Forum Discussion
Ralph_Cramden
Jan 05, 2018Explorer II
ksg5000 wrote:Ralph Cramden wrote:ksg5000 wrote:
Oregon is a big strange but some would argue that your ultimate gas price is determined by the distributors and tax authorities and not by the minimum wage earned by gas attendants --- goes against the basic econ rules we learned 40+ years ago but "free market" ain't so free when there are limited number of distributors.
Oregon laws remain in effect because everytime someone tries to overturn the the law people point out that the gas in nearby states is usually higher than Oregon.
Basic economic rules would dictate that the wages and other associated costs for maintaining employees get passed down to the consumer. I find it hard to beleive there are many gas station operators in Oregon or anywhere else that provide that service out of the goodness of their own heart, and on their own dime. There is not much of a profit margin on fuel at the retail level to begin with, which is why the vast majority of gas stations are now convenience stores.
Yep - but basic economic rules require free market and that doesn't exist in the distribution chain in Oregon and many other states. Oregon gas prices tend to be lower than neighboring self serve states despite having higher tax rates - go figure.
goducks10 wrote:babock wrote:agesilaus wrote:x2
yep if you don't like it or it bothers you keep out
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It's not that it bothers the other 98+ percent of us, we just marvel at the stupidity of at least a major chunk of Oregonians
You can laugh all you want while pumping your own gas at .40 more per gal.
I just marvel at the ignorance of some people.
Perhaps Oregon is the economic oddity of the universe where things happen in reverse?
I too marvel at the ignorance.
Average retail gasoline price in Oregon today = $2.79 (TAXES $0.33 gal)
Average retail gasoline price in Pennsylvania = $2.75 (TAXES $0.58 gal)
Comparing to here, when you adjust taxes to be equal for sheets and giggles, the average retail price here in PA would be $2.50 gal to Oregon's $2.79, $0.29 less for pumping it ourselves. (Now that is if we were not paying the highest gas taxes in the nation and paying the same as in Oregon to keep our roads and infrastructure in tip top shape which is a whole other story. LOL)
Granted you have logistical price differences at the wholesale level but come on people, someone is paying for that station attendant and its not the station / store owner, the distributor, the state of Oregon, or the man in the moon.
Another way to look at it is take a gas station / store open 24/7 that has to maintain fuel distribution technology engineers.
1 week = 168 hours @ 24/7.
Oregon minimum wage = $10.25
Actual hard cost per hour of maintaining an employee per hour = ($10.25 + 28%) $13.12
168 hours X $13.12 = $2204.16 per week ( That's a conservative number)
Average number of gallons sold daily as per NACS = 4000
If it costs me as a station/store owner $2204.00 per week to pump your 28000 gallons of gas per week, that's $0.07 per gallon that it costs me to pump your gas, and I'm sending that straight to you in one way or another. It's either getting added to your gas price, or the pack of gum or condoms you just bought inside, but I am not footing the bill for it.
That is the way things work in the economic world, possibly not Oregon LOL.
For more fun lets compare costs to Washington where you pump your own which should eliminate most of the logistical cost differences.
Average retail gasoline price in Oregon today = $2.79 (TAXES $0.33 gal)
Average retail gasoline price in Washington today = $2.92 (TAXES $0.49 gal)
Retail average with taxes adjusted to be equal......
Oregon $2.79 per gallon
Washington $2.76 per gallon
Nothing wrong with having your gas pumped for you, but you are paying for the convenience in one way or another, even in the economic abnormality of Oregon.
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