Station owners explains gas prices

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Station owners explains gas prices

By Jessica Oakley

MIAMI, Florida, May 9, 2008 (NBC) -- Why are gas prices rising nearly every day?

When will it stop, and who's behind it?

Those are questions that many of us are asking.

One Florida fuel distributor wants the public to know that the blame shouldn't fall on gas station owners.

Gas magnate Max Alvarez owns and operates 65 stations in Florida and distributes to 100 more.

He buys directly from the oil companies. 

At 6 p.m. the oil companies notify his West Miami office how much they will charge per gallon that day.

Max then adds in taxes and freight to calculate what price his stations will be able to sell the gasoline at.

With wholesale prices at record levels and local competition tough, Max says he only adds one or two cents to the cost of each gallon.

That's far below the ten to 15 cents he needs to add to the price for the fuel sales to be profitable.

He blames speculators for the skyrocketing prices.

Speculators are investors who buy oil commodities, hoping they'll go up.

Analysts say speculators can't really influence the price of crude because they don't take oil off the market. 

"There's a lot of people to be blamed, but I can assure you the speculators, Wall Street people have a lot to do with this," Max said. 

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