The price of fuel at the stations is panic pricing. Let's say a station has 20k gallon capacity for regular e10. Most stations keep their tanks at about 25% capacity. These are usually the independents that buy on the spot market. They try to maximize margin and not throughput. When a tanker drops the fuel load in the tank, the money is drafted out of a station account at the time of the drop, prices change at midnight. When prices are going up, some stations hedge that the price increase is going to be a short one. So they don't want to fill up at the current high price, because then they would have to sell below cost if the price drops quickly. The smart ones keep their tanks full, keeping their average price lower.
Now oil suppliers play a game where they know the price is going up at midnight, so make the drop after. But they can't say we are short drivers too often, or they lose a customer.
As long as demand doesn't surge, prices will begin to come back down in a month or so. Don't forget, mid term elections are this year, so prices "will come down". Just going to be bumpy for a bit.
Now, since I got home after only half a day at work, 12 hours is half a day right? I am going to go wordle.
Larry
