Originally posted by Stan Smith
The cheapest price here, Redding, CA, is around $1.91. It's $2.20 in San Francisco (About 250mi south of here). Ironically, the refineries are just across the bay from San Fran. so the transportation cost is less. Gas is cheaper in Oregon which is further yet from the refineries.
Taxes and overhead account for the difference. Not that I'm making any comments about the tax structure, labor costs, regulatory costs, or lands costs in San Francisco... that might be construed as "political".
As soon as the crude prices were announced, the price at the pump went up immediately. Obviously that had no relationship to the increase in crude prices.
"Obviously"
Retail runs one of two ways. Either the retailer secures the goods from the manufacturer/distributor, sells it, and THEN pays for it, or the retailer pays for it up front, or the retailer turns the stock over EXTREMELY quickly, which has the same effect as pay up front. When retailers pay up front, increases in future cost are frequently passed along immediately because if the need for more $$ to replenish the stock. Decreases are slower simply because experience has taught the market that following a decrease as quickly is an easy way to get whipsawed.
Last Night: Las Vegas, NV - Premium - $2.11
Cedar City, UT - Premium - $1.96
(This is a reversal and magnification of the trend for the last year or so, where LV prices tended to be a bit higher than Southern Utah's. The LV market is following SoCal right now.)
It came to pass...
"Curiosity is the ultimate power tool." - Roy Underhill
The road IS the destination.