[Healeys] gas prices

[Alan Seigrist]

James -

The difference is driven by market economics, you will make less money
if the difference is too big.

If you are attempting to make money by differentiating your product,
there's not much value in it for oil because basically it is a
monopoly industry.  Because of this, they employ monopoly pricing,
which means the price differential between grades is very narrow.  If
the differential was too big, everyone would just buy the cheaper
stuff and the oil companies would make less money because of that.

In a nutshell, they have us over a barrel so there's no need to cut
anyone any deals.

Alan

'52 A90
'53 BN1
'64 BJ8


On Tue, Jun 24, 2008 at 12:09 PM, James  Shope
<healeymanjim at hansencc.net> wrote:
> does anyone know why even with the drastic rise in gas prices, the
> differential between regular, mid-grade and premium remains the same, i.e., 10
> cents for midgrade and 20 cents for premium.  are the additives not made from
> petroleum or have the refinerys just eating the price rise?    healeymanjim