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-   -   Rant Oil at $53/barrel - but my oil change price stays the same? (https://gfy.com/showthread.php?t=1158697)

SilentKnight 01-10-2015 10:44 AM

Oil at $53/barrel - but my oil change price stays the same?
 
Got an oil change in the car earlier this morning - but discovered the price has stayed the same as my last oil change...despite the plummeting price of a barrel of crude.

Curious - I talked to the owner about it. He says his supplier has never dropped the price of oil...so he has no savings to pass along to the customer.

Funny how that is... :disgust

dyna mo 01-10-2015 10:50 AM

what makes that sort of shit even funnier is a gallon of gas costs $2.50 but a quart of motor oil costs $6

SilentKnight 01-10-2015 10:59 AM

Quote:

Originally Posted by dyna mo (Post 20353530)
what makes that sort of shit even funnier is a gallon of gas costs $2.50 but a quart of motor oil costs $6

There's definitely something back asswards in the equation.

dyna mo 01-10-2015 11:01 AM

so not only does the price not drop when the wholesale price does, it's artificially inflated to begin with!

nice racket.

Barry-xlovecam 01-10-2015 11:36 AM

Gasoline/motor fuels are a fast depleted/replenished commodity so they are more price sensitive. Motor oil has lower 'traffic' so it is no so sensitive - but- when prices go up they rarely come down fast.

Been to a grocery store lately? The lower fertilizer prices have not affected the food chain for meat production yet and wont for months. Some, price sensitive produce, trucked here from Mexico, has come down in price -- I bought a quart of Mexico grown strawberries for $1.67 yesterday but it was a price loss leader probably. Lower diesel fuel prices help make this possible -- so there is some 'trickle down' affect perhaps.

romeo22 01-10-2015 12:01 PM

some1 will make extra profit

blackmonsters 01-10-2015 12:22 PM

You have to figure in inventory.

If I have a month's inventory of oil and the price of oil drops; I still have to
sell a months worth of oil at the previous price since I already bought it.

And motor oil is not crude oil and it has to be refined and graded.

.

dyna mo 01-10-2015 12:25 PM

Quote:

Originally Posted by blackmonsters (Post 20353604)
You have to figure in inventory.

If I have a month's inventory of oil and the price of oil drops; I still have to
sell a months worth of oil at the previous price since I already bought it.

And motor oil is not crude oil and it has to be refined and graded.

.

that's not how the pricing works on oil.


I understand motor oil is refined, but it certainly is NOT refined more than gasoline and its refin9ng process doesn't cost 10x more than gasoline.

ravo 01-10-2015 12:32 PM

Quote:

Originally Posted by dyna mo (Post 20353613)
...and its refin9ng process doesn't cost 10x more than gasoline.

Yeah, but packaging and transport does.

blackmonsters 01-10-2015 12:56 PM

Quote:

Originally Posted by dyna mo (Post 20353613)
that's not how the pricing works on oil.

That's how it's going to work in my store no matter what because I'm not going to
change price tags everyday like the price of oil changes.


Quote:

Originally Posted by dyna mo (Post 20353613)
I understand motor oil is refined, but it certainly is NOT refined more than gasoline and its refin9ng process doesn't cost 10x more than gasoline.

It takes two bottles of liquid petroleum(refined from gasoline) to make an oil bottle to sell the oil in.

:1orglaugh

dyna mo 01-10-2015 12:57 PM

Quote:

Originally Posted by ravo (Post 20353620)
Yeah, but packaging and transport does.

no, it does not.


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