Image From ..CNBC
On July 1st, our Chief Oil Analyst, Tom Kloza, answered some questions asked to our @GasBuddy Twitter account. In case you missed the half-hour conversation, below is an edited transcript, along with some additional questions answered.

 Q: How come prices keep rising? Will the storm off Florida affect prices?

Tom Kloza, Chief Oil Analyst at Hurricanes always destroy demand. They rarely, but sometimes violently impact supply. This one should only impact demand.

 Q: How much profit does a gas station make at the pump from gasoline?

TK: Just about 15cts gross margin, but 10cts or more goes to credit card companies and overhead.

 Q: We’ve owned very fuel efficient vehicles since the early 2000’s. Where do you see current diesel prices in LA area?

TK: There is more upside to diesel than to gasoline because diesel is the world’s fastest growth fuel. Prices now are around $4.20 in LA but they could go much higher in the winter months of 2014-2015.

Q: Ouch! Best price I find these days is $3.87 in Anaheim. The problem? Only 2 diesel pumps attached to a gas pump; I wait longer now.

TK: California has actually seen wholesale gas prices back off this week – patience may pay off for gas there.

Q: Would Keystone XL pipeline help with lowering gas prices?

TK: No. Keystone may make sense for later in the decade, but the lack of pipeline is NOT impacting prices these days – only politics.

 Q: You say you’ll “take the under” on gas prices in the 2nd half of 2014. Why? Is that the usual trend or is something else affecting it?

TK: Once Sep. 15th comes, the formulae for baking the “gasoline cake” changes – easier to make, and prices drop with lower demand.

 Q: I’m driving all over this weekend. Is there a best time of day to fill up?

TK: No real difference in time, although some states allow multiple price changes, and cheaper prices are in opposite flow lanes. In other words, the incoming commuter traffic can see prices higher than the less active lanes – e.g. Texas.

 Q: I moved to OH 8 years ago. Why does gas here move in huge steps up then slowly down? $3.89 two weeks ago, some are in $3.30’s now.

TK: Great Lakes markets have the most volatile spot, or bulk, markets. They move with Chi pipeline – bulk down 10cts in last week there.

 Q: How low can we expect gas prices to go over the next couple of months?

TK: Flat forecast for the next couple of months – maybe down 5cts in next 10 days. Beware Aug. hurricane season, however.

 Q: Are you tracking the new CARB mandated gas price increase that is set to hit on Jan. 1, 2015 in California?

TK: Yes; it looks as though that will translate into a 15cts/gal cost-of-business hike for CA consumers.

 Q: Why is the Great Lakes region so volatile?

TK: Almost all the fuel comes from local refineries; when a refinery or two has issues, the price can quickly change. When those refineries restart or come back from maintenance, prices can quickly drop. Just-in-time inventory practices can lead to just intolerable brief spikes, or just in the nick-of-time price drops.