Comments on: Most West Michigan BP stations getting me angry http://www.thegasgame.com/2008/08/01/most-west-michigan-bp-stations-getting-me-angry/ Keep track of gasoline prices, oil prices, future gasoline prices, future oil prices, see predictions, get price prediction, find gasoline prices, see if you're getting gouged, find news about diesel prices, ethanol prices, and refinery maintenance and refinery shutdowns. Tue, 07 Feb 2012 16:59:14 +0000 hourly 1 http://wordpress.org/?v=3.3 By: The Gas Game » Blog Archive » BP “answers” complaint about “grade gap”, too little too late? http://www.thegasgame.com/2008/08/01/most-west-michigan-bp-stations-getting-me-angry/comment-page-1/#comment-1611 The Gas Game » Blog Archive » BP “answers” complaint about “grade gap”, too little too late? Fri, 15 Aug 2008 02:28:34 +0000 http://www.thegasgame.com/?p=718#comment-1611 [...] couple weeks ago, I blogged about how I typically fuel up at BP and recently became frustrated with their new mark-up scheme on mid-grade and premium gasoline. Their “grade gap” [...] [...] couple weeks ago, I blogged about how I typically fuel up at BP and recently became frustrated with their new mark-up scheme on mid-grade and premium gasoline. Their “grade gap” [...]

]]> By: Retailer http://www.thegasgame.com/2008/08/01/most-west-michigan-bp-stations-getting-me-angry/comment-page-1/#comment-1566 Retailer Fri, 01 Aug 2008 15:03:06 +0000 http://www.thegasgame.com/?p=718#comment-1566 We don't buy any gas from BP, so I don't see their rack prices. But, they should be pretty close to what we pay. Last spring the oil companies increased the spread between grades, and a lot of stations (including ours) decided that they needed to increase their spreads from 8 or 9 to 10. 11 is a bit high, but not rediculous. Our margins today at $3.859, $3.959, and $4.059 are .142, .187, and .186. So, we make a little more per gallon on the higher grades. But, the volume is so low on them, that you don't really make much profit. I think you are mistaken about an increase of premium only cars, because the amount of premium we sell drops every year. 10 years ago a lot of stations sold 5-10,000 gallons of premium per month, today it is rare to sell 2,000. So, an extra .045 per gallon for 2,000 gallons is an extra $90 per month. But, your profit is really decided by what day you get a delivery. The compartmets on a gas truck are normally divided into 2x 4,000 2x 2,000 and 1 1,400 gallon compartments. So, you are going to either get 1,400 or 2,000 gallons at a time, which will take a month to sell. There is a HUGE difference between retail prices today and rack prices a month ago. A lot of stations are losing 30+ cents per gallon on premium today. Bottom line, premium has become a hassle for the oil companies, the trucking companies, and the retailers. If we ever find a more profitable product to put in those tanks, you will have a hard time finding premium gas I didn't hear anything about the BPs going $3.999, but I was told that the Meijer at 28th and I-96 went straight to $3.999. So, I don't know who moved first. We don’t buy any gas from BP, so I don’t see their rack prices. But, they should be pretty close to what we pay. Last spring the oil companies increased the spread between grades, and a lot of stations (including ours) decided that they needed to increase their spreads from 8 or 9 to 10. 11 is a bit high, but not rediculous.

Our margins today at $3.859, $3.959, and $4.059 are .142, .187, and .186. So, we make a little more per gallon on the higher grades. But, the volume is so low on them, that you don’t really make much profit. I think you are mistaken about an increase of premium only cars, because the amount of premium we sell drops every year.

10 years ago a lot of stations sold 5-10,000 gallons of premium per month, today it is rare to sell 2,000. So, an extra .045 per gallon for 2,000 gallons is an extra $90 per month. But, your profit is really decided by what day you get a delivery. The compartmets on a gas truck are normally divided into 2x 4,000 2x 2,000 and 1 1,400 gallon compartments. So, you are going to either get 1,400 or 2,000 gallons at a time, which will take a month to sell. There is a HUGE difference between retail prices today and rack prices a month ago. A lot of stations are losing 30+ cents per gallon on premium today.

Bottom line, premium has become a hassle for the oil companies, the trucking companies, and the retailers. If we ever find a more profitable product to put in those tanks, you will have a hard time finding premium gas

I didn’t hear anything about the BPs going $3.999, but I was told that the Meijer at 28th and I-96 went straight to $3.999. So, I don’t know who moved first.

]]> By: Bill Olson http://www.thegasgame.com/2008/08/01/most-west-michigan-bp-stations-getting-me-angry/comment-page-1/#comment-1565 Bill Olson Fri, 01 Aug 2008 14:46:14 +0000 http://www.thegasgame.com/?p=718#comment-1565 Patrick, Schumackal Oil in TC has done this for years.. 11c differential for the grades. Yet ya go to the UP, there is a 10c total spread between 87 and 93 octane. So it is not just BP. Patrick, Schumackal Oil in TC has done this for years.. 11c differential for the grades. Yet ya go to the UP, there is a 10c total spread between 87 and 93 octane.

So it is not just BP.

]]> By: jim http://www.thegasgame.com/2008/08/01/most-west-michigan-bp-stations-getting-me-angry/comment-page-1/#comment-1563 jim Fri, 01 Aug 2008 12:22:38 +0000 http://www.thegasgame.com/?p=718#comment-1563 I don't know why they would hike like that, but i have read that BP is the only company to custom blend their "premium" fuel. I don’t know why they would hike like that, but i have read that BP is the only company to custom blend their “premium” fuel.

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