What's going on here? Pic

Diesel was $4.24 in Monday? I thought barrel oil was dropping in price, why is it going up at the pump? Glad my diesel truck and v8s are parked for the winter.

I think you need to move to Missouri. Unleaded $2.87

Not sure what diesel is, but sure not as high as where you are.

Gene

"I thought barrel oil was dropping in price, why is it going up at the pump?"

A question where "Government" is the answer, finally.

Alot of that is NYS tax.

The fuel man brought heating oil Thursday. The price of that was $3.40. I hope diesel isn't too far from that,I just sucked the diesel barrel dry this afternoon. It's usually 5 cents less than heating oil. Hope so.

Heating season, its cold in the NE.

Like propane, and natural gas, we are using more than normal heating oil this year.

Any time there is a prolonged cold snap in the NE, where heating oil is a more common heating fuel, it will spike the price of heating oil/diesel/kerosene.

Every time. Seen that for many decades now.

Paul

I dont remember the price a couple days ago, but right now around here in central Ok its around $3.60+.

Heating oil hit $4.04gal last week.

Polar Vortex

I'm guessing you mean off road diesel? I don't know how much It is here, I saw in there building that home heating oil delivered was $3.69 last week, I forgot to look today. The owner also put in a 2000 gallon tank with a pump at the store for home heating oil, I saw today it was up to $4.05. I guess your not supposed to run hh in your tractors, we are supposed to use off road? Which is a bit more the last time I checked.

Yet there are those people that still want their long lasting fuel saving diesel???
That diesel fuel is 123 % more costly.

Ok, thanks for your delightful input.

Yhe ida was clear, but Check your math 8) Jim

One of the local reasons here is that all the big hospitals and a power plant that I know of have been shut off of natural gas that is hauled in by the trailer load. Google XNG, or Express Natural Gas. These places have gone to backup systems and are burning diesel fuel like it's going out of style! I think another part(my wild a$$ guess) is NY has gone to ULSD for heating oil....diesel fuel. With all the cold the demand is up and supply is down.

We saw a spike in price a the end of the week, the price has come off a bit now, but it's still ugly.

I concur with you Paul, been here all my life. Same story every cold snap. I haul heating oil for a living.

Stumpy

I just read that Consumer's said that the average customer had used 26% more NG than at this point last year. That's a big bump in useage.

Yes your right NY went to ULSD, what I don't understand and it's been this way for years is 2 things, fuel goes up very fast but drops very slowly, other thing is the price goes up on the same fuel that was in the tank the day before? Lets say Monday it's $3.45 than Tuesday Friday ect it goes up but there was no new delivery?

Your lucky, it was $1.539 per liter here.

i know their is a shortage in Ohio Indiana on fuel oil and propane. The Governor has lifted the hour a tank truck driver hauling home heating oil and propane can work until the shortage is over. Diesel here in southern Ohio went to $4.09 and propane suppose to go to $5 bucks.

Noticed at my local Quickway (Mirabito) a sign stating that due to the extreme cold weather the diesel fuel was a 20% blend of kero with the diesel fuel. When they felt the temp would return to "normal" they would go back to the winter blend. I figured that would of course cost more

OLD may not let anybody else in!!!

I have an once of gold. I haven't bought or sold any, but the price goes up and down. Not being a smart a$$, just trying to make a comparison.

A very basic look behind the curtain would be the indirect ratio of wholesale and retail cost of fuel. Say using rough numbers there is a general 50 cent per gallon margin(this is just a round number...it changes)there is 50000 gallons in storage, I need to sell it, the market price goes up. if I sell it below market, I then have to front more $ to resupply. So on hand price per gallon goes up. Now I have 50000 gallons of oil and the market drops. I now have oil that I have to lower the price on to sell and stay competitive without losing money. The price drops slowly. The trick is to smooth some of the everyday ups and downs of the market without changing your street price everyday. The profit margin changes daily to smooth out some of the peaks and valleys.
Alot of what happens at your retail outlet is determined at a much higher level....starting before refining.

I hope that helps....not that it's an easier pill to swallow.

Stumpy

Thank you for explaining stumpy, that does help, just like stocks the price goes up and down I guess.

Kinda like this Bought one gallon of LP for 1.00 normally sell it for 1.50. So I sold it for 1.50 and the wholesale price is now 2.00. What do I pay for the new fuel with. Have to borrow 50 cents to get more fuel to sell. Who pays overhead? Now LP is 3.00. So you see I need to get 4.00 now and I still may lose. If the wholesale price goes to 4.00. Had a hardware store that wouldn't never mark up the merchandise after it was priced. Good old boy, but soon went broke.

Who do you drive for?
And --- When we gonna meet for coffee, like we were talking about a couple years ago?
I could meet you at "My Sister's Kitchen" next to Blue Seal!
Oh yeah, my treat!

The Government controls the weather, and the Canadian pipeline explosion? Get real! Crude is at about 97, that up about 6 in the last couple of weeks.

I work for fuel delivery co. we try to get .25 over cost less for 1500 gal or more If you figure in the extra cost of trucks and fuel the insurance etc we are not making mush money Boss said when he started hauling years ago you could get .50 or more without problem everybody thinks delivery guy is making all kinds of money think again all the money is being made by oil company not anybody in retail end of things same with propane wholesale went from under $1.50 to over $4.00 in two weeks our margin has not changed

Last I knew we were #1 in taxes

Yep, you can say that again.

The problem is many hands are stuck out before you ever get gasoline to put in your car.

Crude oil is sold on the stock market. Price is set by that. You sell your oil or sit on it depending if you like the price. How much storage you have comes into play.

Wholesale gasoline and diesel price is sold on the stock market. You sell your oil or sit on it depending if you like the price. How much storage you have comes into play.

Rack price is a combination of wholesale price and storage and loading fees. Lots of things come into play here. LIKE......
I have a contract with xxx loading rack to store and load 100,000 barrels of gasoline a month. If I price my gas low it sells fast and I reduce profit. If I price it high it does not sell. Not only am I losing money by not selling I must move my 100,000 barrels a month to keep my contract. You can sometimes find some sellers making great deals around the end of a month to move product.

Stations are not allowed to buy from loading racks. You need to be a jobber to buy.
So this jobber adds transportation (couple cents a gallon) and profit to the rack price.
State Excise Tax; Federal Excise Tax; State and Local Sales Tax; State Underground Storage Tank Fees get added also.

So now we have said gasoline at the station or jobber bulk plant. You would think we could just add our profit margin to the cost to come up with a pump sales price. WRONG!!!!!
While some small stations may do this the big boys do not. They check the price of the station across the street and set their price by that. Does not matter if they paid $2.50 or $2.99 for their gas. If the guy across the street has it for $3.00 they will sell theirs for $3.00

Its a big game of cat and mouse for the big boys and most play it well.
But look at Flying J. They went out and bought mega futures on Diesel fuel for delivery months down the road trying to play the game rather than just buying at todays rack price. Great idea as long as the price keeps going up. But it bit them in the butt when the price fell sharply before their future contract ran out. They were buying diesel for say $3.00 on month old contracts and the station across the street was selling it for $2.50. Their only out was to sell of mega shares to Pilot because no bank would touch their mega debt.

I'm eyeing up a new Mercedes Benz E250 Blue Tec 4-Matic sedan. If these diesel fuel prices keep going up, I should be able to get a good price on the car, right? (;>)) 820 mile range.

Ciardelli Fuel.


Email is open!

happens every winter.
The rules of supply and demand are overruled
in a 'captive market' situation.
live where it's cold?....make heat, or die.
guaranteed tax income.
since fuel oil heat will work on kero/diesel/heating oil,
the price has to be the same to guarantee the income.
Alternative heat?
covered, raise the price of propane to match.
pass legislation to allow electric cost to increase in case people go back to electric.
wood?, regulate wood stoves out of existence, and outlaw
trucking wood more than 50 miles in state.
(to stop some bug, LOL, they're here, they will spread..period)
so my unlimited supply of wood at my camp 110 miles away is useless to me.
Welcome to NY

And a gasser tractor will burn 3X the fuel as a diesel and no I don't need some long winded theory I had 2 AC 190XT tractors and the gasser would burn at least 3X as much fuel as the diesel doing the same job.Plus diesel engines will last way longer before needing major work.