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GasBuddy News Article


As gas prices fall, gas stations' profits actually rise
Monday, December 01, 2008
USA Today -- Feeling sorry for gas stations as prices plummet? Don't.

Although retail gasoline prices have fallen 55% since mid-July, wholesale prices have plunged even more sharply — 68%, according to the Oil Price Information Service. As a result, retailers have enjoyed record profit margins since mid-September.

"Guess what? They're making substantially more money at $1.89 (a gallon) than they were at $4.29," says OPIS chief oil analyst Tom Kloza.


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JT
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Message Posted: 12/1/2008 9:04:00 AM  Ignore JT Report Abuse
Monday, December 01, 2008
USA Today -- Feeling sorry for gas stations as prices plummet? Don't.

Although retail gasoline prices have fallen 55% since mid-July, wholesale prices have plunged even more sharply — 68%, according to the Oil Price Information Service. As a result, retailers have enjoyed record profit margins since mid-September.

"Guess what? They're making substantially more money at $1.89 (a gallon) than they were at $4.29," says OPIS chief oil analyst Tom Kloza.

Visit USA Today for full article
REPLIES (newest first)
skybiker
Veteran Author
South Carolina

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Message Posted: 12/2/2008 12:36:45 PM  Ignore skybiker Report Abuse
Yes, I don't want to see us lose any stations....
laoloup
Sophomore Author
Montreal

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Message Posted: 12/2/2008 10:32:42 AM  Ignore laoloup Report Abuse
Bad for big oil and OPEC. Serve them right!
ardmoretoday
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Oklahoma

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Message Posted: 12/2/2008 10:28:09 AM  Ignore ardmoretoday Report Abuse
Old News
Busy1
Rookie Author
Minnesota

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Message Posted: 12/2/2008 9:07:31 AM  Ignore Busy1 Report Abuse
better to have the little guy making the money instead of the ones that don't need it!!!
Busy1
Rookie Author
Minnesota

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Message Posted: 12/2/2008 9:06:24 AM  Ignore Busy1 Report Abuse
better to have the little guy making the money instead of the ones that don't need it!!!
GCL
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San Jose

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Message Posted: 12/2/2008 9:04:47 AM  Ignore GCL Report Abuse
So when gas prices were high, I was getting screwed by the wholesalers, and now I'm getting screwed by the retailers?
Lonewolftx
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Houston

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Message Posted: 12/2/2008 9:00:21 AM  Ignore Lonewolftx Report Abuse
Well good for them, we are all winning, eh!
Jamer
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Orange County

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Message Posted: 12/2/2008 8:59:30 AM  Ignore Jamer Report Abuse
This is great for the gas station owners, they usually are the ones who get the short end of the stick all the time.
BartBuzz
Veteran Author
Atlanta

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Message Posted: 12/2/2008 8:58:46 AM  Ignore BartBuzz Report Abuse
Ain't economics grand. Supply and demand...what's that?
BartBuzz
Veteran Author
Atlanta

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Message Posted: 12/2/2008 8:55:36 AM  Ignore BartBuzz Report Abuse
Ain't economics grand. Supply and demand...what's that?
eaglev
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Oklahoma City

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Message Posted: 12/2/2008 8:51:45 AM  Ignore eaglev Report Abuse
They didn't raise the prices as fast going up and it hurt them, now on the way down they can recoup some of their losses.
VTROCK
Sophomore Author
Detroit

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Message Posted: 12/2/2008 8:46:16 AM  Ignore VTROCK Report Abuse
Good for the gas stations. These guys are the face of high gas prices but not the cayse of it. They take all the abuse and try to squeel out a profit. When the price is that much lower, just the difference in credit card fees they have to pay is substantial.
94Vol
Rookie Author
Nashville

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Message Posted: 12/2/2008 8:39:53 AM  Ignore 94Vol Report Abuse
As long as the prices keep dropping at the pump I'm ok with them making a profit but I still think some of the stations our gouging
GasholeMI
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Lansing

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Message Posted: 12/2/2008 8:39:03 AM  Ignore GasholeMI Report Abuse
Goes to show that prices should have been lower during the drop. When the per barrel price was plummeting, the price at the pump should have been dropping faster too.

This should not surprise anyone.
mvosevich
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St. Louis

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Message Posted: 12/2/2008 8:38:30 AM  Ignore mvosevich Report Abuse
Station owners took a page from big oils playbook.
Allstop
Sophomore Author
Minnesota

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Message Posted: 12/2/2008 8:37:22 AM  Ignore Allstop Report Abuse
The more we conserve the lower they should go.
AZDaisy
Veteran Author
Arizona

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Message Posted: 12/2/2008 8:37:03 AM  Ignore AZDaisy Report Abuse
Prices went up $.10 here. How does that work?
napermike79
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Twin Cities

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Message Posted: 12/2/2008 8:36:48 AM  Ignore napermike79 Report Abuse
good for them
whitemiata
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Albany

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Message Posted: 12/2/2008 8:35:23 AM  Ignore whitemiata Report Abuse
why do so many of these posts have to be about envy - oil companies rich, we are not - and we have to be angry with them.... does it have anything to do with the companies that do the work - of getting oil out of the ground, of maintaining a gas station, or whatever... isn't that part of the american dream? - working hard, and with that hard work - to make something better for yourself? (without envying or grumbling at everyone else who is working hard along the way?)
armstrmb
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Houston

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Message Posted: 12/2/2008 8:33:37 AM  Ignore armstrmb Report Abuse
I'm glad to hear that the lower profits are benefiting someone beside myself and I hope that we see continued benefits.
aaaaaaaa
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Maryland

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Message Posted: 12/2/2008 8:33:16 AM  Ignore aaaaaaaa Report Abuse
We need to continue to conserve gasoline despite the lowering of the price.
rod1965
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Portland

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Message Posted: 12/2/2008 8:31:02 AM  Ignore rod1965 Report Abuse
Duh!
BoerneWatch
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San Antonio

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Message Posted: 12/2/2008 8:29:03 AM  Ignore BoerneWatch Report Abuse
Yes, now the customer can actually pay a $1.50 for that 10¢ cup of coffee while filling up their tank that nets the retailer less profit than the coffee.
niceguytx
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Houston

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Message Posted: 12/2/2008 8:28:37 AM  Ignore niceguytx Report Abuse
I could lower prices slower if it was in my financial interests. Volatility is their best ally.
tobasco
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Los Angeles

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Message Posted: 12/2/2008 8:28:16 AM  Ignore tobasco Report Abuse
Seems obvious.
spunky4443
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Washington

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Message Posted: 12/2/2008 8:24:51 AM  Ignore spunky4443 Report Abuse
Sure their making more money, with the lower cost of fuel, more people are driving now, that's a no Brainer.
sgm4law
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Maryland

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Message Posted: 12/2/2008 8:23:56 AM  Ignore sgm4law Report Abuse
I was very worried! Phew! Thank goodness!
Thanatos1369
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Illinois

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Message Posted: 12/2/2008 8:23:35 AM  Ignore Thanatos1369 Report Abuse
No matter the circumstance, somebody somewhere is making a record profit.
REVLAW
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San Antonio

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Message Posted: 12/2/2008 8:22:01 AM  Ignore REVLAW Report Abuse
A balance in life is what is nauturally and usually sought ... that is until the human element enters the picture.
parsec
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Toronto

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Message Posted: 12/2/2008 8:21:13 AM  Ignore parsec Report Abuse
Screwing you up and you feel sorry for them. However...
salog
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Columbia

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Message Posted: 12/2/2008 8:19:40 AM  Ignore salog Report Abuse
ok
shenna
Sophomore Author
Ontario

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Message Posted: 12/2/2008 8:19:34 AM  Ignore shenna Report Abuse
when opec goes down, fuel stations don't go down the amount they should
girlusps
Sophomore Author
Missouri

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Message Posted: 12/2/2008 8:19:27 AM  Ignore girlusps Report Abuse
keep conserving.....no matter how low the price
thomasteach
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Detroit

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Message Posted: 12/2/2008 8:18:54 AM  Ignore thomasteach Report Abuse
they're just trying to make a living... too many stations are closing as it is
glazarides
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Akron

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Message Posted: 12/2/2008 8:18:48 AM  Ignore glazarides Report Abuse
I feel bad for the "little guy" so it's good to see that they may be doing better.

Although I still want gas to go down to below US$1.50/gal.
bug27
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Kentucky

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Message Posted: 12/2/2008 8:17:23 AM  Ignore bug27 Report Abuse
I believe it. We call it gouging around here. When prices go up, they go up 30¢ at a time. When they go down, it's 1¢ to 2¢ at a time, begrudgingly. GOUGING!!!
kelsielee
Veteran Author
Atlanta

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Message Posted: 12/2/2008 8:17:21 AM  Ignore kelsielee Report Abuse
I guess that both consumers and gas stations have benefitted from lower prices. OPEC,however, still seems to be upset about the prices.
Chazzer
Champion Author
Nevada

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Message Posted: 12/2/2008 8:17:07 AM  Ignore Chazzer Report Abuse
Yeah, more people are buying gas!
danthemanvan
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Montgomery

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Message Posted: 12/2/2008 8:17:05 AM  Ignore danthemanvan Report Abuse
let's don't stop conserving gas, no matter how low the price goes!
Sisipepe
Sophomore Author
Maryland

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Message Posted: 12/2/2008 8:16:38 AM  Ignore Sisipepe Report Abuse
gouging
Redwingz
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Detroit

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Message Posted: 12/2/2008 8:16:32 AM  Ignore Redwingz Report Abuse
Some good news in a climate of doom and gloom.
PenDoctrJD
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Orange County

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Message Posted: 12/2/2008 8:16:20 AM  Ignore PenDoctrJD Report Abuse
Good for them.
MightyDude
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Minnesota

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Message Posted: 12/2/2008 8:15:50 AM  Ignore MightyDude Report Abuse
I say ol' chap utterly shocking ;-)
jake7497
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Wisconsin

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Message Posted: 12/2/2008 8:15:20 AM  Ignore jake7497 Report Abuse
Good for them.
Palico
Sophomore Author
South Carolina

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Message Posted: 12/2/2008 8:12:57 AM  Ignore Palico Report Abuse
Good the local gas stations need to recover some of the lost funds as well. Maybe this will help some of the ones that closed reopen. More competion is good.
owatonnajeep
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Minnesota

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Message Posted: 12/2/2008 8:09:45 AM  Ignore owatonnajeep Report Abuse
I'm actually happy for them
spadilla
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San Antonio

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Message Posted: 12/2/2008 8:09:26 AM  Ignore spadilla Report Abuse
As it should! I hope the local gasoline stations can recover from the losses they took over the summer months. I would hate to see these small business owners go down because speculators and OPEC were getting rich.
thedennis64
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Dallas

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Message Posted: 12/2/2008 8:08:53 AM  Ignore thedennis64 Report Abuse
The stations are now making some money and not just the oil companies.
rylank
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Mississippi

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Message Posted: 12/2/2008 8:07:06 AM  Ignore rylank Report Abuse
Finally the gas stations can make a little profit after so long in the red
DST43
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Oklahoma

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Message Posted: 12/2/2008 8:06:45 AM  Ignore DST43 Report Abuse
That is good for them
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