Racing fuel prices?

[Lee Jordan (3223) A/S]

Originally Posted by Adger Smith

RJ, A long time ago a VP rep told me the price of Race fuel was tied to the Chemical market not the crude oil market. Guess that applies when they want the price high..

I would say that the pricing is not tied to crude oil pricing but their profit margins Are!! I work in refining and I know that all the base components used for blending racing gasoline are basically everything we make. The other components are also things made in the refining process. Some refineries make more petro chemicals than others but they are all blending components that are made in refineries.

Refining companies came under scrutiny some years ago for potential price gouging. This is not what VP is doing but they kinda are. They WILL make more money if crude is down because they can buy all the blending components based on market prices. It doesn't cost near what they charge to make the different blends they produce in general. What we are paying for is their research and engineering that goes into the different blends of fuel.