Fuel Prices............WHY ??
Gas prices have dropped nearly a dollar in our area..........and diesel has dropped about 10 cents.........why hasn't diesel prices maintained the same decreases as gasoline? Brian
Forum Discussion
Diesel is actually cheaper to produce than gasoline is. I'm told the reason it is more expensive is because they don't sell as much of it. It's a volume thing. They still have to maintain the pipelines and the distribution network and all just like gas, but with a lower sales volume they still have to charge more to maintain the distribution network. I have no idea how true that is as I'm not in that business, but it does make sense.
It's the same concept that if you run a small retail business you may find that the prices you have to pay from your wholesale distributer for your product are more expensive than what you can go to Costco and pay for the item retail at Costco. You and Costco may be buying from the same place, but they are buying millions while you're buying dozens so they can sell it a lot cheaper than you can.
It's the same concept that if you run a small retail business you may find that the prices you have to pay from your wholesale distributer for your product are more expensive than what you can go to Costco and pay for the item retail at Costco. You and Costco may be buying from the same place, but they are buying millions while you're buying dozens so they can sell it a lot cheaper than you can.
