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Author Topic: gas prices Back to Topics

Rookie Author

Joined:Mar 2013
Message Posted: Mar 6, 2013 9:15:31 AM

why buy a gallon when it's cheaper by the barrel.
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Champion Author Maryland

Joined:Aug 2004
Message Posted: Mar 6, 2013 11:03:32 AM

Not sure why you're asking the moderators why you can't buy gasoline in barrels instead of having to buy to it by gallons, but I'll assume that you're asking why you can't buy in larger quantities, expecting a "quantity discount", in the same manner that you generally pay less per item when you buy a case rather than buying one at a time (i.e., a case of 96 rolls of toilet paper being cheaper at Costco than buying 96 rolls of toilet paper at your local Safeway).

You can buy by quantity. If your local distributor is willing to make public/private sales (at discount prices), make arrangements with your local distributor to have fuel delivered to your holding tank (in the same manner thatEs he delivers fuel to gas stations), or see if your local distributor allow you to bring approved containers to the distribution point for filling. All that's necessary is having places to store your containers of fuel (barrels, if you will) until you're ready to transfer the fuel to your car or truck's gas tank. Essentially, and depending on what your "holding tanks" are, you may even want to have your own "gas pump" to make it easier to transfer the gas you're storing (than if you used siphon hoses).

Or are you asking something else, such as why does a barrel of oil currently cost about $92 a barrel, but a gallon of gas at the local gas station costs $3.50?

If that's your question, then the question shouldn't be "why buy a gallon when it's cheaper by the barrel", but why does a gallon of gas cost at the gas station cost more than a gallon of gas crude oil costs. And the answer to that is that the gasoline made from the crude oil hasn't yet been delivered to the refinery, refined, delivered to gas stations, and ultimately/eventually sold to you in the quantities you need for the size of your fuel tank.

Does that answer your question, or are you asking something else?
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Champion Author Orange County

Joined:Oct 2001
Message Posted: Mar 6, 2013 10:50:20 AM

Another magnificent example of the need to require some threshold be met before new members can create topic threads.
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Champion Author Austin

Joined:Aug 2007
Message Posted: Mar 6, 2013 10:15:19 AM

Gasoline is sold in gallons; oil is sold in barrels. Try running oil in your gas tank.
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