[Vision2020] What a ripoff!!!

[Kenneth Marcy]

On Friday 27 July 2007 13:34, Paul Rumelhart wrote:
> Just curious.  Does anyone know how gas is routed to Moscow?  I'm 
> assuming that Moscow is not somehow more isolated or remote than most of 
> the places on that list, but I guess it might depend on whether they 
> have to move it farther to get it here.
<snip>

Transportation costs are not as much of a price determinant as is the price 
from the wholesaler delivering to Moscow, and the margin per gallon or the 
percent margin required by the local vendor. The wholesaler's price may 
depend on contracts with the local dealer that require meeting or exceeding  
minimum numbers of gallons pumped per month, and the local vendor's price 
may be a function of both vendor needs and expectations, and what local 
competitors are charging.

Lower retail gasoline prices might be stimulated by additional gasoline 
vendors in the market. Rather than vendors whose operating margin depends 
only on fuel sales, one might consider merchandisers who offer lower-priced 
on-site fuel sales as a customer convenience. Existing examples might be 
found at some regional Wal-Mart stores and some Safeway stores nationally.


Kenneth Marcy