Explain to me how there can be a 33¢ per gallon difference in gas prices within the same metro area.



http://members.cox.net/scribeokc/news_graphics/gasprices.png
Courtesy: http://www.oklahomacitygasprices.com/

Looks like location.

Does it cost that much more to deliver the gas from one side of the metro to the other?

Of course not. LOL! But, we all know that from a retail perspective, you jack up the prices of your merchandise in the wealthier areas. Most of the places listed on the more expensive slide are in Edmond or busy areas on the NW side of town.

I say jack up the prices of gasoline in the general vicinity of 63rd and May! LOL!

DUMP THE PUMP. Get rid of the car & buy a bike. These prices are insane. Thank god I rarely leave about a 5-mile radious and don't use much gas or I would be FURIOUS at having to pay so much. I put in $10 or $15 about every two weeks. It's awesome.

BTW, pug, I didn't realize your dogs had gotten married:

http://www.gotpetsonline.com/pictures-gallery/dog-pictures-breeders-puppies-rescue/pug-pictures-breeders-puppies-rescue/pictures/pug-0085.jpg

LMAO at that pic, what possesses people to put clothes on dogs? I mean really. But maybe I should be thinking about dressing up Chocolate, my cat, in little outfits.

Patrick's comment about location has some merit. Other significant factors include:
1. Bulk purchasing power.
Walmart, Loves, and Flying J can negotiate better contracts.

2. Guaranteed ability to purchase.
The Circle K stores and the like must price the product on what they expect to pay for thier next delivery of "name brand" gasoline.

3. Source of supply
Conversely, the "Mom and Pop's often buy "no name" on the spot market (real gasoline, but a real mystery as to what additive package is added by the wholesaler) often at a price between the bulk purchasers and the name brand stores. The risk is they may not be able to get what they want when they want it.

Disclaimer: Unlike mranderson my family does not own royalties I hope to inherit. I do, however, read several nespapers and industry journals, plus talk to people in the refinery and distribution business.

I say jack up the prices of gasoline in the general vicinity of 63rd and May! LOL!
They already are!

BTW, pug, I didn't realize your dogs had gotten married:

http://www.gotpetsonline.com/pictures-gallery/dog-pictures-breeders-puppies-rescue/pug-pictures-breeders-puppies-rescue/pictures/pug-0085.jpg
SCANDAL! SCANDAL!

Those are imposters... my pugs are adoptive siblings... not lovers!

The best Pug pic I've seen is for an ad for Cheapo CDs in Austin. They have him with a bandana on his head like Tupac used to wear and a tattoo on his chest that says "Pug Life" like Tupac's "Thug Life" oh wait, I just found it....

Patrick's comment about location has some merit. Other significant factors include:
1. Bulk purchasing power.
Walmart, Loves, and Flying J can negotiate better contracts.

2. Guaranteed ability to purchase.
The Circle K stores and the like must price the product on what they expect to pay for thier next delivery of "name brand" gasoline.

3. Source of supply
Conversely, the "Mom and Pop's often buy "no name" on the spot market (real gasoline, but a real mystery as to what additive package is added by the wholesaler) often at a price between the bulk purchasers and the name brand stores. The risk is they may not be able to get what they want when they want it.

Disclaimer: Unlike mranderson my family does not own royalties I hope to inherit. I do, however, read several nespapers and industry journals, plus talk to people in the refinery and distribution business.
I generally agree, except I think 33¢ is a bit excessive of a spread. Not everyone that lives in Edmond has Oak Tree or Gaillardia-sized pocket books.

The best Pug pic I've seen is for an ad for Cheapo CDs in Austin. They have him with a bandana on his head like Tupac used to wear and a tattoo on his chest that says "Pug Life" like Tupac's "Thug Life" oh wait, I just found it....
This is my all-time favorite...

http://www.okctalk.com/gallery/data/2/puginparadise.jpg

You have any pics of yours?

You have any pics of yours?
Why, yes! Yes, I do!

Here's Sam!
http://www.okctalk.com/gallery/data/500/medium/sam-park2.jpg

Here's my BIG girl, Princess!
http://www.okctalk.com/gallery/data/500/princess-park.jpg

Those are pugtastic!

Those are pugtastic!

Agreed. Thanks for posting, pug.

Those are pugtastic!


Agreed. Thanks for posting, pug.

Awwww... now you are making me feel all warm and fuzzy inside... that could ruin my reputation!

Awwww... now you are making me feel all warm and fuzzy inside... that could ruin my reputation!

Maybe this pic will help:

http://www.sportlandtrophy.com/media/mean_dog.jpg

Okay, back to topic.


Bush Says "Divine Intervention" Responsible
For Higher Labor Day Gas Prices
http://www.internetweekly.org/images/bush_gas_prices.jpgCRAWFORD, TX (IWR Satire) -- President Bush today explained the annual rise in Labor Day gas prices as part of God's plan to reward loyal conservatives. "When people ask me why gas prices always seem to rise on holiday weekends, I tell them it's all due to the divine intervention of Lord. He knows that the conservatives, who control the oil, gas and energy reserves in this country, occasionally need a helping hand. He knows these kind hearted conservatives would never price gouge the American people on gasoline.
Shoot, if it wasn't for God naturally driving up gasoline prices on holidays, prices could rise when demand was lower and then my campaign contributors wouldn't be adequately compensated.
You see, God knows that. It's just the Lord's way of being compassionate to conservatives," said Mr. Bush.

I paid 2.99 out in Virginia today. I was just on the phone with a friend from Dallas that was complaining because he filled up for 2.89 before he came to OKC. He drove into town and was shocked by the huge increase in price. Strange...

I just drove in from Idaho yesterday and the prices here were definitely the lowest I saw. The highest was Limon CO, at 3.69. The rest of the trip was in the 3.40 to 3.49 range. I driving to San Francisco where I hear the gas is over 4.00.
Good thing we are taking the hybrid and not the Avalanche.

Got an email joke about gas today

A guy went into a convenience store and asked for $5 worth of gas


The clerk just farted and handed him a receipt

Be grateful you don't need 91 octane. ($3.40 if you're lucky.)

I don't get it. What causes this attitude that somebody is out to get us- or pulling something over on us- because of a variance in gas prices? Does anybody happen to know the difference in the price of a loaf of Wonder Bread at Crest in MWC vs. Albertson's in Edmond?

I don't get it.
I agree.

I agree.

Care to explain, then?

I can explain why Flying J is so much cheaper than everyone else. They own their own refineries and they move the fuel with their own trucks. Not to mention Albertson's buys thier fuel from Flying J.

There is no middle man like most of the fuel stations in OKC. Sams and Albertson's are not in the business to profit off of the fuel. They sell fuel as a conveinence to their customers. Simply because chances our that if you come there for fuel you will come inside the main store and spend money.

I used to work with the daughter of the guy who owns that Conoco on Hefner and May. She used to say he was always complaining about how the newer 7-11 across the corner always undercuts him by a couple pennies per gallon and how that, due to some law, he can't sell it any cheaper. Is there a law that states that the cheapest they can sell it is at some standard price above what they paid for it?

Maybe in those higher priced areas the gas stations are getting screwed on the price of their gas and they have to pass the cost along?

There is a law on the books that mandidates that retailers have to charge cost plus 6%.

Back on Black Friday Wal-Mart was selling an RCA Big Screen HDTV for $499 everywhere nationwide except Oklahoma. They quoted the states fair pricing law prohibited them from selling it at that price. The price of the was regularly priced $899 cost was around $700 or so.

Care to explain, then?
Why bother?

I was in Philadelphia, New Jersey and New York last week and the average price per gallon was $2.89. I came back to OKC and saw $3.15-$3.35 and couldn't figure it out. We are nearly always cheaper the coasts and well below the national average. How come we are currently above the national average??

Yeah it's not the descrepency within OKC, but the lower prices in bigger cities that baffles me.

There is a stupid protectionist law in Oklahoma that's referred to as the "predatory pricing law" that prohibits the sale of merchandise at retail below the retailer's wholesale cost. It ostensibly "protects" the so-called "mom-n-pop" retailer from the WalSlime down the street from purposely undercutting their prices and running the mom-n-pop out of business, but what it really does is artificially increase prices you and I have to pay on everything from soup-to-nuts.

Oklahoma used to be well below averages on gas prices...not so much anymore.

-soonerdave

SoonerDave, Oklahoma's current gas prices have nothing to do with the predatory pricing law. I don't know if that was what you were trying to say, but it seemed like it to me. Wal-Mart (and most 7-11s) is always going to sell gas about 4-5% above wholesale (thereby always barely breaking the law). For some reason, the supply and demand macroeconomic equilibrium has shot up for the state. Maybe it has to do with that refinery fire in Wynnewood. I don't know.

I, for one, like the predatory pricing law. Wal-Mart already has close enough to a monopoly in this state for me. If they were legally able to sell merchandise below cost, they would do it. One by one, they would drive out the competition for those goods. That would not be good for Oklahoma, IMO.

As much as the oil companies would like to - they don't set the price. Gasoline is traded on the commadities market and the buyer sets the price. Just like Ebay. My wife has a flex-fuel Armada but there isn't a flex fuel station anywhere near where we live. Both of our cars are brand new and they are the last two gasoline engines we will own. I'm not buying another car until it is powered by something other than gasoline. If the "energy" companies won't create alternative fuels then maybe the car companies will if I refuse to buy another gasoline engine. It's not much, but it is all I can do.

Why bother?

Mature.

I, for one, like the predatory pricing law.

That's fine, but please understand that WalMart isn't the only retailer that might take advantage of the pricing environment if that law didn't exist.

A "Predatory pricing" law sounds nice, and implicitly casts a villainous role on anyone who might oppose it ("You LIKE predatory pricing?"), but the downside is that it keeps prices high, and that reduces buying power for everyone.

Here's a great example. We hear on almost a nightly basis a hue and cry for "someone" to do "something" about prescription drug prices. So, large retailers such as Target and WalMart (loathe them though I do) decided -- without government inspiration -- that they would offer certain classes of drugs for $5. And there's no question they're taking a loss for every pill sold. But guess what? When word got out that these programs might make it to Oklahoma, some people screamed bloody murder and raised the flag of the Predatory Pricing Law in an effort to keep prices high. Once again, we have a situation where the market sees a problem, market creates a solution, but the government impedes the solution.

Protectionist legislation hurts at the state level just as much as it does at the national level, and a "predatory pricing law" is nothing more than that - protectionism. It's a wonderful concept notionally, but under the light of implementation's reailty, there are significant chinks in its supposed armor.

Reducing America's fuel consumption is a wonderful, politically visible issue, but serves as barely a blip on the radar in the context of the broader issue of global demand for refined petroleum products. In the emerging and explosively growing eastern economies, such as China, their increased consumption represents a demand component the world has simply never previously known and with which the petroleum markets have not previously had to contend. With America failing to tap into its own petroleum resources, and failing to increase refining capacities for oil that it brings in, it shouldn't surprise anyone that gas prices are on their way up. A 10% spot difference in one region could be attributed to any one of a dozen, perhaps 100 factors, but the implicit notion that there must be something inherently sinister or conspiratorial about it simply denies the reality of an incredibly complex world market for refined petroleum.

-soonerdave

Amen Soonerdave

Soonerdave, I guess we will agree to disagree. I think it would cause more long term harm to allow the massive corporations like Wal-Mart to sell gas at or below their cost. It would drive out all of their competition, giving Wal-Mart a monopoly. I sure don't want Wal-Mart to be my only option (frankly, I wouldn't care if it wasn't even an option at all).

Brian - If Wal-Mart could do to OPEC what it has done to other suppliers wouldn't that be good. I would love to see the CEO of Wal-Mart tell Chavez how much he can charge for oil.