schlep1967 wrote:
JRscooby wrote:
schlep1967 wrote:
My thoughts are that some of the smaller stations may stop filling there diesel tanks simply because they don't have the capitol to pay for thousands of gallons at that price.
This makes 0 sense in time of rising prices. You buy 10,000 gallons, expecting to sell for $4.00 a gallon. But the price goes up, and you sell that fuel for average price of $5, you have $10,000.00 extra to pay for the next tank full.
Dropping price is more likely to hurt a station that pays for fuel up front.
I agree there is money to be made. But the old adage that it takes money to make money is still true. They need to have $60,000 to fill that 10,000 gallon tank.
NO...all fuel stations run on consignment from the suppliers or distributors, no retail station is paying upfront for fuel inventory, whether it's diesel or anything else.
There was an article in Bloomberg recently about potential shortages in the Northeast due to a NJ refinery being offline and also no crude coming in from Russia to the East coast. The government has released reserves to keep the supply adequate but prices were reported to be $6/gal in some areas.
It doesn't sound like we are seeing any actual shortages based on replies to this thread.