Sinclair for one has pricing power. Being the sole refiner instate, they have
the ability to integrate their retail cheaper. They don't feel the need to in
such an isolated market place, however. They are better off pushing extra
product into markets like Denver instead of flooding SLC and watching prices
drop. They can get their stations what they need, maintain a higher than average
price and margin, and source the rest of the gasoline elsewhere. That is pricing
power, when you have good market share and can get away with a higher price.
Here are the pricing structure for SLC based on the last 300 days of
reporting:Tier One Most Aggressive Flying J, MaverikTier Two
Competitive Conoco, Tesoro, 7-Eleven, TexacoTier Three Market Follower
Sinclair, Phillips, ChevronAs you can see, Sinclair maintains at
least a six cent average above the pricing leader despite its more integrated
position.They are certainly not helping Utah prices to fall.
The gas prices in Utah are clearly coming from a monopoly...the Utah Petroleum
Distributors. If ever there was a case for price-fixing, collusion, and
monopolies...it is the Utah Petroleum Distributors. The distributors claim that
Utah is "isolated" and has "special" circumstances. This is false...there are
much more isolated areas of the country. So why are we paying thirty plus cents
higher than anywhere in the country...because the Utah distributors have
colluded..whether verbally or not...to keep the prices high in Utah. If John
Huntsman has the political backbone to go after these monopolies...then do it
Governor...don't say that you have no jurisdiction...look at the monopoly and
collusion laws of this country. If you have aspirations for higher
office...then why not make a REAL name for yourself and get tough with these
Utah suppliers. Ask for some Federal assistance in finding out why there is
such a disparity in our prices. Further, if Costco and Sam's Club would refuse
to purchase the Utah supplier's fuel...and shut down their sales...if only for a
month...that would immediately get our prices in line with the rest of the
country. It is time for action Governor...not another meeting with the
Who are these local people anyway? These retailers that think they are entitled
to as much profit as possible from their oil. Would the world be a better place
if we ALL charged more for our products and services? Are these greedy people
the same smiling faces we see everyday, the guy that sits next to you in church,
you know the one- he drives a sixty-five thousand dollar SUV to haul his spoiled
little brats around. You're right, I have nothing nice to say about people that
make a living off other people in the face of hardship. You should be ashamed.
Your Maker is on my side.
How about that, Lee? Lower octane gas costs less to produce. Our 85 octane
gasoline should be priced, on average, lower than the 87 octane standard
produced across the nation.Why isn't it?
WE NEED TO REGULATE THESE UTAHNS OIL MAFIA!!! REGULATE, THE LAW AGAINST THESE
PEOPLE!!! NO MORE FIXING, WE NEED TO DEMAND THE RIGHT PRICE!!!
Secret combinations are among us, and they range from the gas and oil types to
the legislature. How can we take over the controls and when will we do it?
Isn't it funny that when oil prices rise, our gas prices go up immediately. When
oil prices drop, it takes months to come down. The station owners I have talked
to, say their gasoline distributors tell them what to set their prices at. Sure
seems like price fixing.
We demand an investigation NOW!!!!
Even sadder - we're paying top dollar for the lowest grade gas also 85 octane,
when most of the country is paying a lot less for 87.But did anyone
notice that as soon as Huntsman said he was going to check into prices the
prices went down a bit?
Here in the Dallas, Texas, area regular unleaded presently sells for about $3.35
per gallon. Utah used to be a pretty decent place to buy gas, but now it's more
expensive than California? Something's not right. Good luck with that.
This is the dumbest argument for anything I have ever heard? Utah is isolated?
More than Kansas? More than Wyoming? There is something else going
on. Price fixing?