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Old 04-29-2011, 11:39 AM   #90
EpyonXero
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Join Date: Nov 2008
Location: Redneck Riviera, FL
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Quote:
Originally Posted by shmike View Post
I spoke to a station owner the other day and asked him how the higher prices affect his business from a margin perspective.

I didn't realize it until he said it but the higher the prices go, the more he has to charge just to keep the margins the same.

I realize that he is not an "oil company" but your average customer thinks that at $4/gal the guy at the local Mobil is raking it in vs. $3/gal when in reality, the opposite is true.
But lets say the station owner filled his tanks @ $2.50/g on Monday and by Friday average gas prices are $2.75/g. He can now sell his $2.50 gas for $2.75. Thats a 10% a gallon profit on top of the usual margin. Im not saying theres anything wrong with that but I dont buy that the local guys arent making any money when prices go up.
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