Car Forum / Toyota / Toyota Cars / June 2007
Do Gas Stations Make Enough?
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GO Mavs - 22 Jun 2007 23:51 GMT I wonder, do gas stations make enough to actually care to jimmy rig the machines? I heard they (the store owner) only make pennies on the gallon as it is and that the true profits shoot up to the gas companies.
In otherwords the gas provided by the gas station is nothing more than a luxury and a lure to get the customer to buy car washes, oil, car products, and refreshments...
Ofcourse, I guess it matters if the station is owned by the gas company.
Jeff - 23 Jun 2007 00:01 GMT > I wonder, do gas stations make enough to actually care to jimmy rig the > machines? Do you think that if people could sell 4.5 gallon of gas and charge for 5.0 gallons, that there aren't at least some who will do this?
Some people will lie and cheat however they can to make more money.
> I heard they (the store owner) only make pennies on the gallon as > it is and that the true profits shoot up to the gas companies. It is the refineries who are pumping the money in. They pay for oil based on the crude oil rate, but sell based on the local market conditions, which provides for a tidy profit.
> In otherwords the gas provided by the gas station is nothing more than a > luxury and a lure to get the customer to buy car washes, oil, car products, > and refreshments... Well, yes.
But, if the gas station is owned by an oil company...
> Ofcourse, I guess it matters if the station is owned by the gas company. And when gas stations are owned by oil companies, I am sure they offer really low rates on soda, snacks and milk, compared to grocery stores.... ;-)
GO Mavs - 23 Jun 2007 01:26 GMT >> I wonder, do gas stations make enough to actually care to jimmy rig the >> machines? > > Do you think that if people could sell 4.5 gallon of gas and charge for > 5.0 gallons, that there aren't at least some who will do this? Sure, if they are charging 5.0 and selling 4.5 then they are making a buck 50 more for that fill up compared to the pennies that they are making per gallon. However, isnt that a tad bit noticable, not just for the driver but for the company filling the tanks? Eventually that is going to make itself widely known. Thats not like skimping pennies on the dollar. Thats an obvious theft.
> Some people will lie and cheat however they can to make more money. > [quoted text clipped - 18 lines] > really low rates on soda, snacks and milk, compared to grocery stores.... > ;-) Art - 23 Jun 2007 00:36 GMT I think it was in California where crooks figured out that to test the accuracy of gas pumps the state pumped out exactly 5 gallons and measured it for accuracy. Voila..... they designed a chip that ripped you off by running fast as you first pumped but slowed down to be accurate at 5 gallons, and then started running fast again. They got caught because they were so greedy you could actually see the speed changes of the numbers on the pump as they flashed by.
>I wonder, do gas stations make enough to actually care to jimmy rig the >machines? I heard they (the store owner) only make pennies on the gallon as [quoted text clipped - 5 lines] > > Ofcourse, I guess it matters if the station is owned by the gas company. GO Mavs - 23 Jun 2007 01:27 GMT >I think it was in California where crooks figured out that to test the >accuracy of gas pumps the state pumped out exactly 5 gallons and measured [quoted text clipped - 3 lines] >were so greedy you could actually see the speed changes of the numbers on >the pump as they flashed by. I don't doubt that they got caught. Some things are a bit obvious.
Mike Hunter - 23 Jun 2007 20:22 GMT If one could "see the numbers go by" that must have been when gas was 35C a gallon. At $3 they whiz by too fast LOL
mike
>>I think it was in California where crooks figured out that to test the >>accuracy of gas pumps the state pumped out exactly 5 gallons and measured [quoted text clipped - 5 lines] > > I don't doubt that they got caught. Some things are a bit obvious. Jeff - 23 Jun 2007 22:10 GMT > If one could "see the numbers go by" that must have been when gas was 35C a > gallon. At $3 they whiz by too fast LOL I can see the numbers go by. They go by at about the same rate as when gas was 35 cents a gallon, except that the decimal point is a little farther than before.
I guess having a younger and better-functioning brain helps. And being a resident of planet Earth.
Jeff
> mike > [quoted text clipped - 6 lines] >>> numbers on the pump as they flashed by. >> I don't doubt that they got caught. Some things are a bit obvious. Mike Hunter - 24 Jun 2007 01:10 GMT I guess that leave you out of the picture, but you of course are free to believe whatever you choose. LOL
mike
>> If one could "see the numbers go by" that must have been when gas was 35C >> a gallon. At $3 they whiz by too fast LOL [quoted text clipped - 18 lines] >>>> changes of the numbers on the pump as they flashed by. >>> I don't doubt that they got caught. Some things are a bit obvious. Jeff - 24 Jun 2007 03:51 GMT > I guess that leave you out of the picture, but you of course are free to > believe whatever you choose. LOL Last I checked, $0.35 x 10 = $3.50. The numbers on the purchase price would go up a little slower (@ $3.00 /gal than $0.35 per gallon), but the decimal point would be one place farther to the right.
But, but the indicator for the volume would go up at the same speed, regardless of whether the price is $0.35 or $3.50 or $1.25.
Of course, in the old days, the indicator for the price and the volume was mechanical, not digital.
I am sorry that your brain doesn't work fast. I would say anymore, but I have no reason to believe that your brain ever worked well. It certainly doesn't do so today.
Jeff
> mike > [quoted text clipped - 19 lines] >>>>> changes of the numbers on the pump as they flashed by. >>>> I don't doubt that they got caught. Some things are a bit obvious. Jeff Strickland - 23 Jun 2007 03:34 GMT >I wonder, do gas stations make enough to actually care to jimmy rig the >machines? I heard they (the store owner) only make pennies on the gallon as [quoted text clipped - 5 lines] > > Ofcourse, I guess it matters if the station is owned by the gas company. What rock do you live under?
I used to pump gas as a kid, and the profit for a gas station owner was not in the gas, it was in the service bay. the gas kept the lights on and maybe paid the wages. The money was in the services that we did.
Today, the money is in the hot dogs and potato chips ...
Gas just gets them in the door, the money is in the non-gas products they buy.
witfal - 23 Jun 2007 03:38 GMT >> I wonder, do gas stations make enough to actually care to jimmy rig the >> machines? I heard they (the store owner) only make pennies on the [quoted text clipped - 15 lines] > > Gas just gets them in the door, the money is in the non-gas products they buy. A typical independent makes between two and five cents per gallon profit. Factor in maintenance on pumps, dispensers, and hanging hardware, and he's lucky to break even. An acquaintance of mine owns a mini-mart independent station, and sells gas at a 5 cent per gallon loss. He has to make up for it with, as you say, non-gas products.
Anger at owners is completely misdirected.
Jeff - 23 Jun 2007 04:20 GMT >>> I wonder, do gas stations make enough to actually care to jimmy rig >>> the machines? I heard they (the store owner) only make pennies on the [quoted text clipped - 26 lines] > non-gas > products. Yeap, with those 3% or so credit card fees you sell at a loss.
> Anger at owners is completely misdirected. Mike Hunter - 23 Jun 2007 20:18 GMT The entities that make the largest 'profit' on a gallon of fuel are the federal and state governments. Most states make more per gallon than does the oil company that made the gasoline
LOL
mike
"Jeff" <kidsdoc2000@hotmail.com> wrote in message news:9k0fi.257
>> A typical independent makes between two and five cents per gallon profit. >> Factor in maintenance on pumps, dispensers, and hanging hardware, and >> he's lucky to break even.
>> An acquaintance of mine owns a mini-mart independent station, and sells >> gas [quoted text clipped - 4 lines] > >> Anger at owners is completely misdirected. witfal - 23 Jun 2007 21:24 GMT > The entities that make the largest 'profit' on a gallon of fuel are the > federal and state governments. Most states make more per gallon than does > the oil company that made the gasoline Which is exactly why the phonies on the left, who scream about prices, have no true interest in reducing prices.
They're fat and happy with all the FET with which to play. ---------------------------------------------------------------------------
"I contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle." - Winston Churchill
"A liberal is someone with a great debt to his fellow man, and proposes to pay it off with your money." - unknown
"In general, the art of government consists of taking as much money as possible from one party of the citizens to give to the other" - Voltaire
"What this country needs are more unemployed politicians." - Edward Langley
Jeff - 23 Jun 2007 22:13 GMT >> The entities that make the largest 'profit' on a gallon of fuel are the >> federal and state governments. Most states make more per gallon than [quoted text clipped - 6 lines] > > They're fat and happy with all the FET with which to play. Let's see: The federal tax is fixed, regardless of the price of gasoline. What does that say about your conjecture?
> --------------------------------------------------------------------------- > [quoted text clipped - 11 lines] > > "What this country needs are more unemployed politicians." - Edward Langley witfal - 23 Jun 2007 22:26 GMT >>> The entities that make the largest 'profit' on a gallon of fuel are the >>> federal and state governments. Most states make more per gallon than does [quoted text clipped - 8 lines] > Let's see: The federal tax is fixed, regardless of the price of > gasoline. What does that say about your conjecture? You're quite correct. Mea Culpa. But the state and local taxes are not.
Jeff - 23 Jun 2007 22:12 GMT > The entities that make the largest 'profit' on a gallon of fuel are the > federal and state governments. Most states make more per gallon than does > the oil company that made the gasoline How much are oil companies and refineries making on gasoline? What is the average state and federal tax on gasoline?
Jeff
> LOL > [quoted text clipped - 13 lines] >> >>> Anger at owners is completely misdirected. Mike Hunter - 24 Jun 2007 01:07 GMT According to the US Commerce site the average is around 17c a gallon or 1.4c LESS than the federal tax and far less than the average state tax of 30 some cents. Station operators earn from 1c to 7c a gallon, about what they earned when gas was 25c a gallon. The real profiteer are the commodities buyers, that set the rate for crude at any given time
mike
>> The entities that make the largest 'profit' on a gallon of fuel are the >> federal and state governments. Most states make more per gallon than [quoted text clipped - 4 lines] > > Jeff Jeff - 24 Jun 2007 03:45 GMT > According to the US Commerce site the average is around 17c a gallon or 1.4c > LESS than the federal tax and far less than the average state tax of 30 some > cents. Station operators earn from 1c to 7c a gallon, about what they > earned when gas was 25c a gallon. The real profiteer are the commodities > buyers, that set the rate for crude at any given time Depends. In California, the cost of refining, including profits, was over $1.10 last month, but is around $0.70 now. I doubt that the cost of refining changed that much, leading me to believe that the profit was 40 cents higher in May.
http://sfgate.com/cgi-bin/article.cgi?f=/c/a/2007/03/09/MNGF9OID9N1.DTL
This says that the profit margin is $39 per barrel in CA.
Overall average is $28.75 per barrel. If you divide that by 42 gal per barrel you get something like $0.60 profit per barrel.
http://sfgate.com/cgi-bin/article.cgi?f=/c/a/2007/03/09/MNGF9OID9N1.DTL
So, state and federal taxes may have been more than the refinery profit last fall or last year, today, refinery profit is more than state and federal taxes combined.
Jeff
> mike > [quoted text clipped - 5 lines] >> >> Jeff Mike Hunter - 25 Jun 2007 02:30 GMT You are free to believe whatever you choose LOL
mike
>> According to the US Commerce site the average is around 17c a gallon or >> 1.4c LESS than the federal tax and far less than the average state tax of [quoted text clipped - 31 lines] >>> >>> Jeff Jeff - 23 Jun 2007 04:19 GMT >> I wonder, do gas stations make enough to actually care to jimmy rig >> the machines? I heard they (the store owner) only make pennies on the [quoted text clipped - 7 lines] > > What rock do you live under? The one just east of the one Mike Hunter lives under. Is brown with green stripes. ;-)
> I used to pump gas as a kid, and the profit for a gas station owner was > not in the gas, it was in the service bay. the gas kept the lights on > and maybe paid the wages. The money was in the services that we did. > > Today, the money is in the hot dogs and potato chips ... Or the services. There are still gas stations that fix cars.
> Gas just gets them in the door, the money is in the non-gas products > they buy. Yeap.
Unless they are owned by the refiners.
Jeff
GO Mavs - 23 Jun 2007 04:22 GMT >>> I wonder, do gas stations make enough to actually care to jimmy rig the >>> machines? I heard they (the store owner) only make pennies on the gallon [quoted text clipped - 27 lines] > > Jeff Even then, let's say it is a Mobil or a Texaco or a Shell... arent those gas stations franchised? The owner just owns the store and gets profits the same way everyone else does.
Jeff Strickland - 23 Jun 2007 04:42 GMT >>>> I wonder, do gas stations make enough to actually care to jimmy rig the >>>> machines? I heard they (the store owner) only make pennies on the [quoted text clipped - 33 lines] > gas stations franchised? The owner just owns the store and gets profits > the same way everyone else does. There are franchise stores and company stores. You or I might operate a franchise store, whereas the company itself will operate the Company Store. Then, there are independent stores. These are the Joe's Gas, Bait and Tackle that you see dotting the landscape. They buy the same gas, and try to make ends meet for $0.04 per gallon instead of $0.05 that the Big Boys get.
Jeff - 23 Jun 2007 22:14 GMT <...>
> Even then, let's say it is a Mobil or a Texaco or a Shell... arent those gas > stations franchised? The owner just owns the store and gets profits the same > way everyone else does. Some of these stations are franchised, but the oil companies also own a large number of gas stations.
Jeff
Jeff Strickland - 23 Jun 2007 04:38 GMT >>> I wonder, do gas stations make enough to actually care to jimmy rig the >>> machines? I heard they (the store owner) only make pennies on the gallon [quoted text clipped - 25 lines] > > Unless they are owned by the refiners. Even the refiner-owned stores don't make much money on the gas. They profit on the sales of non-gas products.
The refiner makes its money selling to the gas stations, they don't care that they deliver to a company store or Joe's Gas, Bait & Tackle. This discussion is on the money that the guy with the pumps out front of his store makes. He is not making much from the sale of gas, maybe $0.05 per gallon. Maybe. This pays his cost to keep the doors open, that's about it.
JoeSpareBedroom - 23 Jun 2007 15:28 GMT >I wonder, do gas stations make enough to actually care to jimmy rig the >machines? I heard they (the store owner) only make pennies on the gallon as [quoted text clipped - 5 lines] > > Ofcourse, I guess it matters if the station is owned by the gas company. What they make on gas pales in comparison to the profits on the first 3 things you see when you walk in the door: soda, snacks and candy. That's why those things are there.
Bonehenge (B A R R Y) - 24 Jun 2007 00:50 GMT >What they make on gas pales in comparison to the profits on the first 3 >things you see when you walk in the door: soda, snacks and candy. That's why >those things are there. On this,I agree with Joe!
Nobody bitches about getting ripped off on Diet Coke, Funions, or Jolly Ranchers. <G>
But don't let the station owner make an extra 0.5% on gas!
mack - 24 Jun 2007 02:06 GMT >>I wonder, do gas stations make enough to actually care to jimmy rig the >>machines? I heard they (the store owner) only make pennies on the gallon [quoted text clipped - 9 lines] > things you see when you walk in the door: soda, snacks and candy. That's > why those things are there. Yep,. and don't forget the cigarettes, at $4.00 + per pack. Let's see, that's 20c a smoke. Wow, I can recall when a CIGAR was a nickel. (When I was too young to smoke 'em.)
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