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Why does the government not enfore price gouging that is takign place daily by most all gas stations?
We have all seen it. The price of crude foges up 5 cents on the evenign news and the nest morning on your way to work, gas has increased 5 cents. I know darn well that the gas I am filling my caar up with was in the underground tank last night. It was not made from the crude that cost 5 cents more a barrel. So why can the gas station increases its prices on this misleading concept? Am I the only one who has noticed this????
7 Answers
- Anonymous1 decade agoFavorite Answer
Gas stations that truly price gouge are being dealt with harshly. The truth is, the stations barely make a profit on gas sales. I have a friend who runs a convenience store. He sells his gas for the same price of everyone else in town. He makes roughly a one-cent profit for a gallon of gas. The only reason he sells gas is because convenience stores who sell gas are more likely to have those gas customers come in and make other purchases. When was the last time you saw a stand-alone business that sold nothing but gasoline and offered no other goods or services? The answer is you never have because they couldn't afford to stay open! The reason for prices to go up in the middle of the day is because the business owner has to adjust for the higher price he or she will have to pay for the next shipment of gas.
- Anonymous1 decade ago
I don't think gas station owners make much money. That's why Exxon-Mobil wants to sell off their company-owned stations. The price gouging takes place at the wellheads when the oil is pumped out of the ground, I say this because the OILCO's make all their money on the crudes they extract and sell based on the prices OPEC charges for its crudes. In fact the OILCO's with refineries who rely on OPEC crude may be actually losing money. The bulk of the profits go to OPEC and after that the OILCO's with Company-owned oil fields in Non-OPEC places! That why they keep pushing to drill for oil in the untapped pristine areas here in the US. Conservation through life-style changes moving away from reliance on cars and trucks makes sense. It the only way to get off the price gougers hooks!
ONE HAS TO UNDERSTAND GAS STATION PRICING BEHAVIOR IN TERMS OF THE CORRUPTED CARTEL-CONTROLLED OILCO PRICING SYSTEM. MANY GAS STATION OWNERS ARE VICS LIKE YOU AND ME! CAPICHE!( PS I AM partly LATIN BUT NOT of ITALIAN heritage!)
"buy a gas station" yeah Exxon-Mobil is selling their company-owned stations! Now why would they do that if that is were the price-gouging happens? The gouging occurs much earlier when that oil from 10 million years ago comes out of the ground. LOL
Source(s): Good Q but you have to understand the economics of oil since OPEC seized oilco properties and related assets and took over the oil industry pricing system! I am doing my best to lift the lid on the garbage can since my A's are meant to help see the real things going on inside the can! But it is amazing so few listen! - Joseph, IILv 71 decade ago
Gas Stations are called from their Distributors regularly- WHAT to charge for their Gas. And if they get a new "call" every day- then we're gonna pay a NEW PRICE- every day. This ISN'T GOUGING- this is HOW the Deal WORKS. And there's NOTHING the Government can do about it. So if you want to Pay Less for Gas- then you're gonna have to USE less Gas. It's THAT simple... :)
- paulLv 71 decade ago
It would be nice if we could find out who is gouging us at the gas pump. I can assure you it is not the average station owner. The station owner must charge the new price for gas each day because that is what he will pay for his next refill. The government is looking for someone to blame, I wouldn't count on them identifying the bad guys.
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- Anonymous1 decade ago
Where do you think the gas stations get the money to fill their tank back up again? Gasoline is just keeping up with inflation. The same as everything else you buy. If you think selling gas is such a profitable business, buy a gas station. That will open your eyes to the facts.
- incomitatusLv 51 decade ago
Actually gas station make only a few cents on a gallon of gas.
This is one of the reasons many gas stations want to prevent customers from using credit card when they buy gas-part of their profit is eaten by the credit card companies.
- 1 decade ago
Basic business economics. So that the gas station can afford the next delivery they must price their gas based on market forces.