OT: Gas prices in your area?

[conversationpc]

What are gas prices in your area? Just curious to see what everyone else is paying at the pump.

It went up to about $3.95/gallon here in the Indianapolis area yesterday.

[scarygirl]

$3.73 to $3.79

[Rick]

$3.69 here the last few days.

[Carlitto H@kk]

I'm just north of Salt Lake City and the average
price for 85 octane is $3.40 - $3.50...

[Sarah]

3.99 in Los Angeles

[Lula]

just under $4 (cheap stuff) here in santa monica

[StevePerryHair]

Here in the Orlando area it was about $3.55 and on Monday it went up to about $3.75-$3.80 for the lowgrade.

[G.I.Jim]

They're high enough everywhere, that I think we should all get together as a country and stop these bastards! I've yet to understand how these damn companies can raise their profit margins by hundreds of percentages in a couple of years, yet there's nothing that the country can do about it!??? WTF! I understand the concept of a free economy, and everyone's right to make a dollar here in the U.S., but when it cripples the whole fucking country....DAMNIT!!!!

I filled up yesterday on the way to work, and it was 85 fucking dollars!!! I'm about to have to buy a bike, and just peddle my ass 45 miles each way to work!

I appologize for this hostility, but this subject makes me sick and makes me want to HURT SOMEONE REALLY....REALLY BADLY!!!


Oh.....to answer your question, it's up to about $3.75 here in South Carolina.

[conversationpc]

They're high enough everywhere, that I think we should all get together as a country and stop these bastards! I've yet to understand how these damn companies can raise their profit margins by hundreds of percentages in a couple of years, yet there's nothing that the country can do about it!??? WTF! I understand the concept of a free economy, and everyone's right to make a dollar here in the U.S., but when it cripples the whole fucking country....DAMNIT!!!!

Profit margins for oil companies have stayed virtually the same and are lower than lots of other industries.

[strangegrey]

$4.05 for regular here on Long Island

[strangegrey]

Profit margins for oil companies have stayed virtually the same and are lower than lots of other industries.

It's not the net profit margin, it's the net profit. profit margins are generally static within a specific industry. They dont change...so trying to use that argument is pointless. The fact that oil company's have been able to drive up revenues is where they are making money hand over fist.

They're charging 4 dollars a gallon now...so that 9% profit just *doubled* from a few years ago, when it was 2 dollars a gallon.


Sure, the price of gas is partially beyond their control...however, some of the drivers of gas prices have been put into action by very highly placed 'friends' of big oil. That's without question....

[conversationpc]

$4.05 for regular here on Long Island

I guess I should feel somewhat comforted that SOMEONE is paying more than I am. My area is usually slightly lower than the national average. Instead we are now 15 to 20 cents OVER the average.

[conversationpc]

Profit margins for oil companies have stayed virtually the same and are lower than lots of other industries.

It's not the net profit margin, it's the net profit. profit margins are generally static within a specific industry. They dont change...so trying to use that argument is pointless. The fact that oil company's have been able to drive up revenues is where they are making money hand over fist.

They're charging 4 dollars a gallon now...so that 9% profit just *doubled* from a few years ago, when it was 2 dollars a gallon.


Sure, the price of gas is partially beyond their control...however, some of the drivers of gas prices have been put into action by very highly placed 'friends' of big oil. That's without question....

Eh, it's not quite that simple, either...

Oil companies aren't as profitable as you think

I sometimes get the impression that people think oil executives hold clandestine meetings where they unilaterally decide to set the price of oil and gas in order to maximize their profits. After maniacally laughing about how they are gouging the American public, they then go swimming in pools of gold ala Scrooge McDuck.

But there's a problem with that theory. Even though many oil companies are reporting record profits, many people forget just how expensive it is for energy companies to engage in the oil business.

The average net profit margin for the S&P Energy sector, according to figures from Thomson Baseline, is 9.7%. The average for the S&P 500 is 8.5%. So yes, energy companies are more profitable than many others...but not by an inordinate amount.

http://money.cnn.com/2008/04/29/markets/thebuzz/

[FormerJrnyFan]

$4.05 for regular here on Long Island

I shopped around - and ended up paying $4.04 today -

[Andrew]

US$6+ here in Oz.

[Rick]

US$6+ here in Oz.

What kind of car do you drive?

[Moose]

$3.57 in the Atlantic City area, but that probably changed in the time I typed this.

[strangegrey]

Eh, it's not quite that simple, either...

Oil companies aren't as profitable as you think

I sometimes get the impression that people think oil executives hold clandestine meetings where they unilaterally decide to set the price of oil and gas in order to maximize their profits. After maniacally laughing about how they are gouging the American public, they then go swimming in pools of gold ala Scrooge McDuck.

But there's a problem with that theory. Even though many oil companies are reporting record profits, many people forget just how expensive it is for energy companies to engage in the oil business.

The average net profit margin for the S&P Energy sector, according to figures from Thomson Baseline, is 9.7%. The average for the S&P 500 is 8.5%. So yes, energy companies are more profitable than many others...but not by an inordinate amount.

http://money.cnn.com/2008/04/29/markets/thebuzz/

Yes it is. We've been down this road here before...and you weren't able to make your point then and you can't now.

You cant have your cake and eat it too...if you want to cite a "simple" net profit margin ratio as your big point, you can't turn around and say that it's not so simple when the net profit margin is explained away.


The one major factor that Financial Ratios are famous for eliminating is the scale. That's what they're designed for, to make companies financially comparable, provided you are discussing corporations in like industries.

By trying to use the net profit margin to explain that oil companies dont make that much money is pretty sad. I can show you several oil companys in the same sector, that make significantly different amounts of net income. Yet their net profit margins are VERY close.

The cost of goods doesnt matter either. So what, OIL is expensive to process. It's a fact of the industry. There are plenty of industry's out there with significant cogs as well. It doesn't matter.


Also, to bring in the suggestion that there are secret meetings where managers meet to plan profits? Are you a college student or do you just still think like one. Because these secret meetings happen all of the time...in every industry...in every country. Call them board meetings, strategy sessions...whatever you want. But the name of the game with ANY company is profit....as much as possible.

The problem I have with big oil, is not necessarily the executive board of say, exxon or BP. It's the factors that are surrounding the recent and dramatic increases of oil prices. If you think for one second, that Bush's efforts to deregulate oil futures, drive down the value of the dollar, invade iraq, etc Didn't play right into the pockets of his oil friends, you're living in a fantasy world.

All you need to do is take a look at the financial statements of, say, an Exxon or BP....and view the progression of sales revenue and net income from 2001-2008....and you'll be absolutely horrified. Then view the same companies from 1992-2000 and the progression isn't nearly as steep.

Trust me....they're doing things to gouge the average paying citizen....it's just not in the profit margin. It's in the total revenue stream. different method....same damn effect.

[Barb]

I paid $4.07 yesterday.

[Rick]

$3.57 in the Atlantic City area, but that probably changed in the time I typed this.

You guys get the twice a day price hike up there too? Fucking disgusting.

That avatar is hilarious.

[conversationpc]

By trying to use the net profit margin to explain that oil companies dont make that much money is pretty sad.

I never said they didn't make that much money.

Also, to bring in the suggestion that there are secret meetings where managers meet to plan profits? Are you a college student or do you just still think like one.

There's no need to insult if you want to keep the discussion civil. I kept my response clean. How about doing the same unless you really WANT to go down that road?

Because these secret meetings happen all of the time...in every industry...in every country. Call them board meetings, strategy sessions...whatever you want. But the name of the game with ANY company is profit....as much as possible.

I don't disagree with that.

The problem I have with big oil, is not necessarily the executive board of say, exxon or BP. It's the factors that are surrounding the recent and dramatic increases of oil prices. If you think for one second, that Bush's efforts to deregulate oil futures, drive down the value of the dollar, invade iraq, etc Didn't play right into the pockets of his oil friends, you're living in a fantasy world.

Once again, you're putting words in my mouth.

Trust me....they're doing things to gouge the average paying citizen....it's just not in the profit margin. It's in the total revenue stream. different method....same damn effect.

You're totally missing my point or I'm just not making it clear enough. What I'm TRYING to say is that the oil companies do not deserve as much blame as they get. Could they be colluding to drive prices up? Yeah, possibly but I don't think it plays as big a part as other factors. Everyone just always gets up in arms about BIG OIL...OOOOOH....AAAAAHHHHH. There are many other factors, some of which you mentioned that play a role.

[sadie65]

$3.79 here in Southern Illinois. And climbing I'm sure.

[strangegrey]

You're totally missing my point or I'm just not making it clear enough. What I'm TRYING to say is that the oil companies do not deserve as much blame as they get. Could they be colluding to drive prices up? Yeah, possibly but I don't think it plays as big a part as other factors. Everyone just always gets up in arms about BIG OIL...OOOOOH....AAAAAHHHHH. There are many other factors, some of which you mentioned that play a role.

While I see your point, I don't think they are as blameless as you may think. They most definitely strategize....do they collude? no...but they dont have to. They've benefited from external factors that have dropped right into their lap.....and some of those external factors happen to be caused by highly placed people sympathetic to their goals. They can drive prices up by limiting production, shifting schedules, delaying deliveries....then you add on the hedging, the foreign policy and the various other 'blunders' from Bush....and you get a perfect picture of massive profits...

[pinkfloyd1973]

$3.79 here in Southern Illinois. And climbing I'm sure.

Try living up here in Cook (Crook) County where it was $3.99 this morning and they tax you up the wazoo (and i'm not even IN Chicago)

Robin

[JrnyScarab]

Guess I'm not too bad off in New Hampshire. $3.65 - $3.75 range. Diesel's about $4.40 - $4.50!

[ForeverInBlue]

4.00 here, midwest.

[Maui Tom]

4.25 for reg....

[tj]

You're totally missing my point or I'm just not making it clear enough. What I'm TRYING to say is that the oil companies do not deserve as much blame as they get. Could they be colluding to drive prices up? Yeah, possibly but I don't think it plays as big a part as other factors. Everyone just always gets up in arms about BIG OIL...OOOOOH....AAAAAHHHHH. There are many other factors, some of which you mentioned that play a role.

While I see your point, I don't think they are as blameless as you may think. They most definitely strategize....do they collude? no...but they dont have to. They've benefited from external factors that have dropped right into their lap.....and some of those external factors happen to be caused by highly placed people sympathetic to their goals. They can drive prices up by limiting production, shifting schedules, delaying deliveries....then you add on the hedging, the foreign policy and the various other 'blunders' from Bush....and you get a perfect picture of massive profits...

Not trying to be a pain in the whatever, but help me understand then. If retail gas prices drop, yet the cost of goods sold stays the same, doesn't that mean that the profit margin decreases? If so, then to Dave's point, oil companies would not be earning as much as other industries. Their boards would be negligent in not seeking the maximum return for their shareholders.

I don't like high gas prices, diesel is over $4 per gallon here. That said, my divorced mother in law, whose retirement has been significantly invested in oil stocks for decades, is doing well at the moment. When anyone's 401K, mutual fund, stock,or whatever goes up in price, it is because someone else is paying that higher price. The raises you get in your job, the increase in your retirement account, all come from someone paying more than what was being paid when you started them.

[Lula]

85 octane is $3.40 - $3.50...

85? the lowest we go here is 87, then 89 and 93

[Rick]

You're totally missing my point or I'm just not making it clear enough. What I'm TRYING to say is that the oil companies do not deserve as much blame as they get. Could they be colluding to drive prices up? Yeah, possibly but I don't think it plays as big a part as other factors. Everyone just always gets up in arms about BIG OIL...OOOOOH....AAAAAHHHHH. There are many other factors, some of which you mentioned that play a role.

While I see your point, I don't think they are as blameless as you may think. They most definitely strategize....do they collude? no...but they dont have to. They've benefited from external factors that have dropped right into their lap.....and some of those external factors happen to be caused by highly placed people sympathetic to their goals. They can drive prices up by limiting production, shifting schedules, delaying deliveries....then you add on the hedging, the foreign policy and the various other 'blunders' from Bush....and you get a perfect picture of massive profits...

Not trying to be a pain in the whatever, but help me understand then. If retail gas prices drop, yet the cost of goods sold stays the same, doesn't that mean that the profit margin decreases? If so, then to Dave's point, oil companies would not be earning as much as other industries. Their boards would be negligent in not seeking the maximum return for their shareholders.

I don't like high gas prices, diesel is over $4 per gallon here. That said, my divorced mother in law, whose retirement has been significantly invested in oil stocks for decades, is doing well at the moment. When anyone's 401K, mutual fund, stock,or whatever goes up in price, it is because someone else is paying that higher price. The raises you get in your job, the increase in your retirement account, all come from someone paying more than what was being paid when you started them.

A 150% increase on the biggest staple in America is too much of a shock for an economy that isn't healthy already.