The price of gas rises, so gas becomes less affordable. People can't PAY for gas, so they pull into the pumps while the place is busy, pump the gas and then bolt.
The store or station has to make up for the price of the drive-off, so they raise prices.
In the Chicago area, many gas stations have invested in hidden cameras around the gas pumps or have instituted a "pay first" or use a credit card policy.
My cousin is visiting from San Diego and he mentioned that the gas pumps out there shut off at $50 to limit the loss from drive-always. Fortunately, I haven't hit $50 for a fill up here, but we're coming awfully close :-(
Flawed analogy - If the station operator is raising prices to cover theft losses, the operator has to solve the theft problem.
There is a practical limit as to how high the operator can raise his prices over the wholesale fuel cost, before a majority of the customers notice that the gas is 15c cheaper across the street (or a block away) and business dries up.
And the oil companies give the station owners an upper limit as to how much they can mark up the fuel. If they notice you've jacked the retail past their "MSRP", they just jack up the wholesale price.
Google up the phrase { gasoline "zone pricing" } and you will get an education. The problem is not the high prices, it's oil industry collusion in artificially restricting the supply, and government regulations keeping new players conveniently out of the game.
I've hit a few, and when I do it's a bit of a shocker.
And never in "the city" - usually an independent in a smaller town like Oxnard or Santa Paula, where they don't want to spend a whole lot of money upgrading the dispenser heads to do prepay.
Bad enough they had to pay to rip out the old tanks and install the double-wall tanks and piping and vapor recovery systems. And every time the leak detector screams they have to rip out the tanks or all the fuel distribution piping (or both) and start over.
Here's my prediction: as the price of gas gets higher, there will be an increase in theft of gas from cars, and a booming market for gas cap and tank drain security devices.
In the UK, it is th more the government steals. Sure oil companies are making record profits, that is because different divisions own the wells, and sell it to the refineries who sell it to the pump station franchises. So they make all the way, but that is their business.
The government takes about 65-70% of the cost of fuel at the pump in the UK.
Yeah, I tried to siphon gas out of my car to power a generator after a hurricane... never did have any luck. Anyone have a viable alternative other than buying/storing more cans? (nervously watching weather.com) ;-)
Just don't use an American credit card. I used a Mastercard at the pump to pay for fuel recently near Montreal then drove off. About twenty miles down the road a cop pulled me over. When I asked why he stopped me he said 'you have insulted the crown, you drove of without paying for your petrol.' I don't speak French and did not understand when told over the speaker I had to come inside to use the card. ;)
Try this. Get a hose about six foot long. Push the hose all the way into the tank so it can fill with fuel. Place your thumb over the end of the hose. Withdraw the hose until just a foot is still in fuel. Lower the balance of the hose down to a container on the round, remove your thumb. Walla, the fuel will flow into the container. ;)
Problem - it never gets all the way to the fuel in the tank. There is some kind of baffle in the way about 12-18 inches inside the filler neck. This is a 2003 Matrix I am talking about, but the 99 Honda CR-V has a similar device. I don' t think I am imagining this... I tried for quite a while to get down to the fuel, and the tanks were full or nearly so.
The only true relief there is for this is to use less of it. It will nevver get better because sometime in 2006 or 2007, world demand for oil will exceed capacity to produce it and when that happens $100/barrel oil will be common place and considered cheap. Or one can keep sticking their head in the sand beliving that it is limitless and blame oil companies when it is $5/gallon. You can make a choice, you can commute in a 15mpg SUV or a 25 to 30 MPG or better car.
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