Premium to Regular gas price spread
10-07-2005, 10:39 AM
#1
Melting Slicks
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Premium to Regular gas price spread
Historically, the major brand gas retailers have maintained a 20 cent spread between regular gas (87 octane) and premium gas (93 octane).
Since Katrina, I've noticed that some retailers in northern New Jersey have increased the spread to anywhere from 25 cents to 40 cents. Some Exxon outlets seem to be the greatest offenders.
What's going on here? Is this going on in other parts of the US?
I had always heard that the additional cost to make premium was only a couple of cents more than regular. Have the refiners increased the wholesale cost to the retailers, or are the retailers becoming greedy?
Since Katrina, I've noticed that some retailers in northern New Jersey have increased the spread to anywhere from 25 cents to 40 cents. Some Exxon outlets seem to be the greatest offenders.
What's going on here? Is this going on in other parts of the US?
I had always heard that the additional cost to make premium was only a couple of cents more than regular. Have the refiners increased the wholesale cost to the retailers, or are the retailers becoming greedy?
Last edited by easyrider13; 10-07-2005 at 12:20 PM.
10-07-2005, 12:26 PM
#4
Burning Brakes
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St. Jude Donor '07
I think they have found another way to screw us. All the talk about gas prices is about regular so they figure they can make extra on the higher grades because they're not being watched as close.
Racetrak, Tampa, FL today: $2.85/$3.05/$3.25!
Several others here are doing it as well. Shell jumps 12-14 cents at some stations I passed today.
Racetrak, Tampa, FL today: $2.85/$3.05/$3.25!
Several others here are doing it as well. Shell jumps 12-14 cents at some stations I passed today.
10-07-2005, 12:43 PM
#6
Team Owner
Self-serve premium (93) is $3.099. Silver (89) is $2.999, Regular (87) is $2.899 at the BP/Amoco station where I trade.
10-07-2005, 01:05 PM
#9
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Still .20 cents difference here.
10-07-2005, 01:32 PM
#11
Racer
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Originally Posted by OHSIXX
Still .20 cents difference here.
Same in Atlanta, Gahttp://www.gasbuddy.com/
This will show gas prices everywhere.
10-07-2005, 02:10 PM
#13
Le Mans Master
Originally Posted by easyrider13
Historically, the major brand gas retailers have maintained a 20 cent spread between regular gas (87 octane) and premium gas (93 octane).
I rember back in High School, when gas was $0.13/gal regular and $0.15 for 'ethyl'. Percentage wise, this still looks like $0.20 spread today. I also remember in the late 1970s and early 1980s that many places did not even HAVE premium gas!?!
The spread between regular and premium (aka high test) has only been $0.20 since gas got into the $1.00 region (or the last 15 years).
10-07-2005, 02:41 PM
#14
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Originally Posted by MitchAlsup
Historically?
I rember back in High School, when gas was $0.13/gal regular and $0.15 for 'ethyl'. Percentage wise, this still looks like $0.20 spread today. I also remember in the late 1970s and early 1980s that many places did not even HAVE premium gas!?!
The spread between regular and premium (aka high test) has only been $0.20 since gas got into the $1.00 region (or the last 15 years).
I rember back in High School, when gas was $0.13/gal regular and $0.15 for 'ethyl'. Percentage wise, this still looks like $0.20 spread today. I also remember in the late 1970s and early 1980s that many places did not even HAVE premium gas!?!
The spread between regular and premium (aka high test) has only been $0.20 since gas got into the $1.00 region (or the last 15 years).
10-07-2005, 02:42 PM
#15
Melting Slicks
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Originally Posted by MitchAlsup
Historically?
I rember back in High School, when gas was $0.13/gal regular and $0.15 for 'ethyl'.
I rember back in High School, when gas was $0.13/gal regular and $0.15 for 'ethyl'.
I remember getting a dollar's worth of gas in my high school days, and driving around on it for a few days.
But the spread for the past 15-20 years has been 20 cents.
10-07-2005, 03:00 PM
#16
Team Owner
Durring the last couple of weeks, I've noticed that preminum is $.25 more than regular, at a lot of gas stations. It has been no more than $.20 more than regular.
10-07-2005, 05:41 PM
#17
Drifting
The cost to make premium is about 6 cents per gallon over regular in most of the US, and almost double that in California because CARB regulations rob octane, which must then be made up by more expensive processing. Vastly more people buy premium than really need it, and if the price was only 6 cents over regular, that over-buying would be much greater, and refineries would find it very difficult to keep up. I know this next statement won't get much sympathy, but the reality is, whether you choose to believe it or not, that oil company profit as a percentage of the capital they must spend, is actually slightly below average for all manufacturing. The going price these days for a refinery is 4 billion bucks, with a "B". So stop your whining. You pay almost as much for bottled water as for gas, and I'll guarantee that an Ozarka plant doesn't cost 4 billion.
10-07-2005, 08:45 PM
#20
Drifting
Two huge Exxon refineries (Baytown and Baton Rouge) were impacted by the hurricanes. They are probably temporarily buying from others to cover that lost production, and may be having trouble buying premium, which in turn might explain the extra spread.
When I said stop your whining in an earlier note, I wasn't intending that in a mean or put-down sense. It's just that oil companies are whipping boys right now, and all the conspiracy stuff gets old. If oil companies were as profitable as everyone seems to think, there would be a whole lot more of them. Yes, this is a good year. But the crummy years with the layoffs never make headlines. I repeat that if you look over the long haul at both the good and the bad years, our average profits as a percent of the huge costs of refineries and production facilities are not excessive.
When I said stop your whining in an earlier note, I wasn't intending that in a mean or put-down sense. It's just that oil companies are whipping boys right now, and all the conspiracy stuff gets old. If oil companies were as profitable as everyone seems to think, there would be a whole lot more of them. Yes, this is a good year. But the crummy years with the layoffs never make headlines. I repeat that if you look over the long haul at both the good and the bad years, our average profits as a percent of the huge costs of refineries and production facilities are not excessive.