I am a critical thinking person. I have a math/science background. I believe in logic, - cause and effect. I even understand (to some extent) Chaos Theory. But there is one thing in my everyday life that I am totally confused by: Gas Prices.
With a business model – a commodity – a grocery store buys a case of peas at wholesale price then figures out the percentage of markup necessary in order to guarantee their retail profit. The can of peas is then placed on a shelf and sold at that price.
At a gas station the owner buys gas at a wholesale price. He then figures the percent of markup in order to make a retail profit. He then sets the price on the pump to resale the gas and extract his profit margin. Then the next day he raises the price; and that evening he raises the price again; the next day he jumps the price a nickel higher; then the next day he lowers the price a penny: What the hell is going on here?
If asked about this he may tell you that the next time he has to buy gas the product will cost more. This doesn’t wash. The grocery store does not change the price of peas daily in order to adjust to a possible icrease in wholesale pea prices at their next purchase.
We are told that the oil supply is plentiful. We know that here in the
oil companies have wells capped and off line in order to regulate prices. These oil companies pollute our environment,
keep oil prices high, collect huge subsidies from the government and buy Senators
and Congresspersons in order to slow and disrupt our move to clean, non-fossil
fuel energy. They are the most profitable companies that
have ever existed on the face of the earth.
All that aside, what the hell is going on at the gas pump?
I’m just asking.