Oil prices down.Y is a quart so high?

westend wrote:

jolooote wrote:
Hi all. Going to change the oil in my Class'A'. Went to the auto parts store to get the oil. Conventional. A Barrel (55 Gallons)sells for about $32 on the world market. WHY does it STILL cost about $5.00 a QUART???:M

Because it's not the same product, for one. If cotton prices go down do you think a shirt is going to be less?

We are lucky to see gasoline and other fuel prices falling. It is about inventory being held, there is just so much tank space.

I get what you're saying westend but what I don't get is here in the Milwaukee area as soon as the raw material (crude) creeps up we see an immediate increase, when the raw material (crude) goes down like it has been the prices aren't keeping in pace with the slide.

It just seems to go UP faster than it goes DOWN

But ya know what? Aint nothin we're gonna do about it but take it.

Dan

jolooote wrote:
Hi all. Going to change the oil in my Class'A'. Went to the auto parts store to get the oil. Conventional. A Barrel (55 Gallons)sells for about $32 on the world market. WHY does it STILL cost about $5.00 a QUART???:M

Because it's not the same product, for one. If cotton prices go down do you think a shirt is going to be less?

We are lucky to see gasoline and other fuel prices falling. It is about inventory being held, there is just so much tank space.

This doesn't respond to the question, but - Valvoline is $3.00/qt at Tractor Supply right now - on sale. And their regular price seems to be $4.49. Advance Auto parts has the same qts for $5.99. :R

WyoTraveler wrote:
Because they can. I can remember back in the 50s a business would add 10 to 20 percent profit to an item when they sold it. Seemed like an honest thing to do. Now, even at Walmart, depending how much that item is needed and how much the public will pay. It is not unusual to see 100 to 150 percent or more mark ups on products. Just a few days ago I saw an item in Albersons for 88 cents. That same item at Walmart was almost $2. There is no honesty anymore anywhere. Buyer beware. Even Costco, the bargin store, will nail you on prices if you aren't savy. Unfortunately some items like oil have been price fixing for years. If you or I tried it we'd be in jail.

Pricing isn't always based on profit margin of individual products and never was. Stores will have "loss leaders" that they actually sell at a loss. They advertise these items and it draws people into the store where they buy them along with the other attractive items strategically placed on the shelves.

It's all about the store's overall profit/loss, not the item's.

None of the above really answer the question. The answer is basic, they have trained you to pay the higher price. What will they gain by lowering it? There is a fuel sur charge on almost every item in the store, will it come off? Not a chance, they trained you to accept that up charge and it has now become part of their expected and projected profit margin. They will rake in their ill gotten booty and divide the spoils among the top brass.

jolooote wrote:
Hi all. Going to change the oil in my Class'A'. Went to the auto parts store to get the oil. Conventional. A Barrel (55 Gallons)sells for about $32 on the world market. WHY does it STILL cost about $5.00 a QUART???:M

You may as well ask why a two liter bottle of Coke is sometimes cheaper than a 24 oz bottle at the mini-mart.

By the way, a barrel of oil (as in the unit of measure) is 42 gallons, even though an oil barrel (or drum) holds 55 gallons. A standard oil barrel holds about 1.3 barrels. The price per barrel refers to the unit of measure, not the container.

rjxj wrote:
Why haven't the grocery and airline travel prices gone down?

x2

Its like those prices are on a ratchet, they can only go in one direction, up.

Because they can. I can remember back in the 50s a business would add 10 to 20 percent profit to an item when they sold it. Seemed like an honest thing to do. Now, even at Walmart, depending how much that item is needed and how much the public will pay. It is not unusual to see 100 to 150 percent or more mark ups on products. Just a few days ago I saw an item in Albersons for 88 cents. That same item at Walmart was almost $2. There is no honesty anymore anywhere. Buyer beware. Even Costco, the bargin store, will nail you on prices if you aren't savy. Unfortunately some items like oil have been price fixing for years. If you or I tried it we'd be in jail.

Some of you are not paying attention or are completely uninformed on operating any business including the oil business.

Old-Biscuit wrote:
GO buy yourself a barrel of that OIL.....

Oh wait.
That OIL is crude straight out of the ground.
Would need to process it.......separate the impurities from the oil then separate the oil based on molecule size by distillation then deasphalting then solvent extraction then solvent dewaxing then finishing then you get a final base oil which has to be shipped to processing plant for additives, packaging then shipped to retail stores.

Add to that, all the new government environmental regulations and higher wages, taxes, etc.

Perhaps that $5 quart would be even more if the price of oil hadn't come down...........:?