[!--QuoteBegin-Canadianmaiden+Sep 2 2005, 04:40 PM--][div class=\'quotetop\']QUOTE(Canadianmaiden @ Sep 2 2005, 04:40 PM)[/div][div class=\'quotemain\'][!--QuoteEBegin--]ok here's the thing I don't understand. Gas companies don't refill their tanks like once every couple of days right?(im not sure on that im young, i just assume they are refilled in longer periodical spaces) so anyways if they are still dispensing gas and oil purchased before Katrina then would not the surge in prices come when they would be trying to purchase the oil that would have been coming if Katrina had not wiped out New Orleans. I assume there if alot i do not know so im hoping someone can fill me in but it is just that I do not see how the prices would jump so quickly while we are still consuming oil and gas that was in our cities before Katrina ever came.
(i think i might have posted this twice by accident sorry if i did so)
[snapback]117275[/snapback]
[/quote]
[!--QuoteBegin-edbaldhead+Sep 2 2005, 06:23 PM--][div class=\'quotetop\']QUOTE(edbaldhead @ Sep 2 2005, 06:23 PM)[/div][div class=\'quotemain\'][!--QuoteEBegin--]It's the most basic of economic pinciples.
Its called supply and demand. [!--emo&
--][img src=\'style_emoticons/[#EMO_DIR#]/sad.gif\' border=\'0\' style=\'vertical-align:middle\' alt=\'sad.gif\' /][!--endemo--]
[snapback]117293[/snapback]
[/quote]
I'm a bit drunk,, but here goes:
Supply and demand is only indirectly related to the jumps in gas prices. It may seem unfair that prices jump up on the gas which is already in the tanks at the stations, but the price is based on how much it will cost the station to refill the storage tanks that particular day. (at the price set by the refinery according to supply/demand laws)
There is such a tiny margin of profit on gas sales for the stations that they need to ensure that they keep on current market values. This is why there are no full-serve stations any more, when you [the owner] pay a pumper his wages, you seldom break even on the sale unless you keep him at minimum wage and have a high volume. This means you have to tip the poor guy!!!! he needs it!!! This is also why stations want you to go in and buy other stuff (like pop, coffee, and candy on which they have a high profit margin)
You may thinnk I'm just talk ing out of me ass., but I have alot of experience in the industry by working in it for two summers and my brother has worked in it for almost 10 years, currently a station manager. (hehehe...how do you think i got the job those summers!!! nepotism kicks ass!)