09-01-2005, 03:30 PM
Yeah, Barrel oil prices are based on crude not refined oils. Opec sets the price per barrel based on consumption per millions of barrels. Refineries buy the oil, then must refine it at addional cost which is marked up for the wholesale distribution to gas stations. Most gas stations however are subsidaries of refineries (BP, Shell, Exxon, etc). These companies can set the price to whatever they want based on the crude price and what it costs them to refine it plus distribution (is the gas coming from Us or foreign oil crude fields). Gouging occurs when franchise gas station owners mark gas up due to block to block competition. They call their competitor and agree not to undercut one another or they change the price of gas dependent on location of their own franchises. Independents must set prices according to what the refinaries charge them in order to make a profit.