DelMarVa's Premier Source for News, Opinion, Analysis, and Human Interest Contact Publisher Joe Albero at alberobutzo@wmconnect.com or 410-430-5349
DelMarVa's Premier Source for News, Opinion, Analysis, and Human Interest Contact Publisher Joe Albero at alberobutzo@wmconnect.com or 410-430-5349
It's pretty simple economics: when oil plummeted, they used the cheap oil to refine low-grade gasoline and other low margin product and kept the stock piles of premium gas in storage and are not making more until needed. It will start to come down later next month when they run low on mid and high-grade.
ReplyDeleteI understand the theory from 7:12 AM but also in the mix is another economic concept, supply and demand. With fewer cars on the road, less demand while the supply is in a glut with the production war between the Saudis and Russians. Another factor in the mix is competition...if the other fueling stations are $.05 or more cheaper why would anyone buy gas at Royal Farms. I bought gas yesterday at Goose Creek for $1.89/gal but it has been as low as $1.83.
ReplyDeleteAt the same time, they are now charging $2.19 per roll of TP. Not per package, per roll!
ReplyDelete744
Deleteuse your finger to wipe your ass
I bet you wont rub or touch your face anymore
7:12
ReplyDeleteIt's simple economics. The more money they can squeeze out of you the more profit they make.
I'm confused. The prices where I live have dropped and are the same as the prices at Wawa and the Shell station.
ReplyDeleteBecause they purchased their supply before the prices plummeted. If they sell it below what they purchased it for they'll be losing money. Any person in business would know this.
ReplyDeleteYet it’s funny that if oil prices go up, prices are immediately raised. It doesn’t matter if the gas that they have was bought at the lower price. They don’t leave the price the same. The raise it immediately.
DeleteBingo...
DeleteIt's called inventory replacement cost.
DeleteB's don't tell me there supply hasn't done a turn over atleast x3 they are gouging.
Deleteno body is forcing you to get gas there. If you think they are too high, it's simple. Go somewhere else! They can sell it for whatever price they want.
ReplyDelete7:58 - But what is infuriating is the fact that prices go up overnight. If anyone just gets an idea that crude is going up, up go the pump prices. Immediately, even before they buy any of the higher priced crude. But when crude drops, it takes days or weeks for the pump prices to drop and they always use this argument. This practice has nothing to do with supply and demand, just geed.
ReplyDeleteHell, gasoline and diesel prices go up if a hurricane is predicted and "might" shut down production of an offshore oil rig. Oil companies deserve to have their profits cut for while, maybe a long while.
DeleteBecause everything at Royal Farms is expensive? And their food is nasty. And their bathrooms are nasty drug injection sites.
ReplyDelete830....wat u talkings bout yo ?
DeleteNormally if anything in the world drives oil prices up you see gas prices go up almost immediately but in this case the oil has been steadily going down but that gas prices hasn't dropped past $1.83 for awhile now.
ReplyDeleteI ride in a electric car. Morons.
ReplyDeleteAnd I bet your farts smell like roses.
DeleteElectric cars powered by coal to make ELECTRIC ... FOOL.
DeleteSo if companies and airlines bought fuel futures when oil went negative 40 a barrel oil companies basically pay them to buy?
ReplyDeleteIt's called RIP OFF!
ReplyDeleteWith all the other sources and local guys, why does anyone buy gas at Royal Farms?
ReplyDeleteKinda silly to pick on Royal Farm when they are priced consistently BELOW nearby competition for their club members by 10 cents.
ReplyDeleteThe real money is in health products. Newsom of CA closed a $1B sale of ventilators from the Chinese while Hogan closed $9M worth of masks from S Korea. I just read where another governor is ordering some to wear pink wrist bans to indicate quarunteen status. Great commission checks for some lucky officials.
Blame the federal Govt for NOT ordering them ALL to go DOWN to 50 cents
ReplyDeleteApril 23, 2020 at 7:58 AM:
ReplyDeleteYou are obviously not a businessperson. If you keep your prices high because you don't want to lose money, and don't have any sales, you lose your entire investment in inventory and go out of business. If you sell at a loss, due to supply and demand metrics, you CUT your losses while recovering SOME of your investment. Every businessperson KNOWS that.
It's simply nobody in Salisbury has or wants to start a price war with the volume of gas being sold at an all time low. The wholesale price has dropped but so has the number of gallons sold.
ReplyDeleteBIGGEST G O U G E R S !!!! = Gas stations !!!!
ReplyDelete& NOT a Damn thing ever Done about it by the Govt !!!! High Time Now
No, I think the movie theater has them beat
DeleteAnd that's a fact Jack
DeleteAny price over 50 cents a Damn Gallon should be a CRIME all 50 states !!
ReplyDeletewaa waaa waaa, just go to the next station. Stop whining.
ReplyDeleteWaa Waa?
Deletebecause they have employees to pay, and worse yet, they have employee health care to pay and social security to pay, and taxes to pay, and fees to hire legal people to make sure they dont get sued everytime someone slips on the sidewalk....
ReplyDeletenone of those things should exist.
ALL banks are guilty of usury,
All insurance is an evil scam.
All taxes are theft.
Hey, prices are fine compared to OTHER countries!
ReplyDeleteWe are fortunate - indeed!
#BoycottRF
ReplyDeleteCome on people, how could you be so dumb? You know it’s the “summer blend” that they tell us is more expensive every year!! 🤣😂🤣. They just got theirs early this year.
ReplyDeleteStupid Americans never complain & like being screwed !!! I Do NOT !!!
ReplyDeleteJust keep going along with the Corrupt system & it WILL get worse !!
YOU can pay $7.00 a gallon , I Not doing it !!! Hell NO !!!
report them for price gouging
ReplyDelete-Because they are still selling the stock they bought at the old price and don't want to lose money.
ReplyDeleteIs this so hard to understand?
B's they have rotated that supply a month ago AT LEAST.
DeleteRussia & Middle East Laughing at the Stupid Americans every day !!!
ReplyDeleteKeep on being their SLAVE so they can ride in Limos & live in Mansions !!!
We Paid for DUBAI & China's Citys many times over !!!!
ReplyDeleteAfter the Virus is over they will SKYROCKET the damn price to $ 7.00 Gal
ReplyDeleteWhy 531
DeleteFor a country who claims it has plenty of gas & oil , WHY is the price so
ReplyDeleteHigh ??? tell me that !!!!
They would never purchase gas in larger amounts in a highly volatile situation. They would and have purchased it day to day in order to protect themselves from huge price decreases. They and others are gouging us now. When the price drops is when they make their margins. Simple math, if their price is lower and the bring down the pump price slower the more they make. The price average in the ground gets lower each time they put more in the tank. The price at the pump will go lower very slow if at all. If the competitors in the area lower theirs all will go down together.
ReplyDeleteAn investigation into this will only show that they are making more money. The lowering of prices is not required by them. It would only show their sensitivity to their customers and their willingness to help out during this time of need.
Name a time where Royal Farms helped anyone but themselves. There donations are all self serving. They care little about their employees.
Look at the way they are treating them right now.
After all is back to normal, there will be hearings into price gouging and all will be able to see. Wawa, Goose Creek and other larger distributors are all in the same boat.
My suggestion would be find a locally owned station other than these and purchase from there. At least the money make stay local. Anyone know of any?
The price of oil can be $0 or below, like it was last week, but there are still costs associated with transporting the oil to refineries, refining the oil into gas, piping the gas to storage facilities, trucking the gas to the gas stations, and gas stations making enough money to make some type of profit to remain open.
ReplyDeleteSo if they bought gas futures at negative 40 they will pay you to fill up?
ReplyDeleteArabs laughing with Delight !!! They have plenty of OIL & still get to SCREW
ReplyDeleteus in America by Keeping the Price up !!!
Have their cake & eat it too !!!
BIGGEST GOUGERS = GAS STATIONS in America !!! ALL ignored by Govt
ReplyDeleteI just filled up yesterday for $1.599 / Gal. Regular every day price, but I'm not telling anybody where. Figure it out for yourselves.
ReplyDelete