Posted by Essie at 3:52pm Mar 16 '05My grandmother works in the petroleum business. Her company supplies parts and equipment to oil companies, gas stations, and other venues associated with gas and petroleum products.
She has been told by a few of her customers that the reason gas prices are so high is that the oil distributors are backing eachother up. The gas stations are also backing eachother up.
What do I mean by that? They all have made an unspoken agreement to keep the gas prices high. That means that the shell station down the road won't charge 1.80 a gallon when the BP charges 2.07 and force the BP to lower prices to gain customers. They ALL are charging 2.07 (not the actual price, but just something off of the top of my head.) Oil and gasoline isn't costing as much as they say it is, apparently.
I wish I could interview these people myself or find some sort source for this information, because I think it would be a fascinating story.
She has been told by a few of her customers that the reason gas prices are so high is that the oil distributors are backing eachother up. The gas stations are also backing eachother up.
What do I mean by that? They all have made an unspoken agreement to keep the gas prices high. That means that the shell station down the road won't charge 1.80 a gallon when the BP charges 2.07 and force the BP to lower prices to gain customers. They ALL are charging 2.07 (not the actual price, but just something off of the top of my head.) Oil and gasoline isn't costing as much as they say it is, apparently.
I wish I could interview these people myself or find some sort source for this information, because I think it would be a fascinating story.