Here is one of the questions that a friend of mine asked me (ok, it was Breedo) in a discussion (ok, argument) we had last week:
Q. Pump prices went up sharply overnight after Katrina. How can gas station owners justify raising the price 50 cents a gallon for fuel they've already bought that's sitting in their tanks?
A. To make sure they can afford the next load of gas coming tomorrow or next week, station owners say. In a notoriously low-margin business where lottery tickets and cigarettes are far more profitable than gas, few station owners have much working capital on hand, so they need to raise prices on today's gallon of gas to pay for next week's price increase, said Tom Pickett, owner of Arthur's Sunoco in Dorchester.
''Your next delivery is going to cost $10,000 more, and then what happens if the price goes down?" said Paul O'Connell, executive director of the New England Service Station and Automotive Repair Association. ''You can't stay 30 or 40 cents ahead of the competition. It's a tough game right now."
Breedo has started to become a celebrity here on paci.blog. Maybe I should start a blog with him and argue incessantly until we turn blue in the face...