Thread: F... gas prices
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Old 09-18-2008, 03:25 PM   #291
onlydarksets
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Re: F... gas prices

Quote:
Originally Posted by 724Skinsfan View Post
If I'm not mistaken. If you are purchasing gas to sell at a station you need to have the cash available for future purchases. Let's say you buy 100 gallons of gas for $100 now. You sell it for 10% markup and make $110. You have made $10 profit. Now next week gas goes up to $120 for 100 gallons. You don't have enough from last week's sales, you're $10 dollars short. Thus you need to sell it at a price that believe will keep you operational. There is no conspiracy only entrepreneurship.
I'm pretty sure my local gas station ran into this problem, where they didn't have enough gas left in their pumps to cover the increase in price. Instead, they ran out of the low-test for at least a few days. Now, it's also possible that their delivery was late, but I've never seen them without gas for more than a day.
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