[Phillyfanfrombirth]

Originally Posted by silver_pilate

I understand why prices rise for the cost of gas, but what I cannot comprehend is how suddenly, the very day after Katrina hit, all the gasoline dealers immediately had a 50 cent price increase. I know that they are raising prices in preparation for their own raised costs, but until they actually see those costs from their suppliers, they are raking in the profits. And we all know that there will be significant lag between the time that their costs drop and their prices drop. It's a racket, plain and simple.

More of a racket, though, is the cost of oil from OPEC. It costs them something like $4 to make a barrel of oil, and they turn around and sell for $70. That's a 1,750% mark up!! Imagine going to a bookstore and buying a textbook for $1312, and you might get a better picture of the markup. Of course, why Katrina should effect the price of crude is another quesiton, as it's not the supply of crude that's a problem, but the refining of the crude into usable forms that's been affected.

Oh well, bottom line is we all know we'll pay whatever they ask us to for gasoline. Sure, some of us my ride the bus a few more times, but when it comes down to it, we'll all keep driving.

--nathan

Cash markets shot up just as fast... it was the markets leading the retailer, not the retailer leading the markets.