Great Deals on Aviation Fuels

[photofly]

It's already well-established that we on the West Coast will pay up to $1.60/l for gas. Why should/would a company drop their retail price 'cos of a drop in the wholesale cost, when there's profit to be made for the shareholders?

Because otherwise one of the other companies will drop their price to get a larger share of the market, first, and they'll make less money for their shareholders and not more. There's not a lot of brand loyalty in gasoline, and there are no costs or barriers to dissuade a consumer from stopping at which ever gas station is the cheapest in the neighbourhood. That's how competition works.

According to 680News:

"En-Pro tells 680 NEWS gas prices will fall ten cents at midnight on March 11th, down to an average price of 92.9 cents/litre at most GTA gas stations."

[corethatthermal]

The seller of an aircraft doesn't much care what he paid for the plane , he really cares about what he will get for the plane when he sells it and hence the profit margin ! When an oil company has one of its subsidiaries digging the bitumen and another refining and another transporting and another selling it to the geas stations ( some own the gas stations also ) Then if the drop in the barrel price is not followed by a similar drop at the pumps you KNOW the oil companies are making up their losses downstream !

[corethatthermal]

Its like the government dropping GST from a product so that the consumer saves that amount ,,,,,NOT gonna happen lOL !

[AirFrame]

Yeah, but an increase doesn't hit you in the pocketbook.

I must be using the wrong money, because every time the price goes up at the pump, it hits me in the pocketbook when I make a purchase.

Sorry, that was poorly worded. I meant that an increase in oil prices doesn't hit a fuel vendor in the pocketbook when the increase happens. At that point the fuel vendor already has tanks full of fuel, and even if not, the next load of fuel to be delivered is already at the refiners and the profit margin is already set.

[Capt. Underpants]

Yeah, but an increase doesn't hit you in the pocketbook.

I must be using the wrong money, because every time the price goes up at the pump, it hits me in the pocketbook when I make a purchase.

Sorry, that was poorly worded. I meant that an increase in oil prices doesn't hit a fuel vendor in the pocketbook when the increase happens. At that point the fuel vendor already has tanks full of fuel, and even if not, the next load of fuel to be delivered is already at the refiners and the profit margin is already set.

Which only furthers the argument that the price at the pump has less to do with supply than it does with the opportunity to cash in whenever possible.

[AirFrame]

Which only furthers the argument that the price at the pump has less to do with supply than it does with the opportunity to cash in whenever possible.

#doesntgetit

[Capt. Underpants]

#doesntgetit

Glad you finally recognized your shortcomings.

[AirFrame]

Glad you finally recognized your shortcomings.

#stilldoesntgetit