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Gas prices "really" going down

 
East End Doug
(@east_end_doug)
Advanced Member

I talk to friends and family in the states and they have seen a .25 to .30 cent per gallon drop in the last two weeks. I know this a old subject but when are we going to get even a small reduction. I'm riding my Harley more and more, rain or not and still can't make a dent in my gasoline bill. I guess just needed to vent after putting so much money in other peoples pocket.

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Topic starter Posted : November 13, 2013 7:25 pm
JulieKay
(@JulieKay)
Trusted Member

$3.17 in Florida right now.

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Posted : November 13, 2013 7:25 pm
LiquidFluoride
(@LiquidFluoride)
Trusted Member

I talk to friends and family in the states and they have seen a .25 to .30 cent per gallon drop in the last two weeks. I know this a old subject but when are we going to get even a small reduction. I'm riding my Harley more and more, rain or not and still can't make a dent in my gasoline bill. I guess just needed to vent after putting so much money in other peoples pocket.

my electric bike costs $ 2.50 cents to go 70 miles... and charges mostly at work.... just sayin

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Posted : November 13, 2013 7:40 pm
Alana33
(@alana33)
Expert

$4.58 in STT rightnow still at less expensive station while many states are seeing BELOW $3.00

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Posted : November 13, 2013 8:29 pm
AirDan
(@AirDan)
Advanced Member

I just came back down from Ohio yesterday. It was $2.81 by my house Monday morning. Still $3.97 on STX (td)

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Posted : November 14, 2013 2:01 am
Jumbie
(@ohiojumbie-2)
Trusted Member

We lived on STX for almost 7 years and the retail gasoline prices never conincided with what went on in the U.S. Since all the gas stations on STX are independent owner type, they can mark up the wholesale price (price they pay Hovensa at the loading rack) just about any amount they want to.

So if the price is $3.97 on STX for regular unleaded - the markup is almost a $1.00/gallon. Can you say "gouging"?

Wholesale rack rate for gasoline (Hovensa) is adjusted weekly, so according to 11/11/13 VI Daily News here's the latest buy prices.

independent gas station operators in the territory now are paying $2.98 per gallon for regular gasoline, $3.46 per gallon for premium gasoline, and $3.44 per gallon for diesel fuel when they buy their fuel wholesale at HOVENSA. Those prices include the 14-cents-per-gallon tax that the refinery collects for the government.

Jumbie

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Posted : November 14, 2013 11:52 am
sunshinefun
(@sunshinefun)
Trusted Member

Local gas retailer are not "gouging" as Jumbie suggests. The cost of doing business in the territory is much higher than the mainland and Jumbie hasn't factored in the hidden taxes and fees that gas retailers must pay. I'm no gas retailer but gas prices in the VI are still way cheaper than most other places in the world where gas is well over $6.00 a gallon. Stop your whining.

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Posted : November 14, 2013 12:15 pm
Rowdy802
(@Rowdy802)
Trusted Member

Well, there is no refinery, no fuel production... Hovensa has to purchase it and resell it so, it will never be close to the prices of the USA as it used to be...

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Posted : November 14, 2013 1:03 pm
Jumbie
(@ohiojumbie-2)
Trusted Member

I'm not whining sunshinefun, just stating what I think is reality on STX and that is there has always been a penchant for gouging and there always will be.. I 'm sure that WAPA's continued escalting electric costs have caused the station owners to most likely increase their markup on their sell prices. It used to be capped $.50/gallon markup but DeJongh's administration removed that cap several years ago. Also I would guess they are paying around $.10/gallon to have a tanker deliver a load of gasoline to the station.

The current price of $2.98/gallon for regular, which is adjusted each Monday, already includes the $.14/gallon tax imposed by VI gov't. so all taxes and Hovensa fees to get the gasoline on island have already been factored into that $2.98. Add another $.10/gallon for transport to the station and what I'm saying is, the markup is almost a $.90/gallon if $3.97 is a sell price.

As a comparison, when we were in the Bahama's this past December for a short stay, the price of unleaded regular was in the $5.50-$6.00/gallon range. So STX is a bargain at under $4.00/gallon

Bottom line -there always is a premium price to pay for living on an island. We did that for 7 years and don't have any regrets.

Jumbie

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Posted : November 14, 2013 7:31 pm
JulieKay
(@JulieKay)
Trusted Member

I also wonder what the cost of WAPA is for running the gas pumps at a gas station. I imagine that isn't particularly cheap, and is part of the overhead of the gas station, in addition to lights and other electrical usage.

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Posted : November 14, 2013 7:41 pm
speee1dy
(@speee1dy)
Expert

it was 2.99 in arizona yesterday

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Posted : November 14, 2013 8:28 pm
SkysTheLimit
(@SkysTheLimit)
Trusted Member

I have no problem with the stations making a profit. But when the rack rate falls and they don't lower the price it's a ripoff. Period!

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Posted : November 19, 2013 6:40 pm
loucypher
(@loucypher)
Advanced Member

Gas Works STT has a monthly electric bill of about 8k for the whole business. It's difficult to say how much of that is pumping gas. The electric motors used to pump the fuel consume alot. Then there's the rest of the system like the pump displays, card readers and computers. It adds up fast. There isn't a large profit on gas like alot of people think.

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Posted : November 19, 2013 9:01 pm
gonetropo
(@gonetropo)
Advanced Member

Just filled up here in Greenville, SC for $2.86.

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Posted : November 20, 2013 9:14 am
Alana33
(@alana33)
Expert

Considering we pay, at least, $1.00 more for each and every gallon, I am sure there is profits for the gas retailers.

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Posted : November 20, 2013 12:04 pm
caribstx
(@caribstx)
Trusted Member

Of course there is some profit in selling gas but these operators are not making a killing as some would suggest.

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Posted : November 20, 2013 12:16 pm
East Ender
(@east-ender)
Expert

Gas Works STT has a monthly electric bill of about 8k for the whole business.

I have a feeling their bill has been reduced greatly...;)

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Posted : November 20, 2013 1:16 pm
loucypher
(@loucypher)
Advanced Member

Considering we pay, at least, $1.00 more for each and every gallon, I am sure there is profits for the gas retailers.

I managed a gas station for 10 years in the 90's. I ordered the gas loads. Back then on a gallon of premium you made about 25 cents. A gallon of regular got you 5 to 8 cents. Guess what we sold more of. Yup. Regular 10 to 1. That's when things were good. You can't even pay your gas attendants salary on that. That's why almost every gas station has a convenience store now. The gas draws customers to the store . That's where your profits are. Not the gas.
I don't know where you get a dollar from.

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Posted : November 20, 2013 2:13 pm
loucypher
(@loucypher)
Advanced Member

Gas Works STT has a monthly electric bill of about 8k for the whole business.

I have a feeling their bill has been reduced greatly...;)

I know. They had a huge solar system installed. Even if their bill was cut in half (and it probably wasn't) do you know how much product they have to sell to pay that? I don't know why everyone thinks solar is a miracle.

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Posted : November 20, 2013 2:16 pm
STXBob
(@STXBob)
Trusted Member

Considering we pay, at least, $1.00 more for each and every gallon, I am sure there is profits for the gas retailers.

I managed a gas station for 10 years in the 90's. I ordered the gas loads. Back then on a gallon of premium you made about 25 cents. A gallon of regular got you 5 to 8 cents. Guess what we sold more of. Yup. Regular 10 to 1. That's when things were good. You can't even pay your gas attendants salary on that. That's why almost every gas station has a convenience store now. The gas draws customers to the store . That's where your profits are. Not the gas.
I don't know where you get a dollar from.

For regular gasoline on STX, retail $3.97 minus wholesale $3.00 equals $0.97, or about $1.

From http://virginislandsdailynews.com/news/hovensa-raises-wholesale-price-of-regular-and-premium-gasoline-1.1587381 :

"ST. CROIX - Wholesale prices for regular and premium gasoline inched upward today as HOVENSA adjusted its rack rates.

The changes increased the rack rate - the price of fuel purchased wholesale at the HOVENSA truck-loading station on St. Croix - for regular and premium gasoline by 2 cents per gallon. The price of diesel fuel did not change.

Under today's adjustment, independent gas station operators in the territory now are paying $3.00 per gallon for regular gasoline, $3.48 per gallon for premium gasoline, and $3.44 per gallon for diesel fuel when they buy their fuel wholesale at HOVENSA. Those prices include the 14-cents-per-gallon tax that the refinery collects for the government."

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Posted : November 20, 2013 2:41 pm
loucypher
(@loucypher)
Advanced Member

Considering we pay, at least, $1.00 more for each and every gallon, I am sure there is profits for the gas retailers.

I managed a gas station for 10 years in the 90's. I ordered the gas loads. Back then on a gallon of premium you made about 25 cents. A gallon of regular got you 5 to 8 cents. Guess what we sold more of. Yup. Regular 10 to 1. That's when things were good. You can't even pay your gas attendants salary on that. That's why almost every gas station has a convenience store now. The gas draws customers to the store . That's where your profits are. Not the gas.
I don't know where you get a dollar from.

For regular gasoline on STX, retail $3.97 minus wholesale $3.00 equals $0.97, or about $1.

From http://virginislandsdailynews.com/news/hovensa-raises-wholesale-price-of-regular-and-premium-gasoline-1.1587381 :

"ST. CROIX - Wholesale prices for regular and premium gasoline inched upward today as HOVENSA adjusted its rack rates.

The changes increased the rack rate - the price of fuel purchased wholesale at the HOVENSA truck-loading station on St. Croix - for regular and premium gasoline by 2 cents per gallon. The price of diesel fuel did not change.

Under today's adjustment, independent gas station operators in the territory now are paying $3.00 per gallon for regular gasoline, $3.48 per gallon for premium gasoline, and $3.44 per gallon for diesel fuel when they buy their fuel wholesale at HOVENSA. Those prices include the 14-cents-per-gallon tax that the refinery collects for the government."

O.K. My bad. I forgot the taxes make a huge difference. Even at 97 cents profit Gas Works would have to pump over 8000 gallons a month just to break even on the electric bill.
Do you know how many gallons these places are pumping a month? Let's not forget he still has to pay for the solar system. The electric ain't free yet.

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Posted : November 20, 2013 3:10 pm
Tiberius
(@Tiberius)
Advanced Member

Considering we pay, at least, $1.00 more for each and every gallon, I am sure there is profits for the gas retailers.

I managed a gas station for 10 years in the 90's. I ordered the gas loads. Back then on a gallon of premium you made about 25 cents. A gallon of regular got you 5 to 8 cents. Guess what we sold more of. Yup. Regular 10 to 1. That's when things were good. You can't even pay your gas attendants salary on that. That's why almost every gas station has a convenience store now. The gas draws customers to the store . That's where your profits are. Not the gas.
I don't know where you get a dollar from.

For regular gasoline on STX, retail $3.97 minus wholesale $3.00 equals $0.97, or about $1.

From http://virginislandsdailynews.com/news/hovensa-raises-wholesale-price-of-regular-and-premium-gasoline-1.1587381 :

"ST. CROIX - Wholesale prices for regular and premium gasoline inched upward today as HOVENSA adjusted its rack rates.

The changes increased the rack rate - the price of fuel purchased wholesale at the HOVENSA truck-loading station on St. Croix - for regular and premium gasoline by 2 cents per gallon. The price of diesel fuel did not change.

Under today's adjustment, independent gas station operators in the territory now are paying $3.00 per gallon for regular gasoline, $3.48 per gallon for premium gasoline, and $3.44 per gallon for diesel fuel when they buy their fuel wholesale at HOVENSA. Those prices include the 14-cents-per-gallon tax that the refinery collects for the government."

What about transportation costs? That may be what they're paying at the rack but how much to get it to the retailer?

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Posted : November 20, 2013 3:44 pm
STXBob
(@STXBob)
Trusted Member

It wasn't long ago that STX gas stations were selling at "only" 50 cents per gallon above wholesale, and we thought that was a rip-off.

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Posted : November 20, 2013 6:36 pm
loucypher
(@loucypher)
Advanced Member

Yeah. Really. How much is it to ship those tankers on barges from STX to STT? And then trucking the gas from the port to the retailer.

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Posted : November 20, 2013 9:07 pm
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