Why are gas prices so high (and why do they keep climbing)?

[Eric]

I'll take the 14¢ spread for Diesel over Regular, but at $4.99, not $7.15

Our spread is around $1. Of course ours doesn't smell like french fries.

Following them always makes me hungry lol.

 

[throAU]

Saw yesterday somewhere that there's tanker congestion in the north sea (and probably elsewhere) area due to China being in lockdown. Essentially there are a lot of parked tankers due to port capacities being stretched with layed up boats not able to travel to China.

Certainly won't be helping. If you can't transport oil, doesn't matter the cost to produce, the supply gets constrained and prices go up.

e.g.

China Port Congestion Leaves Everything From Grains to Metals Stranded

Dotting the sea off Chinese ports are 477 bulk cargo ships waiting to deliver resources from metal ore to grain into the country.

www.bloomberg.com

Ditto for the impact to the cost of everything else. Transport availability is massively constrained at the moment, you may have noticed with delays to shipping, etc.

As an aside, i paid $2.40 (Australian) per LITRE for premium high octane (98 RON - equiv to 93-94 octane in the states as you measure via PON i think) fuel on Friday.


Also...

What China COVID spike, massive lockdowns mean to shipping

COVID lockdowns haven’t closed Chinese ports yet. If they do, U.S. importers face “shockwave” of higher rates and delays.

www.freightwaves.com

It's not just China congsted. Everywhere else is too, either due to handling shipments that were originally for China, or transport constrained due to the ships that could otherwise be moving, transporting stuff being parked offshore waiting for dock space to unload/load.

 

[The-Real-Deal82]

For the first time ever I have seen a garage forecourt with fuel priced at £2.00 a litre (£9.10/$11.14 a gallon).

 

[Apple fanboy]

For the first time ever I have seen a garage forecourt with fuel priced at £2.00 a litre (£9.10/$11.14 a gallon).

That’s tough. I’ve got to put some in Mrs AFB car. Half filling it should do her until we get rid of it.

 

[SuperMatt]

I need to rent a car for a 300-mile (each way) trip (plus possible detours/diversions), and Hertz is just a few blocks away. They have Teslas so I will rent one of those. The rental cost is slightly higher than the gas-powered ones, but when you factor in charging vs buying gas, it will be cheaper I think.

 

[Herdfan]

I need to rent a car for a 300-mile (each way) trip (plus possible detours/diversions), and Hertz is just a few blocks away. They have Teslas so I will rent one of those. The rental cost is slightly higher than the gas-powered ones, but when you factor in charging vs buying gas, it will be cheaper I think.

Keep your receipt where you turn it in.

Dozens of customers allege Hertz had them falsely arrested over rental cars reported stolen: "It was just terrifying"

The car rental giant, which recently emerged from bankruptcy, insists virtually all of the claims are "meritless" and says they should not be allowed to proceed for various technical reasons.

www.cbsnews.com

 

[hulugu]

Keep your receipt where you turn it in.

Dozens of customers allege Hertz had them falsely arrested over rental cars reported stolen: "It was just terrifying"

The car rental giant, which recently emerged from bankruptcy, insists virtually all of the claims are "meritless" and says they should not be allowed to proceed for various technical reasons.

www.cbsnews.com

What. The. Actual. Hell.

 

[throAU]

For the first time ever I have seen a garage forecourt with fuel priced at £2.00 a litre (£9.10/$11.14 a gallon).

To be fair those are "proper" UK imperial gallons, not USA spec smaller gallons. So think what... 7 pounds per US gallon


(and this, kids is an example of why metric. because your "imperial" or "standard" (lol) units... aren't even standard amongst their own names for things)

 

[JayMysteri0]

What. The. Actual. Hell.

Yeah, it kicked off with the story of a man who couldn't get Hertz to cooperate in his defense.

Don’t rent from Hertz

If you need a receipt, it might be a few years before you get it... https://www.wlns.com/news/exonerated-after-nearly-5-years-man-sues-hertz-over-alibi-documents/

talkedabout.com

From there once the eyeballs were on them, attention turned to their shenanigans with people who rented & returned their vehicles.

Don’t rent from Hertz

If you need a receipt, it might be a few years before you get it... https://www.wlns.com/news/exonerated-after-nearly-5-years-man-sues-hertz-over-alibi-documents/

talkedabout.com

 

[Herdfan]

Yeah, it kicked off with the story of a man who couldn't get Hertz to cooperate in his defense.



From there once the eyeballs were on them, attention turned to their shenanigans with people who rented & returned their vehicles.

And @SuperMatt, you're still willing to rent from them when you started a thread about how they did this. You are the optimist for sure.

 

[JayMysteri0]

And @SuperMatt, you're still willing to rent from them when you started a thread about how they did this. You are the optimist for sure.

 

[JayMysteri0]

https://www.twitter.com/i/web/status/1539080689131433984/

So, IF gas prices do begin to drop will it be attributed to Biden as well?

 

[The-Real-Deal82]

My local petrol station is now charging 202.9p per litre for diesel. Not many locals fill up there though as it’s renowned for being very expensive. Asda just a few miles further is 194.9.

I don’t think these prices will ever go back to what they were a few months ago. I reckon the least they will be is 170 a litre once things die down and the government will try and tell us that’s cheap.

 

[JayMysteri0]

My local petrol station is now charging 202.9p per litre for diesel. Not many locals fill up there though as it’s renowned for being very expensive. Asda just a few miles further is 194.9.

I don’t think these prices will ever go back to what they were a few months ago. I reckon the least they will be is 170 a litre once things die down and the government will try and tell us that’s cheap.

Here in the States I think that's a reality more people will have to contend with. As long as oil companies don't face any consequences ( unless there's another pandemic forcing people NOT to travel ) for raising prices, instead it becomes a political tool to bash a side giving oil companies cover. Price volatility will continue to be a thing. I also think because of the culture / marketing here, people will still continue to buy vehicles that require lots of gas, then complain again when gas prices inevitability rise again.

I'm not sure how many warnings we need before more people accept that this is not tenable.

 

[Joe]

It's gone down a little. The highest I saw was $4.99. It's now down to $4.42

 

[JayMysteri0]

https://www.twitter.com/i/web/status/1538731909685161985/

Reality:
https://www.twitter.com/i/web/status/1539104012129402880/

Also, you have to love what Twitter thinks is sensitive content

This is the photo Twitter is protecting people from.

 

[JayMysteri0]

To wrap up for the day

 

[SuperMatt]

Gas prices are high worldwide. It’s clearly not just an American problem, so how can it be Biden’s fault?

 

[Joe]

Gas prices are high worldwide. It’s clearly not just an American problem, so how can it be Biden’s fault?

It's easy to blame the current administration. Most people are stupid and don't research or understand basic concepts on how things work.

 

[Chew Toy McCoy]

Gas prices are high worldwide. It’s clearly not just an American problem, so how can it be Biden’s fault?

While I agree for the most part, the US produces 18.6% of the world’s oil and is the biggest oil producing country in the world. There are other oil producing countries in the world (smaller production based on what I just said) where one of the perks is really low gas prices because they produce so much. Yes, we’re paying less than Europe but the US propagandists have a nasty habit of pointing out worst case examples and going “Well at least we’re not like them” as if that’s the only possible alternative and is done entirely in the service of those who profit the most from the status quo.

So probably any other US President wouldn’t do much differently but somebody like Trump would be a lot more vocal and threatening if he saw it causing him to slide in the polls or lose votes.