Gas prices

Steven Laib stevenlaib at SBCGLOBAL.NET
Sun Apr 11 17:53:55 MDT 2004


Here in Houston the prices are averaging in the low $1.60 range.  We
get gas
at the local super markets.  Kroger and Randalls have a 3 cent per
gallon
discount card, and at HEB you can buy certain items to get "free gas."

Across the driveway from Kroger at $1.59 less three cents, is a Shell
selling
gas for $1.69.

Generally speaking Diamond Shamrock has the lowest prices.
The other name brands are much higher, but location is a big deal.
Go one mile down the street in some directions and see prices go up by
5 or 10 cents.

Steve

On Saturday, April 10, 2004, at 03:47  PM, Dennis Putnam wrote:

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> At 01:37 AM 4/10/2004, you wrote:
>> IMO, the prices are rising because of the recent mergers, and lack of
>> competition.
>
> There is actually a host of reasons. One, there has been no increase in
> refining capacity in 30 years. Demand for fuels far exceeds refining
> capacity. Another is that oil companies now have a patch work of
> various
> fuel blends varying from state to state and in some cases municipality
> to
> municipality, which themselves adds refining cost but also increases
> the
> storage, distribution and transportation costs. We can thank the
> envro-wackos for both.
>
> Actually there is a fair amount of competition at the distribution end
> depending on where you are. GA doesn't have all the enviro-wacko laws
> (yet?) and since it is the confluence of all major pipelines there is a
> plethora of independents. Having the lowest fuels tax in the country
> doesn't hurt either. Also many states heap a sales tax on the final
> price
> of fuel (including the other taxes, talk about double taxation) so that
> accelerates the rate at which prices increase. Currently prices vary
> from
> $1.679 to $1.489 within 10 mile radius of my house. What amazes me is
> that
> while I pump gas at the local Super Wal-Mart for the low price, I can
> watch
> people pumping Exxon across the street at the high price. It all comes
> from
> the same pipeline so go figure. That is the reason oil company prices
> are
> so high, at least in part.
>
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