cellio: (mandelbrot)
[personal profile] cellio
Tonight I saw a 35-cent span of gas prices (!). No, I don't mean from the cheap stuff to the expensive stuff; I mean the same stuff at different stations. So don't just take the first thing you see.

Oakland (Blvd of the Allies): $2.83
Squirrel Hill (Beacon and Murray): $2.96
Regent Square (Braddock and W. Hutchinson, and the BP down the hill): $2.61.

I'm glad I bought groceries tonight; otherwise I would have had no reason to venture into Regent Square. Mind, I didn't need to fill up yet (tank was a bit over a quarter full), but knowing that prices will only go up in the short term and I'd need to do it soon, I figured that if I saw a good price I'd take it.

Yeah, I just called $2.61 a good price.

Under normal conditions I fill up about once a month, so maybe if I'm lucky the spike will come and go before I'm directly affected. Indirectly, of course, we'll all be affected; they can't raise fares for public transit quickly, but the price of just about anything you buy that has to get from somewhere else to the store is going to rise.

(no subject)

Date: 2005-09-01 03:29 pm (UTC)
From: [identity profile] brokengoose.livejournal.com
Apparently, a lot of the problem is speculation on the part of the gas stations.

They know that the next time they fill their tanks, it'll cost more. Consequently, they're trying to put their prices somewhere in between "reasonable profit for this tank" and "reasonable profit for the next tank". They're doing this because they don't want to suddenly raise prices by $1.00 ('cause even if it's justified, we don't really have a free market, and they'll be accused of gouging).

Costco has gas pumps and a store policy of "max 15% mark-up over our price". The guy at the pumps yesterday was saying that he'd been going nuts trying to figure out what their wholesale price was. The wholesale price was jumping around by more than $1/gallon over a span of a few hours.

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