Anybody hear about the Diesel fuel shortage coming? [LOCKED AND WARNINGS GIVEN DUE TO POLITICS]

[Wheelin98TJ]

Prove your statement... because retailers have always made .05-.07 per gallon, why do you think station stopped providing full service and started selling food and shit, gas switched from being the primary product sold to being the secondary to the insundries a station sells....

I am the controller for a group of companies that own 70 fuel stations. I didn’t just make these figures up, I pulled them from our financial statements.

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[reckless kelly]

https://www.eia.gov/petroleum/supply/weekly/

 

[ShadowsPapa]

Prove your statement... because retailers have always made .05-.07 per gallon, why do you think station stopped providing full service and started selling food and shit, gas switched from being the primary product sold to being the secondary to the insundries a station sells....

While I was a manager for On With Life, Inc., in Ankeny, the boss at Casey's General Stores, Lamberti himself, put us up in his headquarters. Got an education on "convenience stores".
If it was't for convenience stuff - or those small mom and pop shops making their few dollars a week on beer and cigarettes, there'd be no fuel stations. They absolutely can't survive on the EPA regs, other federal and state regs, constant inspections, paperwork and so on selling fuel alone.
Casey's is big around Iowa - ever wonder why the Casey's on the south side of one town sells for xx/gallon while another one a few blocks away is higher? Yeah - they don't sell enough beer and cigarettes to make things work.
There can be 4 of their stores within a small radius and each have slightly different prices. The fuel comes from the same pipes delivered by the same trucks and yet even among their stores, we shop around for the best price.
If there's competition close-by like one of the big box stores that sells gas, they have to cut gas prices to get customers in the store - to buy other stuff.
It's a balancing act - and so many are so quick to judge the juggler if they don't put on the expected show.

The question should be, "If the United States was a corporation and you were the CEO how would you address this problem"?

I'd advise the board to sell to Musk.

 

[Teqsand]

I am the controller for a group of companies that own 70 fuel stations. I didn’t just make these figures up, I pulled them from our financial statements.

Sorry, still gonna throw a flag on that play... I have found ZERO evidence to support more than .10 gal actual profit ...so if your stations are making .50 gal, then either they are actually gouging, have zero competition, or someone is cooking the books to get to that number (e.g. leaving out the costs associated with delivering that gal into the end user tank)
But I welcome you to provide a source. I've dealt with different fuel stations friends have owned for 40 years

https://fortune.com/2022/08/09/ener...-fuel-retailers-high-gas-prices-alex-kinnier/

 

[Wheelin98TJ]

Sorry, still gonna throw a flag on that play... I have found ZERO evidence to support more than .10 gal actual profit ...so if your stations are making .50 gal, then either they are actually gouging, have zero competition, or someone is cooking the books to get to that number (e.g. leaving out the costs associated with delivering that gal into the end user tank)
But I welcome you to provide a source. I've dealt with different fuel stations friends have owned for 40 years

https://fortune.com/2022/08/09/ener...-fuel-retailers-high-gas-prices-alex-kinnier/

Tell ya what, I’ll post an income statement tomorrow when I get to my desk. Your choice of 2021 audited financials or internal year to date through September.

Yes, I have audited financials, so no cooking going on here.

We have a wholesale fuel license and buy unbranded fuel from the rack. We haul most of our own fuel. All costs including freight and taxes are included in the cost of good sold. I personally prepare the financial statements based on fuel invoices/BOLs and information captured from the registers.

Maybe your experience with fuel stations is different, but this is mine. I have no reason to make this shit up.

 

[ShadowsPapa]

Sorry, still gonna throw a flag on that play... I have found ZERO evidence to support more than .10 gal actual profit ...so if your stations are making .50 gal, then either they are actually gouging, have zero competition, or someone is cooking the books to get to that number (e.g. leaving out the costs associated with delivering that gal into the end user tank)
But I welcome you to provide a source. I've dealt with different fuel stations friends have owned for 40 years

https://fortune.com/2022/08/09/ener...-fuel-retailers-high-gas-prices-alex-kinnier/

Wow, 30,000 stations. That's a pretty good sample size.
And that matches what I learned from my times in the headquarters of Casey's.
Sure it varies, there are times it's more, but there are times it's less as well. You will never see any station selling fuel only unless it's attached to another business. It's not like the old days - but even then beer and cigarettes - and an attached shop - had something to do with their survival.
The costs associated with selling fuel have got to be crazy.

 

[Teqsand]

Tell ya what, I’ll post an income statement tomorrow when I get to my desk. Your choice of 2021 audited financials or internal year to date through September.

Yes, I have audited financials, so no cooking going on here.

We have a wholesale fuel license and buy unbranded fuel from the rack. We haul most of our own fuel. All costs including freight and taxes are included in the cost of good sold. I personally prepare the financial statements based on fuel invoices/BOLs and information captured from the registers.

Maybe your experience with fuel stations is different, but this is mine. I have no reason to make this shit up.

This begs me to ask for clarification...as you're not an oil Co, while you could possibly be making .50 gal, as you can set your own price, can you validate that the MFR (e.g. Exxon, chevron, shell etc, the ones being blamed) of that gal made any more than the .10 gal the data seems to show? They can sell to you at .10 profit and you jack the price, they get the blame because they are an easy target. (One forgets when calculating thier "windfall profits" they have other products also) (calif had a huge influx of fuel taxes after covid vs during, one could say a windfall)

 

[Cburd61]

It’s been a long time, but, I once dated a woman who worked at a convenience store. Id go there and help her close so she could get out of there a little quicker. Many times, when helping her fill out the fuel sold paperwork, I saw the cost list for the current delivery in the tanks. Cost would be, say, $1.05 per gallon, and they were charging $1.10, or so per gallon. I couldn’t believe they only made that much per gallon. She told me then, they make their money from beer and snacks.

 

[Wheelin98TJ]

This begs me to ask for clarification...as you're not an oil Co, while you could possibly be making .50 gal, as you can set your own price, can you validate that the MFR (e.g. Exxon, chevron, shell etc, the ones being blamed) of that gal made any more than the .10 gal the data seems to show? They can sell to you at .10 profit and you jack the price, they get the blame because they are an easy target. (One forgets when calculating thier "windfall profits" they have other products also) (calif had a huge influx of fuel taxes after covid vs during, one could say a windfall)

Any publicly traded company can be easily verified.

Our retail pricing is based on the market. We follow competitors and price it accordingly.

 

[Wheelin98TJ]

It’s been a long time, but, I once dated a woman who worked at a convenience store. Id go there and help her close so she could get out of there a little quicker. Many times, when helping her fill out the fuel sold paperwork, I saw the cost list for the current delivery in the tanks. Cost would be, say, $1.05 per gallon, and they were charging $1.10, or so per gallon. I couldn’t believe they only made that much per gallon. She told me then, they make their money from beer and snacks.

Our convenience store operations make a lot more margin dollars on fuel than any other sales category. It’s not even close.

 

[SuperUltraMan]

When did this thread become so much about cents on the dollar per barrel?!
It isn’t the driving factor at this time.
It’s most likely due to a war with posturing for bigger things that may lead to depleted reserves and our vehicles, both gas and diesel, may be off roading less due to limitations on mileage and possibly like the 80s with limited amounts to fill up our tanks.
I guess I expected a sincere discussion of whether anyone could help understand the possibility of rationing coming like the current situation in other countries.
I’m NOT trying to be political as I don’t care to discuss who’s in charge just whether we will be affected and how we may all be dealing with or preparing for such an outcome.

 

[SuperUltraMan]

I do appreciate the knowledge shared about the fuel industry.

 

[ShadowsPapa]

One forgets when calculating thier "windfall profits" they have other products also

Dang, you beat me to it. Polyester, asphalt (Polk County, Iowa, drove those companies to record profits this year), the plastic used in your cell phone, wax, and more - and that's just from the barrel of oil. There's also other things they are involved with.
They are also involved in wind, solar, battery production and so on - they see the writing on the wall so have diversified (or die). Shell has investments in making batteries for EVs, for example.
BP has invested in FreeWire and StorDot - the latter is an Israeli company that makes fast charging batteries.
So - as the solar and wind and battery companies make money, so does BP!
BP's income is not all from oil/gas. These companies invest like you or I do - so if StorDot and/or FreeWire make money - so does BP. There's part of your "record profits" - income from investments in other companies.
Hmmm, scream at profits - when part of those profits come from renewable energy sources, and companies trying to make EVs more agreeable.

 

[Teqsand]

Dang, you beat me to it. Polyester, asphalt (Polk County, Iowa, drove those companies to record profits this year), the plastic used in your cell phone, wax, and more - and that's just from the barrel of oil. There's also other things they are involved with.
They are also involved in wind, solar, battery production and so on - they see the writing on the wall so have diversified (or die). Shell has investments in making batteries for EVs, for example.
BP has invested in FreeWire and StorDot - the latter is an Israeli company that makes fast charging batteries.
So - as the solar and wind and battery companies make money, so does BP!
BP's income is not all from oil/gas. These companies invest like you or I do - so if StorDot and/or FreeWire make money - so does BP. There's part of your "record profits" - income from investments in other companies.
Hmmm, scream at profits - when part of those profits come from renewable energy sources, and companies trying to make EVs more agreeable.

People have a tendency to look at oil Co's as single minded dolts.. when they equality is they 110% know they have products with limited lifespan on the feed stock that allows them to make what they do. they think Exxon doesn't see an end to fuel oils as well know it, they have known from likely day 1....
And yes they are very diversified and thier research into alternatives is not a passing curiosity but a matter of life and death for the future of the companies...

 

[Rusty PW]

Look at the cigarette companies. They all got their fingers in something else now. And they are still making money.

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