Re: Profit of Filling Up!


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Posted by Frankenbiker (32.136.10.81) on 03:06:58 04/04/08

In Reply to: Re: Profit of Filling Up! posted by Ben

: Thought so, as the same thing has been reported out here about independent stations.
:
: Then the question begs to be asked: then where did the $40 Billion profit Exxon come from????

Most of the profit in the gasoline transaction comes at the wholesale level, not the retail level. Exxon sells as much "raw" fuel to other marketers as they do to their own franchises. Do some looking around SF to figure out where your gasoline wholesale distribution facility(ies?) are, and watch them for a while. You'll notice that nearly every major brand buys wholesale fuel from the same tank farm. They add the special "Brand X" additives when they get to the retail store to make it "Brand X" gasoline.

Exxon also sells a lot of raw crude oil to other refineries when it has the wells, but not the refining facilities. It also buys crude in the same manner to feed it's own refineries.

Most of the "excess" cost in gasoline can be directly attributed to futures trading at the wholesale level. Futures trading is essentially unregulated, and we all pay the price for speculation greed. (and a weak/terminally ill dollar doesn't help at ALL.)

-blaine



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