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Funny how it never drops as fast.


lew

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I went into town this morning and saw the price of gas was at $1.25.9 just as it has been for the last week or so.

 

Came home an hour later and saw where it jumped to $1. 38.9

 

Interesting how they'll jump the price up 13 cents per litre but they never drop it by 13 cents.

 

Good to know though that our government says everything is on the up & up.

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I just switched to diesel by trading in one of our gassers -- it's price doesn't seem to move around as much and I'm liking the discount compared to regular. Though I understand in the winter it can be reversed.

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My son works at Suncor,Fort McMurray.Gas is about 10-15 cents cheaper on average.There bus monthly pass $35.00 a month and grocery about 10 more per item.He worked at no frills for 3 years here lol.Talk about rent or buying a house,that's a whole different topic.Mind you he makes about $25 more a hour lol.

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I'm not defending the oil companies; because it sure does look like price fixing; ya think? LOL

It's the independent gas station operators who have to play the market to stay alive in the business and why it never drops as fast as it goes up; I ran a gas station for 12 years.

Now lets say it's you that just filled your stations tanks at $1.25 Lt; lets say that equals $80-90 grand in the ground. The street price when you bought the fuel was $1.29 so you're making 4 cents a Lt. The next day the street price jumps to $1.35; but you decide to hold your price down and man are you busy and need to order more gas. But now your price is a $1.32 and street price is on it's way down to a buck 33 you're only making 1 cent if you want to stay competitive. The next thing you see is the street price has dropped to a buck 30, now you're loosing 2 cents. That's when you realize that being a good guy just cost you a whack of money. So yea you want to buy as cheap as possible and hold the price up as long as you can.

When I was into this I was averaging 2-2.5 cent a Lt over the course of a year. I can remember making 10-15 grand off of one load of fuel and loosing it the next.

90% of the dealers now are on consignment and the oil company dictates the street price, offering the dealer 1 cent a Lt commission; That's when I got out.

 

Dan.

 

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This is why Canadian oil should be nationalized, provide for the people of canada first, then sell the excess. We should be paying WAYYYYYY less being a oil producing nation. But we export all of it and buy it back at a premium. It's senseless. Look at other oil producing nations, they pay a lot less for fuel then we do... And then you look at how badly we are taxed on fuel it is enough to make you sick.....

 

Wait till electric cars really kick off... I can only imagine hydro rates and government taxes on electricity.

 

We truly are an ass backwards nation.

 

G

Edited by Gerritt
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I was listening to a Toronto radio station today and they said the city would hit an all time high gas price today of....I think....$1.41.9 and it's expected to go even higher in the near future.

 

 

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I'm not defending the oil companies; because it sure does look like price fixing; ya think? LOL

It's the independent gas station operators who have to play the market to stay alive in the business and why it never drops as fast as it goes up; I ran a gas station for 12 years.

Now lets say it's you that just filled your stations tanks at $1.25 Lt; lets say that equals $80-90 grand in the ground. The street price when you bought the fuel was $1.29 so you're making 4 cents a Lt. The next day the street price jumps to $1.35; but you decide to hold your price down and man are you busy and need to order more gas. But now your price is a $1.32 and street price is on it's way down to a buck 33 you're only making 1 cent if you want to stay competitive. The next thing you see is the street price has dropped to a buck 30, now you're loosing 2 cents. That's when you realize that being a good guy just cost you a whack of money. So yea you want to buy as cheap as possible and hold the price up as long as you can.

When I was into this I was averaging 2-2.5 cent a Lt over the course of a year. I can remember making 10-15 grand off of one load of fuel and loosing it the next.

90% of the dealers now are on consignment and the oil company dictates the street price, offering the dealer 1 cent a Lt commission; That's when I got out.

 

Dan.

 

 

 

 

I've been asking myself a question for a long time now? How does a station pay for it's gas?

 

DanD almost answered it but that was 12 years ago.

Today prices fluctuate daily! Do they make a profit one day and lose it the next?

 

Look at Lew's case 13 cents in an hour if he had his tanks full well. . . .

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This is why Canadian oil should be nationalized, provide for the people of canada first, then sell the excess. We should be paying WAYYYYYY less being a oil producing nation. But we export all of it and buy it back at a premium. It's senseless. Look at other oil producing nations, they pay a lot less for fuel then we do... And then you look at how badly we are taxed on fuel it is enough to make you sick.....

Wait till electric cars really kick off... I can only imagine hydro rates and government taxes on electricity.

We truly are an ass backwards nation.

G

Garrit YOU are so tight, we are backwards, Let's take care of our needs and THEN what ever is left sell that off. Just like the early farmers, keep what tou need and sell the rest for what you don't have.

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Look at Lew's case 13 cents in an hour if he had his tanks full well. . . .

 

I was by the gas station just a couple days ago and and there was a big tandem tanker filling the tanks, so I'm sure he had plenty on hand when the price sky-rocketed yesterday.

 

Always amazes me too how prices are so different from place to place. We've been around $1.25 for awhile now while Toronto was around $1.39. Yesterday, our's went up .13 but Toronto only goes up .03.

 

The radio says the jump has alot to do with what's happening right now in Iraq, but if that was the case, why wouldn't everywhere jump by the same amount ?? :dunno:

 

Perhaps it's time for me to start filling up over at the local Curve Lake reserve where it's a whole bunch cheaper .

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I've been asking myself a question for a long time now? How does a station pay for it's gas?

 

DanD almost answered it but that was 12 years ago.

Today prices fluctuate daily! Do they make a profit one day and lose it the next?

 

Look at Lew's case 13 cents in an hour if he had his tanks full well. . . .

 

No I said a ran a site for 12 year but that doesn't matter.

The consignment guys are safe because its the companies gas in the ground and we all know they're not loosing anything.

How it worked for me was that I got the price per liter on the day of ordering the load. If we worked the market right we bought before a "price restoration" (Their words not mine) and the load would be delivered two or three days later at that price, regardless of street price.

And to answer your last question of one day to the next; YES

I'm talking stocking dealers not company opt sites.

 

Dan.

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