Gas Prices-Why in Mainland Dropping -but Still Going Up On St Croix
My husband went to RoadRunner thinking he would get the 10% after I told him about this thread. Only got 5% (well over a week ago) off the $4.14, while the station next door was still at $3.95. We had our little chuckle over our .01 per gallon savings.
Also, be aware, the discount is only on $10 increments. If you spend $18, you only get .50 (not .90) If you go ahead and spend $20, then you get the whole $1.00.
Yes, sadly Road Runner went to 5% this week.
The one factor I know of impacting a % discount for gas a vendor charging is the final cost per gallon the vendor charges and the amount of customers using the credit card to charge the gas. .
The average in the states for gas sales on credit card was 70% a few years ago.
When you sell gas for say 3.00 gallon, and someone charges it, you pay an average of 2% to the credit card company. 2% of $3.00 is .06 cent.
When you sell a gallon of gas for $4.00, 2% is .08. Someone has to lose .02 gallon in profit.
I still take the 5% discount for veterans----rather have 10%, but 5% discount helps to feel I am not getting completely SCREWED when I go get gas---just feel mostly SCREWED by someone reaping $$$$$$$$$$$$$
Roadrunner (next to Avis building) doesn't take credit cards -only cash. So far as I'm concerned the new management at this gas station can take their 5% discount and shove it I'm sticking with Shauma (Sunny Isle) who takes cc & gives 10% off pump price..
I agree with the price fixing concept.
On STX, if you are a station owner, you will have to sell at a certain price or your pump hoses will get cut. Go ask a few stations, and check out how many stations we have with old decrepid pumps, but have new hoses. Ask a station owner you know, see what they tell you. It's sad but true, we have our very own little "oil mafia" on island. Check it out. The governor knows about this too, but has not done anything to fix it. Hmmm.
Jumbie, Yes, your freedom of choice to stick with Shauma gas station for a 10% discount, as it appears the better choice for you. As a two time combat veteran, Shauma does not offer a discount for veterans, firefighters, teachers and or police like Roadrunners---Shauma offers only to seniors who deserve and benefit from a 10% discount(my step dad being one of them).
Thank you Roadrunners and Shauma for the discount to the seniors who reside in ST Croix-----and KUDOs to Roadrunners and Plaza Xtra Markets for expanding their discounts not just to seniors, but thousands of veterans who reside in the Virgin Islands. We veterans appreciate the THANK YOU gesture of the discount for our service to our country.THANK YOU
Gas prices in the Chicago suburbs (reported as being among the highest in the nation just a few weeks ago) were at $3.86/gal yesterday.
It's hovering around $4.35 (87 octane) in the Chicago metro area right now. I can't wait to get out of this place! It's more expensive to live in Chicago than it is the VI.
I agree that veterans should get discounts as they have served in the armed forces so I agree any station that gives any kind of discount for veterans, etc., is a good thing.
FYI to anyone - I was driving west from LaReine today on Queen Mary and the gas station between LaReine & Plaza West had regular unleaded gas for $3.89/gallon which is more than 5% off the $4.14. I think this station is in Upper Love estate. Some other stations past Plaza West toward Frederiksted had regular unleaded for $3.95 which is almost 5% less than $4.14 @ Road Runner.
In todays on-line Source, Hovensa announced reduction in rack rates. According to the announcement, the price for a gallon of regular gasoline has dropped 33 cents, or 9.24 percent, from $3.57 to $3.24. So once a station gets a new load of gasoline, pump prices should come down.
I stopped yesterday while driving a car north from Miami to New York at a non-franchise, family owned HESS gas station just outside Garner, North Carolina area, on an exit from I-95, in an area where you might thing gas to be expensice...paid $3.59 including all state and federal taxes...that is below the purchase price for the wholesale buyer in St Croix...economics is a strange question.
So...since the gas stations only make $0.35/gallon on STX, the delivery companies get another $0.07 and that has to cover their million dollar insurance as required by HOVENSA, looks like it must be the refinery who is making the lions share of the profits.
Got to think that since they get the poor over sulfur crude, and I was told by agents of management at HOVENSA that it is about $35-40 per barrel...which it inturn yields 19 gallons of gasoline per barrel, at a spread cost of about $25/bbl to refine (again per HOVENSA engineering)...their cost to make only 19 gallons of gas...the balance becomes propane, butane, sulfure powder, and all those other "tanes that are all sold and marketed around the world...the refined barrel of crude is about $60.00, a little less than half is gas, so an average gallon of gas should be calculated at about $1.58 cost prior to corporate mark ups...remember that all the insurances, operation cost, overhead, etc., is precosted in the refining cost to produce! The only item left to add to the cost before profit is shipping and we already know that is $0.07/gallon on the island.
So my guess is that there is about $2.00/gallon or slightly less with the deduction of VI taxes, profit to HOVENSA for each gallon of gas sold on St Croix...further guess they are probably doing a gross profit of about $1.25 to $1.50 to the stations in the states...other than their own!!!
I did see another HESS station with $3.43 as their sign price!!! Just how can they do that????
If anybody has any better detailed costs of production for the cracking of petroleum products...I sure would love to see some other production costs. Either way, the refineries are making big bucks, all of them..