Dan Youngquist wrote:

It's nice that they want to be nice, but if/when the price drops,
they're going to be in big trouble. No one is going to line up to buy
the expensive fuel they bought at the top of the market, and they'll
have to sell it at a loss. Whether the price is rising or falling, the
only way for the seller to come out even is to price according to
current replacement cost. They need to make a little extra money when
the price is rising, because they _will_ lose money when the price
drops. The narrower the profit margin, the more it hurts.

If they charge based on replacement, and if prices DO decline, they can
adjust downward their current costs (higher) against previously lower costs.
If they price current fuel lower, they completely remove any capacity to
move prices down.

It's simply a matter of thinking more than a day ahead, something so many
people miss.


--
Matt
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Matthew W. Barrow
Site-Fill Homes, LLC.
Montrose, CO