merchant side.

BS, any vendor or merchant can do that anyway. Gathering credit card numbers is no difficult task and holding "reserves" isn't going to bring any peace of mind to anyone.

[Driver]

Attention Mmr. Chaundry and all gas station owner crybabies: can't take the heat of business, hey close up shop and get out of the kitchen.

You're the ones who imposed the plastic rule on us by denying motorists the ability to pay cash after pumping the gas since you're in on the gouging game.

So TOUGH luck buddy, I don't give a darn about your business. I care only about my wallet.

Want my business STOP the damn gouging then.

[Scott G]

flyingcow wrote:

It would be really helpful
if a newspaper
actually reported on
the actual costs of a gallon of gas--
e.g.,
a detailed story about the cost
of a gallon of gasoline--
who gets how much $$--
oil driller, pipeline, shipping,
refining, oil company profit,
delivery to gas station,
gas station profit, federal, state, local taxes, and so on.....

I have seen many articles with that breakdown over the last year. The information is out there, but I believe over 70% of cost is directly linked to the price of oil. Taxes do make up a good chunk of the remaining 30%. Don't have the time to look to look it up this morning, but you'd be surprised.

[Scott G]

Truth wrote:

"One of his Prince George's County stores fared a little better that day, selling 8,000 gallons and clearing about 10 cents a gallon, or $800, in gross profit. But even so, he said,$418 went for credit card fees."
How does this math work??? If credit card fees are 2% of the transaction, how does it work out in the above quote to be over 50%. I know some credit card companies have a minumum charge but still???.......

I think you misread the way it was written. I think what he meant to say was that the $800 was after all the fees. The $418 was before arriving at the gross profit. Take away the fees it would have been $1218 in profit. After all, the fees are based on gross sales, not gross profit. I thought the same thing at first and had to re-read. I think it was just a badly worded sentence.

[Scott G]

Fed up with gas prices wrote:

Gas prices affect more then just filling up the gas tank in your own car. When fuel prices rise. Delivery companies are paying more to fuel their vehicles. Then they have to raise their delivery surcharges to accomodate the high fuel prices. And retailers have to start paying more for the deliveries. So then retail prices go up to accomodate the fuel prices. And the bad part is. Our wages do not go up to accomodate everything else going up. And that is causing many Americans to cut spending. And some employers have to cut employee hours. Cut pay. And even lay off employees. And up where I live in PA people are starting to drive more aggressive over the rising gas prices as the stress from it goes up. Since the only way to get around in the country is drive.

I dont see why they are driving more agressively because of gas prcies. If anything, they should be doing the opposite to save fuel. But I agree with the rest of what you said. If I am not mistaken, diesal has skyrocketed in comparison to regular gas (I dont have the facts in front of me, but that would be an interesting research. I believe 3-4 yrs ago diesal was cheaper than regular, now it is way more expensive. That will drive up those deliveries even more since many of the trucks drive on diesel).

[Scott G]

Driver wrote:

Attention Mmr. Chaundry and all gas station owner crybabies: can't take the heat of business, hey close up shop and get out of the kitchen.
You're the ones who imposed the plastic rule on us by denying motorists the ability to pay cash after pumping the gas since you're in on the gouging game.
So TOUGH luck buddy, I don't give a darn about your business. I care only about my wallet.
Want my business STOP the damn gouging then.

I think your anger is misplaced. If these guys go out of business, as the laws of supply and demand distate, your prices will go up, not down.

There are two major problems with gasoline prices. One, the US has not been building any new refineries in the last 25 years. In fact the NIMBY's have helped shut down half, though some existing have expanded. Is that not what Cheney said back in 2002 in his "secret" energy planning that the Libs and Dems cryed foul about?. Time had a great breakdown on this many years ago, and I will try to look it up, but it was something to the effect that US refining capacity is down from 18 million (brls or gallons, can't remember) to like 16.3 million over the last 25 years. Now, has our population gone up or down? Are we driving more fuel effiecent cars now or gas-guzzling SUV's?

Second, the emergence of a hostile Russia and Venezuela. As china and India have expanding car markets, world oil production is near capacity. Oil speculators are driving up the prices. Its not Exxon owns alot of these foriegn wells and refines it. Many are nationalized. And this is an incredible boon to Ven, Russia and Iran. They don't have to spend anymore in costs, but they are making boat loads in cash because of the increase in oil prices. There is no excess capacity to drive the prices down as long as we keep guzzling it up at the rate we do. And just think, how are those countries acting towards us? They are using our own money against us. Though we do not buy directly from Iran and Russia in any significant amount, oil is a world commodity bid on, and the countries sell at the prevailing rate, it does not matter to whom they sell it to.

Big oil? Their profit rates are not higher than before. They charge generally a set % over their costs. Obviously, costs have skyrocketed. Their numbers look big, but their profit rate is not that much higher.

This is simplistic, there are other underlying factors, but I dont blame the gas station owners that much unless he is the only one in town and charges $.10. But again, as much of a dense population MD has and as much as we commute, its hard for a single couple of owners to gouge. Think I will pay $3.80 in Frederick if the price is $3.60 in Balt (not real prices)? No, I will just make sure to fill-up in Baltimore.

[1996 Saturn]

Im right now driving a 1996 Saturn Sedan. And believe it or not I payed $20 to fill half my gas tank. As for the gas guzzling SUVs. I hear many people who drive them are paying $80 to $90 to fill up their tank. And when I was a kid it only cost $15 to fill up my mothers 1976 Ford Maverick and $40 to fill up my fathers 1982 Chevy Suburban. And this was in the early to mid 90s. Today gas prices are high. And I am looking forward to when a law is passed requiring automakers to make more fuel efficient vehicles. I was going to get a Ford Ranger pickup truck or similar when my car is payed off. But now I intend on a car no bigger then a Ford Fusion because of gas prices.

[1996 Saturn]

Only the oil companies are benefitting from the rise in crude oil prices. When crude oil prices go up gas prices go up. Delivery companies are spending more on fuel. Then they raise their surcharges. And retailers have to pay more for their merchandise to be shipped. So then they have to raise their prices to be able to pay the delivery surcharges. But our wages do not go up.

Which as the result consumers cut spending causing some retailers to lay off employees. Its getting harder to seek employment. And some retailers have gone out of business. Like Valu City Department stores. They closed down some of their locations this year. I dont know 100% for sure but I hear Circuit City in Lutherville is closing down. My guess is they are going out of business also. And Best Buy isnt doing too good either. But they are still doing okay. But they are forced to cut employee hours as well as layoff employees. I have heard gas used to be $.27 per gallon at one point and $.48 per gallon at another. Mainly the 50s and 60s. As well as the early 70s. And gas prices did not reach $2 a gallon until 3-4 years after Bush became President. When Bill Clinton was president the gas prices climbed into the mid $1 mark.

[Scott G]

1996 Saturn wrote:

Only the oil companies are benefitting from the rise in crude oil prices. When crude oil prices go up gas prices go up. Delivery companies are spending more on fuel. Then they raise their surcharges. And retailers have to pay more for their merchandise to be shipped. So then they have to raise their prices to be able to pay the delivery surcharges. But our wages do not go up.
Which as the result consumers cut spending causing some retailers to lay off employees. Its getting harder to seek employment. And some retailers have gone out of business. Like Valu City Department stores. They closed down some of their locations this year. I dont know 100% for sure but I hear Circuit City in Lutherville is closing down. My guess is they are going out of business also. And Best Buy isnt doing too good either. But they are still doing okay. But they are forced to cut employee hours as well as layoff employees. I have heard gas used to be $.27 per gallon at one point and $.48 per gallon at another. Mainly the 50s and 60s. As well as the early 70s. And gas prices did not reach $2 a gallon until 3-4 years after Bush became President. When Bill Clinton was president the gas prices climbed into the mid $1 mark.

I disagree, the nationiled oil producing countries are the ones benefitting, not the big oil companies. These countries do not have to spend more to pump it out of the ground, but they have many willing oil companies purchasing for gasoline driven economies like ourselves, China and India.

[Donalyn]

I can't help but wonder if rising prices and dwindling supply is not somehow encouraged by the Bush administration. Just think, this might be a GREAT opportunity for him to push through Alaskan oil drilling. Then he could have 1 last "Mission Accomplished" photo - op - all at the same time benefiting his oil company cronies! It's a win/win situation!

[DizBeliever]

These articles are puff pieces. They never talk about the corporate owned stations and the amount of profit they make by extracting the oil, refining it and then selling it retail. They do these rediculous articles on the credit card companies. They think that Americans have not learned the truth about this massive rip off.

[Moe]

Here is the TRUE story of gasoline which not many have read or even heard of. The study was completed 06/26/06. Take the time to read it and become informed when you speak of the high price of petroleum products. A good read.

http://www.senate.gov/~levin/newsroom/support...

[Scott G]

Donalyn wrote:

I can't help but wonder if rising prices and dwindling supply is not somehow encouraged by the Bush administration. Just think, this might be a GREAT opportunity for him to push through Alaskan oil drilling. Then he could have 1 last "Mission Accomplished" photo - op - all at the same time benefiting his oil company cronies! It's a win/win situation!

If you want to think of a reason for the administration for driving up the price of oil, I would suggest an alternative reason that I have never heard of anyone mention. Consider oil was $66 (roughly) a barrel last year this time, now its $133. Consider this scenario, you have stablized Iraq so they can pump more oil, so Iraq's oil proceeds have doubled in a year for the same amount they pumped out, providing them that much more funds for reconstruction, and it is being spread throughout all oil importing countries as oppossed to just us ponying up through tax dollars. Sure, we are defacto paying more taxes through the pump under this scenario, but so is China, India and the rest of the world, as oil is a commodity bought on the world market. Not saying that is what is happening, but is food for thought.