Why did gas go up ....
 

Why did gas go up .50/gal on STX?!?!?!  


islandjoan
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What the hell?! The price of regular jumped .50 overnight - from $2.99 to $3.49 (at Sunny Isle intersection)!!!!!!!

I found last week's DN article on the increase in Hovensa rack rates. Here is an excerpt:
Published: December 5, 2011

ST. CROIX - After two weeks of declining prices, the wholesale price of regular and premium gasoline at HOVENSA inched upward today, while the wholesale price of diesel fuel went down.

HOVENSA made the adjustments to its rack rates - the price of fuel purchased wholesale, directly from the refinery's truck loading station on St. Croix - today. The rack rates influence retail gasoline prices in the territory because independent gas station operators can buy their gasoline at the loading station, then resell it to their customers.

The refinery today raised the rack rates for regular and premium gasoline by 2 cents per gallon, while it lowered the rack rate for diesel fuel by 4 cents per gallon.

So Hovensa's rate goes up two cents and the gas stations raise their price by 50 cents?!!!!!!! Just had to vent there for a minute.

16 Replies
onthespot
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I don't know, but for some reason prices at the pump in California suddenly dropped about thirty cents a gallon last week. No one I talked to knows why.

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islandjoan
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Oh, and I did see today's article where regular gas is to increase by 5 cents this week. Still doesn't account for the 50 cent increase.

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OldTart
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It's $4.50+ a gallon of regular today on St Thomas, Parting with all that money was painful but I'm just happy I don't have a long stateside commute every day!

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STXBob
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On STX today, One Love is still $3.159, and 5 Corners is still $3.079, same as a few days ago.

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Jumbie
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islandjoan, I have stopped trying to make sense of the gasoline pricing--by both Hovensa and the gas station owners.

I had wondered the same thing regarding those Sunny Isle stations going from $2.99 to $3.49, an increase $.50/gallon. They increase last Saturday morning.The stations STX Bob pointed out are still what they were the past couple of weeks and Farms (intersection of Midland Road & 75) is still at $3.15.

Jumbie -STX

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Novanut
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Island Economics; Gotta luv it... Still waiting for the senators names and the fed report on the search of Williams office. :} Ought to be interesting. Bets on the outcome(s)?

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onthespot
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Oh, and I did see today's article where regular gas is to increase by 5 cents this week. Still doesn't account for the 50 cent increase.

Someone "accidently" moved the decimal point, maybe? D'oh!!!

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islandjoan
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Yeah, maybe the decimal point was moved...but the first increase was after the rack rate went up 2 cents. Since the new 5 cent increase hadn't taken effect yet, the 50 cent increase still isn't justified.

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OldTart
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Someone might pick up the 'phone and call the Department of Consumer and Licensing Affairs to ask about the disparity of the increase between Hovensa and the gas stations.

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islandjoan
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I called DCLA a few months ago. The guy I spoke with told me that legally they cannot regulate the gas stations.

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beachy
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the conversation and various discussions about the price of gasoline goes round and round, over and over, on various threads through the years...but so many folks seem to miss the issue. The government, DCLA, etc have no power over the retail price of gasoline, any more than they do over the price of a sweater in the store or a can of soup in the market, or a dinner in a restaurant. With the exception of times such as after storms etc when there is a government emergency in place, each business in a capitalist free enterprise society can do what it likes on pricing, and the customer can in turn purchase or not. If the rack on gas goes up a nickel, it would be nice if the stations absorbed the increase, but we know that doesn't happen. If, as now, the rack goes up a nickel and the stations raise the price fifty cents, there's nothing but the pressure of a free market system to stop them. If one station did not increase and everyone purchased from that station and let the others sit, you can bet the other prices would eventually come down unless the 'holdout' station was 'persuaded' to raise the price along with the others. (Capitol gas on the northshore road was one who offered a lower price for a while, some years back, and it was always crowded). For whatever reason, folks on stx don't organize on this issue, and many seem to just whine about how the government should do something, and then they go out and patronize the thieves in the stations who are making a fortune in profits off the consumers. Seems to me this would be a much easier issue to get consumer-friendly results quickly on, if a little organization and education took place, but instead folks aim at things like WAPA where any positive result would be years away at best...not that wapa isn't deserving of attention, like a forensic audit to begin with, but seems like community organization against the gasoline prices could actually get positive results.

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aussie
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the conversation and various discussions about the price of gasoline goes round and round, over and over, on various threads through the years...but so many folks seem to miss the issue. The government, DCLA, etc have no power over the retail price of gasoline, any more than they do over the price of a sweater in the store or a can of soup in the market, or a dinner in a restaurant. With the exception of times such as after storms etc when there is a government emergency in place, each business in a capitalist free enterprise society can do what it likes on pricing, and the customer can in turn purchase or not. If the rack on gas goes up a nickel, it would be nice if the stations absorbed the increase, but we know that doesn't happen. If, as now, the rack goes up a nickel and the stations raise the price fifty cents, there's nothing but the pressure of a free market system to stop them. If one station did not increase and everyone purchased from that station and let the others sit, you can bet the other prices would eventually come down unless the 'holdout' station was 'persuaded' to raise the price along with the others. (Capitol gas on the northshore road was one who offered a lower price for a while, some years back, and it was always crowded). For whatever reason, folks on stx don't organize on this issue, and many seem to just whine about how the government should do something, and then they go out and patronize the thieves in the stations who are making a fortune in profits off the consumers. Seems to me this would be a much easier issue to get consumer-friendly results quickly on, if a little organization and education took place, but instead folks aim at things like WAPA where any positive result would be years away at best...not that wapa isn't deserving of attention, like a forensic audit to begin with, but seems like community organization against the gasoline prices could actually get positive results.

All of the gas stations on St Croix are owned by one of two families except for how many? 2? 3?

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beachy
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All of the gas stations on St Croix are owned by one of two families except for how many? 2? 3?

Interesting question...there's the one in Cotton valley, and Budget near Metro Motors. There were the Lionel stations, if he still owns the one by Golden Rock Pueblo. I think the Welcome station across from Schooner Bay. Then the group that Joe Jaber used to own...I don't know what happened to all of them; I know one was being discussed as part of the settlement of a lawsuit against him for something unrelated to the gas stations... he had at least 4 that I can think of, but I don't know who the owners are now....and I have no clue about the rest of the stations on stx.

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Novanut
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All the stations need now is a mask and a gun. Oh wait. That's their pump prices. Never mind.

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stcroixboy
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I don't know, but for some reason prices at the pump in California suddenly dropped about thirty cents a gallon last week. No one I talked to knows why.

I just passed by ARCO in San Diego and it was $3.39 per gallon.
couple months back in the same area it was $3.99 per gallon.
cheapest 87 octane for the rental car as usual.

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saucey
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I have had many a conversations with gas station owners. Very interesting. Did you know, or rather, would you BELIEVE, that there is a system in place to keep the prices on the high end??? That 'system' is more commonly called 'hose cutting'. Simply explained: if a station does not keep a high-end margin/price on the gas price, the station who undersells will have their pump hoses cut, then they can't sell at all, not until the parts come in. We have a gas Mafia! I kid you not.

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