Diesel, heating oil shortage this winter?

[Darryl&Rita]

https://oilprice.com/Latest-Energy-News/World-News/A-Diesel-Shortage-Is-Spreading-Across-The-US.html

[Second Chance]

3 hours ago, Kirk W said:

Current prices at Murphy Oil down at our nearest Walmart are $4.63 for diesel and $2.99 for regular gasoline.  That is in Mesquite, TX. GasBuddy says that diesel in this area (Dallas suburb) ranges from $4.63 to $4.89. I suspect that a major part of the difference is state tax. State tax here is 20₵ per gallon on both gasoline and diesel.

Kirk,

I was surprised at the wide range in fuel tax rates when I went looking - it explains a lot of what we saw on our big trip this spring and on our trip from MD to SC and back this past week. I was also surprised to see that GA has no fuel tax on gas or diesel any more (used to be cheaper to cross the river to SC when we lived in GA). PA seems to be the worst on a quick scan:

https://igentax.com/gas-tax-state-2/

Rob

 

[pjstough]

How does everyone believe that retail prices for gasoline and diesel fuel are calculated? Do you believe that retailers add up their cost, including taxes, and then add a flat rate or a percentage rate to those costs to come up with retail price, or do you believe that retailers set their prices as to maximize profits(what the market will bear), or do they use other methods to determine their retain price?

[ARGO]

On an HDT, cut the side tank open & put in a partition. Run dyed fuel .

When I hauled meat out of the midwest, we had the return line from the reefer hooked into the engine suction................................

And BIG reefer tanks  

[Chad Heiser]

55 minutes ago, ARGO said:

On an HDT, cut the side tank open & put in a partition. Run dyed fuel .

When I hauled meat out of the midwest, we had the return line from the reefer hooked into the engine suction................................

And BIG reefer tanks  

And big fines potentially if caught doing that over the road.  😮

[rickeieio]

I'll take the truck to Costco and fill tomorrow, for $4.45/gal.  Yeah, it hurts to fill 240 gal/ tanks, but it doesn't hurt often.

Cost difference between gas/diesel here is running about $1.50.  Makes sense, as diesel has way more btu's than gas.  Fuel delivered to the farm is over $5.00 around here, even buying 1,000 gallons at a time.  Why pay more to risk getting caught?

[Kirk W]

5 hours ago, pjstough said:

Do you believe that retailers add up their cost, including taxes, and then add a flat rate or a percentage rate to those costs to come up with retail price, or do you believe that retailers set their prices as to maximize profits(what the market will bear), or do they use other methods to determine their retain price?

I suspect that there is more to it than any of us know. But tell us what do you believe? What would you think that the oil company shareholders would have them do?

Edited October 26, 2022 by Kirk W

[pjstough]

1 hour ago, Kirk W said:

I suspect that there is more to it than any of us know. But tell us what do you believe? What would you think that the oil company shareholders would have them do?

To me, any well-run business should set their retail price at a point that will maximize profits.

[ms60ocb]

1 hour ago, pjstough said:

To me, any well-run business should set their retail price at a point that will maximize profits.

Back in my younger days I was enrolled in a management course. We were a given a couple problems and profits and growth were wining goals. It was a little difference than oil companies. What I learned if one gets greedy with profits, the competition gets more inventory sold, the stock holders are happy (a small business may be able to pay down a loan). Business is slow you advertize, spend to much that comes from the profits but you instant results. You will spend money on engineering which will give rewards later if you have a better product or can stream-line a process cutting cost.

BUTTTTT if have a problem selling your product say milk, inventory spoils, and that is lost money and way to bankruptcy. If the liability is low,  the management wins when inventory matches sales and true costs are known, The board will be happy.  Make to much profit and not return part to the business the share holders and taxes get it.

I don't believe the Profits are exceedly large as some say. but they maybe like the squirrel gather nuts, getting ready for the storm

Clay

 

[Vladimir]

My wife inherited BP oil stock at $39 dollars a share back in the late 90's.

Today, BP closed at $32.31 dollars a share.  No splits in all those years.  

So much for the "obscene" profits for the oil company shareholders.

[pjstough]

11 minutes ago, Vladimir said:

My wife inherited BP oil stock at $39 dollars a share back in the late 90's.

Today, BP closed at $32.31 dollars a share.  No splits in all those years.  

So much for the "obscene" profits for the oil company shareholders.

Does BP pay dividends?

Looks like they are having a pretty good year.
https://fortune.com/2022/08/02/bp-earnings-by-the-numbers-profit-dividend-payouts-share-buybacks-cost-of-living-crisis-backlash/

 

Edited October 27, 2022 by pjstough

[bruce t]

In many/most cases the fuel price is set by HQ and not the individual station. Fuel "cartel" could be at work but no one has ever been able to prove it. Many/most station make their profit out of the chocolate bar you pick up at the counter and not the fuel.

You would be fooling yourself if you thought there was a single answer to fuel prices. 

[Darryl&Rita]

28 minutes ago, Vladimir said:

My wife inherited BP oil stock at $39 dollars a share back in the late 90's.

Today, BP closed at $32.31 dollars a share.  No splits in all those years.  

So much for the "obscene" profits for the oil company shareholders.

Deepwater Horizon ring a bell? It nearly sank BP, and it's echoes continue to affct their share price. Look at the oil industry overall.