RBOB vs Pump Price Spreads

[Tech Analysis]

From what I understand, RBOB is the price of unleaded minus taxes, delivery, station profits, etc. So my question is - how can stations here in Phoenix be selling gas at 1.759 when RB is trading (today) at 1.33, when federal taxes are 18c and AZ state taxes are 19 for a total of 37c. And today's fuel was purchased at more than 1.33 a few weeks ago of course.

Many midwestern states such as MO are even cheaper. They're transporting and selling at well under a dime a gallon and that seems very unlikely.

 

[ogarbitrage]

RBOB is the price in NY Harbor; there are hundreds of various rack prices across the nation that trade +/- NY RBOB. Each are subject to local supply/demand fundamentals and refinery economics.

 

[EnergyTrader]

From what I understand, RBOB is the price of unleaded minus taxes, delivery, station profits, etc. So my question is - how can stations here in Phoenix be selling gas at 1.759 when RB is trading (today) at 1.33, when federal taxes are 18c and AZ state taxes are 19 for a total of 37c. And today's fuel was purchased at more than 1.33 a few weeks ago of course.

Many midwestern states such as MO are even cheaper. They're transporting and selling at well under a dime a gallon and that seems very unlikely.

Years ago I read that the normal Pump markup for regular unleaded is 2c/gallon and most pumps would lose money selling just regular unleaded. The markup on Super Unleaded tends to average 16c/gallon (wholesale Super Unleaded is only 2c/gallon more than regular unleaded).

I doubt today's pump fuel was purchased a few weeks ago, unless the pump is a rarely used one in the countryside, in which case it probably has to charge more when prices are falling. Busy highway gas stations have tanker deliveries multiple times a week.

 

[murray t turtle]

From what I understand, RBOB is the price of unleaded minus taxes, delivery, station profits, etc. So my question is - how can stations here in Phoenix be selling gas at 1.759 when RB is trading (today) at 1.33, when federal taxes are 18c and AZ state taxes are 19 for a total of 37c. And today's fuel was purchased at more than 1.33 a few weeks ago of course.
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Good question/discussion ;
good timing also- I heard on that[Christian network] radio experienced sector spokes person Trudy Lundberg trying to talk gas price UP this am.LOL. Actually candle chart looks a bit more bullish than texas tea.........................................

Also some EXXON gas station- food store still give s free air when most charge about .50 or .75 cents.Remember when all air for tires was FREE??? Exxon make s plenty on their'' traders coffee''.....+ food
Plenty of food-gas stores sell gas below cost just to get you in the store..... I think walmart sells about .30 cents above/+ the wholesale price, but they give a cash/card discount for 2or 3 cents, off that.
Also while some dealers got price see-sawed out of business;
since most long term trends are up. UP trend gasoline chart would help dealers profit, mostly; especially if they refill several times per week.

I like to buy early in mourning when its cool; that IS why Canada put cool adjusted gauges on Cananadian pumps; but NOT on southern gas pumps where i live/LOL

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