Anonymous
Anonymous asked in Social ScienceEconomics · 1 decade ago

Wanna hear it straight about gas prices? Read this...?

I ran across something last night that I have to share. I know that some of you, even you big fans in this audience, believe that Big Oil conspires to raise prices. Don't forget the story we had yesterday. Big Oil making is all kinds of contributions to Democrats, but the Houston Chronicle didn't call 'em "Big Oil." They called 'em "energy industries," and industries in the energy sector. But get this story. It is from Merrill, Wisconsin. "A service station that offered discounted gas to senior citizens and people supporting youth sports has been ordered by the state to raise its prices. Center City BP owner Raj Bhandari has been offering senior citizens a 2 cent per gallon price break and discount cards that let sports boosters pay 3 cents less per gallon." It's the way that he wanted to support various people and activities in his community in Merrill, Wisconsin. But get this. "The state Department of Agriculture, Trade and Consumer Protection says those deals violate Wiscons

Update:

Trade and Consumer Protection says those deals violate Wisconsin's Unfair Sales Act, which requires stations to sell gas for about 9.2 percent more than the wholesale price." Well, now, hold on here just a second! Hubba hubba. Did you understand this? The state demands, in Wisconsin, a retail price of 9.2% more than the wholesale price. My friends, I can remember countless times on this program where you have called here and complained about the gasoline price, complained about Big Oil. I said, "If you want to look at the real profiteers in gasoline, look at the states and look at the feds and look at the taxes that they collect off every gallon. It's pure profit for them because they don't produce it; they don't drill it; they don't refine it; they don't research it; they don't find it. They just got their hand out every time you go to the pump."

Now, it gets even better. "Bhandari said he received a letter from the state auditor last month saying the state would sue him

Update 2:

Now, it gets even better. "Bhandari said he received a letter from the state auditor last month saying the state would sue him if he did not raise his prices." You know, all these upper Midwest states, Wisconsin and Michigan, some of these governors have gone nuts when the price goes up, ripping Big Oil, demanding windfall profits taxes and all that to get even, and Mrs. Clinton said she wants to "take" Big Oil's profits and put it into alternative energy or whatever else. But now we learn that the state of Wisconsin demands a price 9.2% -- not 9.2 cents, 9.2% -- more than the wholesale price. He said it, they demand it, and they're going to sue this poor guy if he offers price cuts to sports boosters and to seasoned citizens. Now, this poor man, by the way, "The state could penalize him for each discounted gallon he sold, with the fine determined by a judge. Bhandari, who bought the station a year ago, said he worries customers will think he stopped the discounts because he want

Update 3:

because he wants to make more money. About 10 percent of his customers had used the discount cards. Dale Van Camp said he bought a $50 card to support the local youth hockey program. It would have saved him about $100 per year on gas, he said." So, folks, the next time you hear any government official start ripping into Big Oil, I want you to remember this story. Add to it the taxes they charge and now this demand that retail gasoline station operators bump their price by a minimum of 9.2% over wholesale.

Update 4:

Mickem is inteligent, he understands free enterprize, and smart money investing which everyone could do, but no most just want to remain ignorant and complain. Finally I meet someone who "GETS IT"! I bet your not a LIB

6 Answers

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  • Thom
    Lv 5
    1 decade ago
    Favorite Answer

    I work for a big oil company. In my opinion I think one of the biggest misconceptions is that the retail fuel business is very difficult. In fact, in many countries we are divesting our assets because they are barely profitable and not worth the liability. The reason for this is the high cost of raw materials used to make gasoline (i.e. crude oil). So where we make money is through the exploration and production of crude oil, which is a totally seperate business that we also happen to be involved in. Crude oil prices are set on the world market, and about a hundred different factors that we have no control over. There's nothing we can do about that. People who have a problem with big oil should get off their high horse and try to actually understand the business. I assure anyone that if they truly understand it they would realize that we're not doing anything wrong or even slightly unethical. We all buy gasoline too. And yes we have to pay the same prices as everyone else.

    The other thing worth mentioning, that I've also seen in other places on Yahoo answers, is that US consumers pay some of the lowest prices for gasoline in the world. Move to europe and see how you like gas prices there. There was also an article on Yahoo the other day (so this isn't just coming from me) explaining how something like 2/3 of countries have subisidized gasoline. Since those countries pay the same low price for gas no matter what, their consumption grows at a much higher rate than ours, and this demand helps to raise the price for the rest of us.

  • 1 decade ago

    Another day ... another conspiracy theory.

    The reason for laws like this is to protect the consumer. From time to time, big [small "b"] oil companies try to squeeze out independent stations by the use of gas wars. They sell gas below cost knowing that while the biggies can absorb the temporary losses, little guys can't. The gas war kills off the independents, and once they're gone, the big guys can charge monopoly prices.

    The story of the little guy undercutting his bigger competition is newsworthy precisely because it's news. Big stations don't let the little fellows undercut for long. If a little guy were to try it one time too many, a gas war breaks out, the little fellow spends his life savings buying his gas at a wholesale price higher than his retail, he closes down, and the price is jacked up higher than it was at the very beginning. That's why laws like the Wisconsin one make sense.

  • Anonymous
    1 decade ago

    it doesn't matter

    what this man does

    the big picture is

    he can raise the price to be in the norm like everyone else

    and offer discounts on other items in his station

    no big deal

    the law is the law

    no need in trying to skip around it

    gas and big oil companies are the prob

    do away with the gas and switch over to another type

    of fuel may solve the problem long term

    not discounts of anykind

  • Anonymous
    1 decade ago

    I get my gas 'free'

    I bought oil company stocks about a year ago. So far, I've made enough to cover my gas for the next 3 1/2 years.

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  • Anonymous
    1 decade ago

    yeah, and they also conspired to tell everybody that pi is 3.14, while in reality it is exactly equal to holy number 3.

  • Anonymous
    1 decade ago

    man that is really messed up

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