Quote:
Originally Posted by ptlyon
They're moving money around alright...
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Here you go:
A gasoline retailer typically seeks to establish a retail price based on the cost of replacing the gasoline currently at the retail location, not the cost of that product itself. Basing prices on "replacement costs" is especially critical when wholesale prices fluctuate frequently. A retailer must generate sufficient cash from its current retail sales to purchase its next delivery of gasoline; otherwise, the retailer would be constantly using debt to finance wholesale gasoline purchases.