better gasoline?

[Jeff H]

The hurricane situation shows that we need more refineries and high gas prices isn't as much to do with the higher price of oil as it is the high demand and low supply of gas. Refineries need to be spread out better so there isn't a major disruption like the hurricanes caused. But how many years will it take to build these new refineries and get them up and running? It won't help gas prices any time soon. With the better computer technology in today's fuel injected cars, we don't really need these blends like we used to for emissions reasons.

[Chevy454]

Here's what makes my head hurt...I can understand the supply/demand thing in regards to the refineries and prices, but the thing I don't understand is the way gas stations themselves play with prices. They seem to raise/lower them at will, regardless if they've gotten a new load. I live in a town of only 600 folks, and we have 3 stations in town...my front porch is literally within 100 yards of one station, and the other 2 are within an 1/8th mile...so I know exactly when they get their loads of fuel. But, their prices rise and fall each time you turn around. I get the fact that if you get a load of fuel and it costs the station *more* than the last load that the end price will have to be adjusted to reflect the same profit margin, even though they have fuel left in their tanks that they may have bought for 20 cents less...and while they're usually slower to react to getting a load of gas cheaper, the converse should be true. BUT, how/why do they get by raising the price when they're working on the same load as yesterday, or last week? Shouldn't the end price reflect the same profit margin? The speculation part of the formula should only come into play at the opposite end of the spectrum in the futures market...am I missing something?

[Daves70SS]

[ QUOTE ]
Here's what makes my head hurt...I can understand the supply/demand thing in regards to the refineries and prices, but the thing I don't understand is the way gas stations themselves play with prices. They seem to raise/lower them at will, regardless if they've gotten a new load.

[/ QUOTE ]
I think the news media plays a big part in the rapid increase in gas prices from one day to the next. It seems that when they report on the news that there sources have reported that there will be an increase in gas prices when the hurricane hits and it could reach as high as $3 - $4 a gallon, the station owners started raising there prices the very next day.I think if the news media would have kept there mouth shut the prices wouldn't have gone up so soon and as fast as it has and maybe not as high.
Once its reported the station owners think that since the consumer is already prepared for the increase that gives them the ok to raise the prices right away.
Have you ever noticed that when the state or city government says that there going to investigate price gouging at some stations the prices start dropping. I wonder why?

[427TJ]

[ QUOTE ]
But how many years will it take to build these new refineries and get them up and running?

[/ QUOTE ]

What's going to take time is the oil lobby getting the federal government to fund the construction of these new refineries. It'll be spun as a "national security" issue and our tax dollars will eventually go toward building "strategically secure" oil refineries. Yes, big oil is absolutely awash in huge, huge profits, but they are likely unwilling to spend much on refinery construction/upgrading. "Hey, why not have the government build them for us?" Heck, if baseball teams can get city governments to fund new stadiums then why can't the federal government pay for new refineries?

Socialism is for the rich: The gov't bails out big business when big business screws up and/or can't figure out how to profit or compete. "Hey congress, if you don't let that bigger, smarter dog eat me I'll fund your next election campaign."

Capitalism is for everyone else: "You screwed up huh pal? You're on your own buddy. Hey, that's the free market at work. Survivial of the fittest, dog eat dog."

I'd bet the oil executives and their lobbying firms are twisting the s__t out of congress' arm to have tax money fund refinery construction. They just have to figure out how to do it without sparking taxpayer outrage.