Gas price changes a mystery

On Friday, the Sun contacted Karl Allison, long time gas station owner, to ask him the reason for the fluctuation in gas prices.

Karl said, “They are going down. Crude oil is $50 a barrel now. I don’t have the slightest idea. Cost on regular right now is $1.83 something. We have one of the best mark ups we’ve had in a long time.”

He said, “If farmers want to buy diesel, they should buy it right now because I think we are at the bottom on that. I don’t think crude oil will get below 50 bucks. The reason I don’t think so is it has to be $50 a barrel for U.S. companies to afford to drill, so however the government manipulates that market, they will keep it at least at $50.”

Q. Who sets the gas prices nationwide?

Karl said, “We don’t know. I don’t have the slightest idea. Most of all of ours comes from Phillips 66.The bill of lading used to say: Phillips 66/Conoco. Now it just says Phillips 66. We don’t understand that part either. “

Q. How much are the taxes on fuel?

Karl: “37 cents. Diesel is actually 43, I think. There are several other little fees on there. You’ve got transportation. There’s about six different things on that bill of lading. It gets you up to $1.83.8, I think this morning.”

“Right now we got some of the best margins we’ve had. I’ve seen margins at 2, 3 and 4 cents. Almost nothing. Sometimes a nickel.”

Q. It’s hard to survive on that.

Karl: “No, you don’t.

“They come and go in Springfield. One side of town will be $2.08 and the other side of town will be $1.89.”

“I don’t know what causes the market to go up and down. Sixty-one years and I still don’t know.”

“Normally Cape Girardeau and that area, their cost is less than ours by a little bit.  That area and east of the Mississippi River are quite a bit cheaper. I don’t have the slightest idea why.”

“All I can tell you is what the cost is today. It went up four cents yesterday and came down a penny today. That put it at $1.8347 or something like that.”

He said he gets a fax every morning telling him his cost on fuel.

“I’ve seen crude oil going up and gas prices going down. And I’ve seen crude oil going down and gas prices going up.”

Q. John Kennedy, out of Louisiana, said the way to get even with the crown prince of Saudi Arabia is to become energy independent.

Karl: “I agree with him a hundred percent. We are getting close to that now. That’s why I think that crude oil will stay at $50 a barrel or higher. That lets us go ahead and drill. “

“I don’t know, Kenny, I don’t have the slightest idea. It goes up and down like a yo-yo. No logical reason.”

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