its gouging !!!!!!!!!!!!! They had their tanks filled from previous shipment that was at X.XX / gallon plain and simple.... i can understand that maybe their next shipment might go up so then they raise price, but the next morning, to be HONEST i'll bet they raised them that night 1-2 a.m. that's B.S.
If the next shipment costs considerably less, should they immediately sell the product, that they recently paid more for, at (perhaps) a lower price than they paid?
Right. I'd really like
f35phixer to explain how this would work. I'll set the scene - two gas stations across the street from one another. Station A got its tanks refilled a day ago, Station B got its tanks refilled last week, and gets refilled this AM at a higher price from the supplier.
So you are saying that it is OK for Station B to raise its price with this new gas, but Station A mus keep its lower price until they refill? Well, Station B isn't going to sell much gas, most people will go to Station A, until A runs out. Seems inefficient.
Oh, Station A's tanks were 13.7% full when they were filled, Station B was 17.6% full when refilled. Do we take this into account? Who enforces it? Do we have a Gasoline Czar in charge of monitoring every stations inventory, the price paid, and current offering price? Do you think the cost of that no-vaue-added bureaucracy would give us lower average prices? Explain.
For even more 'fun', consider a similar scenario when the price drops. The station that just filled their tank with expensive gas can't afford to lower lower their price (as they didn't raise it in the run-up), the other station won't run out of the now cheaper gas, so the more expensive gas will go stale, and the station stuck with expensive gas may go out of business. Less competition could mean higher prices for consumers.
With free markets and supply/demand, we pay and try to get the best price offered. The cost is the supplier's business. They need to be competitive to stay in business, and if they can be more efficient, they can win with higher profits and/or by offering their product at a lower price, to get more volume (and higher total profits). Others will see this and have to compete to stay in business.
It's their greed that drives prices down for consumers, not the other way around. If they try to be a different kind of greedy, and raise prices for the same level product/service above their competition, they will make less money. A very bad way to be greedy.
So by letting prices float, the ups and downs average out. That's better than an added layer of administration that can only add cost.
But if you have a better explanation, I'm all ears and eyes.
-ERD50