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View Full Version : Gas station owner told to raise prices


Stinger
05-09-2007, 11:44 AM
Since this seems to be a hot topic this week here is another gas story. I just found it an interesting story.

MERRILL, Wis. - 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.

But the state Department of Agriculture, 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.

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. 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 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.

LINK (http://news.yahoo.com/s/ap/20070509/ap_on_fe_st/odd_cheap_gas_7)

DaFace
05-09-2007, 11:48 AM
Prior to about a month ago, a similar law was on the books here that kept grocery stores from offering gas discounts as incentives to shop at their locations (i.e. spend $100 on groceries and save $.10 on your next gas purchase). Everyone got pissed off about it, though, and a new law makes it OK.

Donger
05-09-2007, 11:53 AM
Those evil oil companies...

Eric
05-09-2007, 11:53 AM
2 cents a gallon! Whhhhoooopdi

BigMeatballDave
05-09-2007, 12:01 PM
Gas prices suck. But, we have had it great in the USA for years, in respect to said prices. Canada and Europe are laughing at us. Nothing new for them. I can't do anything about what I pay for gas, but I can do something about how much I use. I am moving closer to my job. I drive 30 miles a day.

Cochise
05-09-2007, 12:03 PM
Damnit Bush! :cuss:

gblowfish
05-09-2007, 12:06 PM
Screw those youth soccer leagues. Soccer is for pussies.

BigMeatballDave
05-09-2007, 12:07 PM
I can recall about 2 weeks before Christmas, 2003. Gas was around $1.30. Then, after the 1st of the year, it went up from there, and never looked back. Why was that?

BigMeatballDave
05-09-2007, 12:11 PM
http://findarticles.com/p/articles/mi_go1505/is_200312/ai_n6588102

December, 2003
NEW YORK -- Lower commercial petroleum inventories, lower US crude imports, and lower refinery runs combined on Wednesday with fairly thin trading on the New York Mercantile Exchange (Nymex), pushing January crude oil futures to a close at $33.35, shortly after the market hit a session high of $33.77.

jAZ
05-09-2007, 12:15 PM
It sounds to me like legislatively mandated price fixing (at least within a 9 cent margin of wholesale pricing). That prevents retail outlets from competing on price.

It's one thing to legislate a cap on prices (in theory that benefits the public), it's another to set a floor (that benefits only the oil companies as far as I can tell).

jAZ
05-09-2007, 12:18 PM
I can recall about 2 weeks before Christmas, 2003. Gas was around $1.30. Then, after the 1st of the year, it went up from there, and never looked back. Why was that?
The pending and now current war in Iraq.

What I want to know is why prices are back up to $3.00 per gallon without the shock that pushed prices up there last time. It's seems that we snuck up the $3 this time by natural economic forces. If we get a similar shock this time, it'll be $3.50 or $4.00.

Valiant
05-09-2007, 12:18 PM
Prior to about a month ago, a similar law was on the books here that kept grocery stores from offering gas discounts as incentives to shop at their locations (i.e. spend $100 on groceries and save $.10 on your next gas purchase). Everyone got pissed off about it, though, and a new law makes it OK.


Hyvee used to coupons in the paper, buy certain items and spend 50$ or more and get anywhere from 10-20 cents off a gallon..

BigMeatballDave
05-09-2007, 12:23 PM
The pending and now current war in Iraq.

What I want to know is why prices are back up to $3.00 per gallon without the shock that pushed prices up there last time. It's seems that we snuck up the $3 this time by natural economic forces. If we get a similar shock this time, it'll be $3.50 or $4.00.This WAS in 03. The war started early in 03. Yeah, In my area, it has gone up more than a dollar in the last 3-4 months. Why?

BigMeatballDave
05-09-2007, 12:25 PM
I am preparing for $4. That is the main reason I am moving.

Donger
05-09-2007, 12:25 PM
The pending and now current war in Iraq.

What I want to know is why prices are back up to $3.00 per gallon without the shock that pushed prices up there last time. It's seems that we snuck up the $3 this time by natural economic forces. If we get a similar shock this time, it'll be $3.50 or $4.00.

Refinery output, or lack thereof.

There have been multiple threads on this issue.

http://www.chiefsplanet.com/BB/showthread.php?t=161736
http://www.chiefsplanet.com/BB/showthread.php?t=162683

Carlota69
05-09-2007, 12:27 PM
The pending and now current war in Iraq.

What I want to know is why prices are back up to $3.00 per gallon without the shock that pushed prices up there last time. It's seems that we snuck up the $3 this time by natural economic forces. If we get a similar shock this time, it'll be $3.50 or $4.00.
I paid $3.69 per gallon over the weekend in Los Angeles (its $3.39 in Vegas right now)...it will be $4.00- $4.50 by summer

BigMeatballDave
05-09-2007, 12:34 PM
Refinery output, or lack thereof.

There have been multiple threads on this issue.

http://www.chiefsplanet.com/BB/showthread.php?t=161736
http://www.chiefsplanet.com/BB/showthread.php?t=162683No one wants to build new refineries.

Deberg_1990
05-09-2007, 12:48 PM
Why is Wal-Mart allowed to sell for 3 cents off a gallon if you buy their stupid gift cards then??

BigMeatballDave
05-09-2007, 01:11 PM
Why is Wal-Mart allowed to sell for 3 cents off a gallon if you buy their stupid gift cards then??Cuz walmart iz teh debil!

Donger
05-09-2007, 01:12 PM
I paid $3.69 per gallon over the weekend in Los Angeles (its $3.39 in Vegas right now)...it will be $4.00- $4.50 by summer

It is possible. Many things would have to happen, but it is possible,

Donger
05-09-2007, 01:12 PM
No one wants to build new refineries.

Correct.

Cochise
05-09-2007, 01:14 PM
This is kind of ironic, because a lot of the same people who are complaining about the big guy not being able to discount gas a couple of pennies would also complain if the big guy continued to discount gas to put the little guy out.

Cochise
05-09-2007, 01:16 PM
Correct.

Why is it that no new refineries have been constructed in however many years?

Do the oil companies not want to build them? (Seems silly to me, more throughput means more profit)

Does the current refining capacity generally match the quantity supplied of oil, rendering more capacity not all that useful?

Are legal/regulatory/political concerns keeping refineries from being built?

Donger
05-09-2007, 01:20 PM
Why is it that no new refineries have been constructed in however many years?

Do the oil companies not want to build them? (Seems silly to me, more throughput means more profit)

Does the current refining capacity generally match the quantity supplied of oil, rendering more capacity not all that useful?

Are legal/regulatory/political concerns keeping refineries from being built?

There two reasons why the oil companies haven't built one: profit and red tape. A new refinery would be a huge capital expense. Sure, they presently have the cash, but realizing a profit from a new refinery would take years. Also, our government has made building (let alone getting one approved) a refinery an extremely painful process. Environmental regulations, politics, etc. Instead, they have chosen to expand existing refineries to meet demand (and import refined gasoline).

Our refineries operate from ~85 to near 100% of capacity, 24/7. Even at 100%, they cannot meet demand. That is why we not only import crude but also gasoline.

Demonpenz
05-09-2007, 01:22 PM
sad to hear it. My kids will never know the joys of getting out on the open road with the car. No boating, no jet ski's, no fishing. Sad

gblowfish
05-09-2007, 01:23 PM
There two reasons why the oil companies haven't built one: profit and red tape. A new refinery would be a huge capital expense. Sure, they presently have the cash, but realizing a profit from a new refinery would take years. Also, our government has made building (let alone getting one approved) a refinery an extremely painful process. Environmental regulations, politics, etc. Instead, they have chosen to expand existing refineries to meet demand (and import refined gasoline).

Our refineries operate from ~85 to near 100% of capacity, 24/7. Even at 100%, they cannot meet demand. That is why we not only import crude but also gasoline.

Why not build refineries in Mexico? They must have less stringent environmental laws, although this country's EPA is just a shell under BushCo.

Seems like if we can import our cars from Mexico, we can import the go-go juice too.

Donger
05-09-2007, 01:24 PM
Some potentially good news today: crude dropped $1 and gasoline inventories increased for the first time in 13 weeks. Also, refineries are beginning to increase their output. Up to 89% now.

Pitt Gorilla
05-09-2007, 01:25 PM
There two reasons why the oil companies haven't built one: profit and red tape. A new refinery would be a huge capital expense. Sure, they presently have the cash, but realizing a profit from a new refinery would take years. Also, our government has made building (let alone getting one approved) a refinery an extremely painful process. Environmental regulations, politics, etc. Instead, they have chosen to expand existing refineries to meet demand (and import refined gasoline).

Our refineries operate from ~85 to near 100% of capacity, 24/7. Even at 100%, they cannot meet demand. That is why we not only import crude but also gasoline.They have the cash to get around the costs and the red tape. It's a matter of "want to" (I realize that includes stock holders).

Saulbadguy
05-09-2007, 01:26 PM
Some potentially good news today: crude dropped $1 and gasoline inventories increased for the first time in 13 weeks. Also, refineries are beginning to increase their output. Up to 89% now.
Not buying your snake oil again, Donger.

Donger
05-09-2007, 01:26 PM
Why not build refineries in Mexico? They must have less stringent environmental laws, although this country's EPA is just a shell under BushCo.

Seems like if we can import our cars from Mexico, we can import the go-go juice too.

That question was asked in another thread. I honestly don't know. I do know that the Mexican government owns their biggest oil company, so perhaps they wouldn't like the competition. Also, we already import crude from Mexico.

Donger
05-09-2007, 01:27 PM
They have the cash to get around the costs and the red tape. It's a matter of "want to" (I realize that includes stock holders).

They presently have the cash, yes. But don't forget, they haven't always been profitable.

Donger
05-09-2007, 01:28 PM
Not buying your snake oil again, Donger.

Again? Have I been wrong on something else?

Saulbadguy
05-09-2007, 01:29 PM
Again? Have I been wrong on something else?
Oh, probably.

Cochise
05-09-2007, 01:30 PM
They have the cash to get around the costs and the red tape. It's a matter of "want to" (I realize that includes stock holders).

I don't understand. I thought his explanation of capital expenditure and regulatory concerns was sufficient. If they would make significant money off it, why wouldn't they "want to"? The chief "want" is profit, is it not...?

Having trouble understanding where you are coming from, not being adversarial or whatnot.

As far as shareholders go, I have a position in XOM, and if they could make more money with a new refinery then hell yes I want them trying to build one. The hell with Al Gore.

Donger
05-09-2007, 01:32 PM
Oh, probably.

Tease.

luv
05-09-2007, 01:35 PM
What kind of irks me is that gas prices for the same chain are lower in one part of town (2.83), but higher in another part of town (2.99). How can they do that?

Donger
05-09-2007, 01:41 PM
What kind of irks me is that gas prices for the same chain are lower in one part of town (2.83), but higher in another part of town (2.99). How can they do that?

Because it's retail. For example, gas stations near airports are always $.20 to $.30 higher than those elsewhere. Why? Because they know that they can charge higher prices because of their location. Business people filling up their returned rental cars, folks coming from vacation and realizing they don't have enough gas to get home. That sort of thing.

Demonpenz
05-09-2007, 01:43 PM
Because it's retail. For example, gas stations near airports are always $.20 to $.30 higher than those elsewhere. Why? Because they know that they can charge higher prices because of their location. Business people filling up their returned rental cars, folks coming from vacation and realizing they don't have enough gas to get home. That sort of thing.


exactly thats where the gas stations get most their money.

ct
05-09-2007, 01:44 PM
What kind of irks me is that gas prices for the same chain are lower in one part of town (2.83), but higher in another part of town (2.99). How can they do that?

real estate

luv
05-09-2007, 01:45 PM
Because it's retail. For example, gas stations near airports are always $.20 to $.30 higher than those elsewhere. Why? Because they know that they can charge higher prices because of their location. Business people filling up their returned rental cars, folks coming from vacation and realizing they don't have enough gas to get home. That sort of thing.
Looking more closely at when each location was last updated, more of the lower prices where updated either last night or before 7AM this morning. I'm sure more have gone up. Can't make a true comparison.

Donger
05-09-2007, 01:47 PM
Looking more closely at when each location was last updated, more of the lower prices where updated either last night or before 7AM this morning. I'm sure more have gone up. Can't make a true comparison.

http://www.gasbuddy.com/GB_Map_Gas_Prices.aspx?c=Springfield&s=MO

luv
05-09-2007, 01:48 PM
real estate
Yeah, it sucks living on the south side of town. Well, when it comes to gas prices.

luv
05-09-2007, 01:49 PM
http://www.gasbuddy.com/GB_Map_Gas_Prices.aspx?c=Springfield&s=MO
Here's what I was looking at. Doesn't do you a lot of good if you're not familiar with Springfield though.

http://www.missourigasprices.com/Springfield/index.aspx