Originally Posted By: Hankster
Gas prices are controlled by the oil companies but the retailers have a stake in the slow drop in prices as well. You wouldn't expect someone who bought a storage tank of gas at a certain price when oil was more expensive to immediately drop the price if the cost of oil drops. Wouldn't do much for his lower-than-you-think profit margin.



Hank,
Your point about inventories is well taken. Only a fool would buy gas at $3.00 a gallon and sell it at $2.50. But about margins. Their huge volume makes a small margin very profitable

I keep hearing how low their margins are. But just down the street from me is a guy who has a $2M home, toys in past years including helicopters, huge motor home, full sized palms planted around the pool and pool house, thoroughbred horses, etc.,etc. etc. What's he do? Oh yeah he inherited three gas stations. His margins appear to be just fine.

I do not begrudge his lucky sperm status, but don’t ask me to weep for his low margins.
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No huevos no pollo.