They are enjoying a new profit margin...
They are enjoying a new profit margin...
http://www.cnbc.com/2016/01/18/gas-wars-a-gallon-is-just-46-cents-here.html
While gas prices are low nationwide, some stations are slashing the fuel's price to rock-bottom levels to the tune of less than 50 cents a gallon.
The drastic price cuts are part of a gas price war at three Houghton Lake, Mich., stations.
During the last three days, the prices dropped below a buck per gallon, falling as low as 46 cents at Sunrise Marathon. Meanwhile, the Beacon & Bridge gas station was as low as 47 cents, said employees of each station in interviews with CNBC.
A nearby Citgo says its prices slumped to 95 cents a gallon.
There have been long lines at the stations for most of the weekend, according to the three stations, with police officers directing traffic in the area due to the congestion.
Local stations first reported this news.
While gas prices are low nationwide, some stations are slashing the fuel's price to rock-bottom levels to the tune of less than 50 cents a gallon.
The drastic price cuts are part of a gas price war at three Houghton Lake, Mich., stations.
During the last three days, the prices dropped below a buck per gallon, falling as low as 46 cents at Sunrise Marathon. Meanwhile, the Beacon & Bridge gas station was as low as 47 cents, said employees of each station in interviews with CNBC.
A nearby Citgo says its prices slumped to 95 cents a gallon.
There have been long lines at the stations for most of the weekend, according to the three stations, with police officers directing traffic in the area due to the congestion.
Local stations first reported this news.
http://www.bloomberg.com/news/artic...kota-crude-oil-that-s-worth-less-than-nothing
Oil is so plentiful and cheap in the U.S. that at least one buyer says it would pay almost nothing to take a certain type of low-quality crude.
Flint Hills Resources LLC, the refining arm of billionaire brothers Charles and David Koch’s industrial empire, said it offered to pay $1.50 a barrel Friday for North Dakota Sour, a high-sulfur grade of crude, according to a corrected list of prices posted on its website Monday. It had previously posted a price of -$0.50. The crude is down from $13.50 a barrel a year ago and $47.60 in January 2014.
Oil is so plentiful and cheap in the U.S. that at least one buyer says it would pay almost nothing to take a certain type of low-quality crude.
Flint Hills Resources LLC, the refining arm of billionaire brothers Charles and David Koch’s industrial empire, said it offered to pay $1.50 a barrel Friday for North Dakota Sour, a high-sulfur grade of crude, according to a corrected list of prices posted on its website Monday. It had previously posted a price of -$0.50. The crude is down from $13.50 a barrel a year ago and $47.60 in January 2014.
I remember those days and the load of crap about gas costing so much because we were using it faster than they could refine the stuff. So did we build a butt-load of new refineries or what? I would think the demand would be higher now that more folks can afford gas.
I would love to hear the explanation as to how, no matter the cost per bbl, the refining has caught up so well.
I agree on the shipping cost of everything. I also bet it wont come down, just go in the pockets of those who were yelling so much about it when fuel was so high.
I can see in the short term future places shutting down for maintenance or a fire, then we will hear the good old battle cry of .... we cant cant make the fuel fast enough to keep up.....
How the hell can you drop the price to $0.46/gallon? Oklahoma's gas tax is, IIRC, relatively low at about $0.32/gallon, and the gasoline itself ain't free. It has to be costing them a metric boatload of money to sell at that price...
Oilfield workers have been making VERY good money for years. There's a reason, of course... dangerous, dirty work that requires people to be away from home for days or weeks at a time, requires hotel rooms and meals away from home, etc.
But saving hundreds each month myself, or close to a hundred for regular folks... ALL folks... it's a huge savings in the economy that can be spent elsewhere.
I say let it drop...
But saving hundreds each month myself, or close to a hundred for regular folks... ALL folks... it's a huge savings in the economy that can be spent elsewhere.
I say let it drop...
I remember back when fuel got to $2 a gallon, a price war cropped up between two truck stops somewhere in OK/TX, by the end of the weekend both of them were selling gas for 99 cents.
We can now afford to drive to town, just cant afford things in town.
Why is that? Don't prices of regular things go down when gas prices go down? I don't know, I don't do the shopping... but that's how it's SUPPOSED to work.
<edit> At one point I was spending $400-500/month on gas... I'm glad I'm not spending that anymore.
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