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The Supersecret Law Of Supply And Demand . . .

. . . is run through ExxonMobil’s gigantic supercomputers and reflected in mysterious gas prices around the city:

Major oil companies use secret mathematical formulas to figure out the varying price of gas from one city to city — even as specific as one neighborhood to another.

Gas stations owned by large oil companies, such as ExxonMobil, determine the cost of gas by creating “geographic pricing zones” based on competition from nearby pumps, traffic patterns and the makeup of the local population.

Oil companies claim they use the formulas to confine competition to the smallest possible area in order to maximize prices at each outlet.

But independently owned stations set their prices based on the owner’s assessment — factoring in how much it costs to buy the gas from a distributor and the price of his nearest competitors.

. . .

The cost of crude itself accounts for about half the retail price at the pump. The rest of the cost is for refining, shipping, taxes and the cost of running the station.

But why does gas cost so much in Manhattan compared to Staten Island?

“There are fewer gas stations in Manhattan,” [New York State Petroleum Council lobbyist Cathy] Kenny said. “And there’s even fewer of them since owners figured out that selling the land is a lot more profitable than selling gas.”

This past weekend, the priciest place to get gas in the city was at a Shell station in Brooklyn and an Exxon station on Staten Island, both of which were charging $4.25, according to newyorkgasprices.com.

Posted: May 19th, 2008 | Filed under: Consumer Issues, Followed By A Perplexed Stroke Of The Chin

I Scream, You Scream . . .

. . . we all scream, “Hey, jackass, move your freakin’ truck before I bash your head in with an oversized wrench”:

The man in the Mister Softee truck stuck his head out the window and glared at the fellow in the white cap and black bow tie.

The guy in the bow tie grimaced back as he rang the bell on his Good Humor truck, whose bumper sat inches from Mister Softee’s.

“Ching ching ching.”

“This is open turf,” said Jose Martinez, 52, the Good Humor man, yanking at the bell.

Summer is more than a month away, but the ice cream wars have already begun. In neighborhoods across the city, skirmishes are breaking out over which franchise can sell its wares on which route. And the tension between the city’s purveyors of ice-cold treats can at times be thicker than a Chipwich.

There have been harsh words, hurt feelings and even bloodshed between competitors. In 2004, a couple in their 60s who owned and operated two ice cream trucks were ambushed in the Bronx and beaten with an oversized wrench. The motive, the police said, was the couple’s ice cream route. A rival ice cream salesman was charged with assault and sentenced to 10 years in prison.

While disputes between drivers of ice cream trucks rarely become that violent, they can be cutthroat.

(That last line is the mixed metaphor of the day.)

This could only mean one thing — the return of the Good Humor man, which some don’t find funny:

On Tuesday afternoon, new battle lines were drawn on the Upper West Side at the corner of Columbus Avenue and 83rd Street, where Ceasar Ruiz, 50, the Mister Softee man, said he had been selling ice cream without any competition for more than eight years.

He said his routine was the same every season. He arrives at the corner by about 2:30 each afternoon, mostly to catch the students getting out of Public School 9 and the Anderson School, just a few yards from the corner. He stays for about an hour and a half, then moves to his next location, he said.

But Tuesday afternoon was different. When he arrived, there sat the freshly painted Good Humor truck and Mr. Martinez, decked out in a crisp uniform, ringing his bell.

“I sell Good Humor, too,” Mr. Ruiz said. “But his is more cheap. I sell bar for $2. He might sell for $1.50. Not good. Not good.”

. . .

Good Humor trucks all but disappeared from the New York streets 30 years ago. In 1977, the Good Humor company shut down its street vendor operation, opting for supermarket freezers, said Robert Pinnisi, who helped restore Mr. Martinez’s truck. But the company gave drivers the option of being independent contractors. Mr. Pinnisi said he knew of only one other Good Humor truck operating in New York City, and one in Mount Vernon.

See also: The heretofore unchallenged Mister Softee juggernaut.

Posted: May 14th, 2008 | Filed under: Blatant Localism, Consumer Issues, Things That Make You Go "Oy"

Perfect Time To Release Those Commemorative Stamps Celebrating The 119th Anniversary Of Washington Statehood

In other news, the Advance reports that mail service is still widely used on Staten Island:

Don’t disregard the extra pennies you find laying around the house or car — you might need them Monday.

That’s when the price of mailing a first-class letter increases 1 cent, to 42 cents, along with a number of other postal rate hikes that take effect.

But there is a way to avoid paying more to mail a letter.

Forever stamps, which can be used after the hike, can still be bought at the old 41-cent price. But the cost of the Forever stamp will also increase Monday, to 42 cents.

Those still having unused 41-cent stamps will be able to purchase a new 1-cent stamp — the Tiffany Lamp — to make up the difference. Several new 42-cent stamps are also available.

The passage of the Postal Accountability and Enhancement Act in 2006 allows the Postal Service to increase its rates every May in accordance with the rate of inflation as indicated in the Consumer Price Index.

Posted: May 10th, 2008 | Filed under: Consumer Issues, Grrr!, Staten Island

Next To Laundromats, The Next Most Important Thing May Be A Grocery Store

The city should subsidize Fresh Direct deliveries to underserved neighborhoods*:

A continuing decline in the number of neighborhood supermarkets has made it harder for millions of New Yorkers to find fresh and affordable food within walking distance of their homes, according to a recent city study. The dearth of nearby supermarkets is most severe in minority and poor neighborhoods already beset by obesity, diabetes and heart disease.

According to the food workers union, only 550 decently sized supermarkets — each occupying at least 10,000 square feet — remain in the city.

In one corner of southeast Queens, four supermarkets have closed in the last two years. Over a similar period in East Harlem, six small supermarkets have closed, and two more are on the brink, local officials said. In some cases, the old storefronts have been converted to drug stores that stand to make money coming and going — first selling processed foods and sodas, then selling medicines for illnesses that could have been prevented by a better diet.

The supermarket closings — not confined to poor neighborhoods — result from rising rents and slim profit margins, among other causes. They have forced residents to take buses or cabs to the closest supermarkets in some areas. Those with cars can drive, but the price of gasoline is making some think twice about that option. In many places, residents said the lack of competition has led to rising prices in the remaining stores.

*Right after we figure out how to supply high-speed internet connections and computers to all.

Posted: May 5th, 2008 | Filed under: Citywide, Consumer Issues

Yes. And?

But what is perverse is that people who can afford not to spend half their income on rent are probably doing so, too:

Arnold Somrah was spending almost half of his income on the Park Slope apartment he shared with a friend. The 24-year-old finally moved back into his parents’ Ozone Park home.

“You can’t go out. Your Friday and Saturday nights are done,” said Somrah, who was paying $750 a month for his basement room. Samrah is now saving to eventually buy in Florida. “It’s too expensive here.”

Nearly 530,000 renters in the city are spending 50 percent or more of their income on housing, a 14.9 percent jump from 1999, according to data released yesterday by Rep. Anthony Weiner.

“Financial advisors say, ‘You should spend no more than a third of your income on rent'” said Weiner. “That’s sounding more and more like a pipe dream.”

The Bronx is feeling the burden the most, with 32.85 percent of its renters paying half their income on rent in 2006. Manhattan (22.32 percent) had the lowest.

Posted: April 30th, 2008 | Filed under: Citywide, Consumer Issues, Grrr!, Real Estate
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