Gas in Atlanta (alpharetta) - $1.57 Premium
09-12-2001, 05:46 AM
#11
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Well, if the cost of the supply to the gas stations is expected to rise, it makes sense.
Gas stations set their prices based on a margin above what they expect their gas supplier to charge for their FUTURE deliveries. If they expect that supplier to jack prices due to mid-east turmoil or whatever, then they are covering their butts to not lose money. I would say it is reasonable to expect the crude price to rise in the upcoming future. Simple economics.
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