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-- so if you're waiting for gas prices diploma don't hold your breath oil giant house is calling it quits on its gas stations the sole reason that there's no money and it did you know.
That for every fifty dollars that you spend at the -- The station only a station owner only makes a buck 25 so why should you care mean you don't feel sorry for that guy right.
We -- digging into your wallet to pay more at the pop as a result of has getting out.
Here to explain it is sound result -- he's executive director of New Jersey gasoline retailer association.
Do you really my analysis I mean is that White House got out because they're basically not making a lot of money downstream they're making all the money upstream -- why have guessed it.
You hit the nail right on the head -- gasoline retail market.
Earned big profits the margins are very very slim for the out amount of money that needs to be laid out.
And certainly the bean counters -- -- have finally had enough and they've made that determination.
That the third Lago -- stool.
The market being lake.
Is a drag on the very profitable.
Oil and exploration lake so they're gonna keep dad got rid of every.
-- -- and you're talking up at three phases of how oil gets into our car there's the exploration and production of oil selling futures that we all that is very profitable there is the refining which can be or not.
And then there's that last line -- the gas stations.
Which a lot of people think those guys are really getting rich because they go up and they see the price and they see a quickly moves up.
And they say this guy's making a fortune but that's just not the case well I think.
Did the in recent years the public is basically being educated I know I've been doing my best to help educate them.
That the margins -- gasoline retailers that corner gasoline station owner.
Those margins are very very slim I could take -- to gas stations right now.
That are making less than five cents a gallon and that's on a product that right now cost three dollars and 63 dollars and 65 cents.
So does this has stations that somebody else -- run or do you think they go out of business and -- what does that mean for consumer prices I think it's too early to tell what happens to behest locations there -- number options.
One -- no -- -- poignant could come in and take them over.
Or the distributor he can either he'd make -- distributor could come in.
Make a purchase and operate the retail facilities.
Or can be broken up into smaller distributors which is more of what -- -- in New Jersey this a lot of very reputable small distributors.
That supply gasoline retail outlets before you -- when asked you to react to what's happening what it -- Hugo -- passing in Venezuela.
How do you think that that impacts the consumer.
Well that's that may -- short term impact.
The market place is gonna react I think it'll probably cause an increase in prices in the very short term.
We saw prices rise from the beginning of the year.
But in the last week we started to see some declines the death of Hugo Chavez is likely to put the brakes on those declines we saw in the last few days that have not yet shown up at the pump.
-- I was afraid you're gonna say that because we have seen prices rise steadily they've been so many occasions Thanksgiving Christmas where we've said this is the highest month ever seen.
The price of gasoline is -- national average on this day.
We were just starting to get a little relief -- you think that this news could put the floor that.
Yes but this is not this isn't going to be a permanent.
Reaction whatever happens in the next few days could pan out differently in the next week or so hours about a thank you so much for coming -- it was appreciate your time my place.
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