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

[SuperMatt]

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.

Looking at this (not sure of its accuracy), it looks like America is producing about 14% of the oil.

List of countries by oil production - Wikipedia

en.wikipedia.org

As for countries giving discounts to their people, look at the per capita production. Saudi Arabia is about 10x more per capita.

Oil is a global commodity. Even if America upped its production, it would not make enough of a difference when you see that Russia produces almost the same amount of oil as America. Can you imagine the price explosion if the world stopped buying oil from America? Well, that’s happening with Russia right now.

 

[Chew Toy McCoy]

Looking at this (not sure of its accuracy), it looks like America is producing about 14% of the oil.

List of countries by oil production - Wikipedia

en.wikipedia.org

As for countries giving discounts to their people, look at the per capita production. Saudi Arabia is about 10x more per capita.

Oil is a global commodity. Even if America upped its production, it would not make enough of a difference when you see that Russia produces almost the same amount of oil as America. Can you imagine the price explosion if the world stopped buying oil from America? Well, that’s happening with Russia right now.

I'll concede it would be harder to distribute the savings given our population, but per capita also assumes every citizen is driving a car and that's not the case.

I put this in its own thread but I'll also put it here to apply to the oil industry.

Study Shows Excess Corporate Profits in the US Have Become 'Widespread'

A new research paper finds that corporate price markups and profits jumped to their highest levels in seven decades last year.

www.commondreams.org

The administration has been preaching "the Putin tax" for 5 MONTHS as the leading cause. It's not and everybody knows it. The oil industry reflexively raised prices at the first shot fired and has continued to. Like I said before, the oil industry has openly admitted its largely shareholder demands to raise profits. Now we're just getting around to threatening a profit tax, and gee, prices have dropped slightly. Sometimes I think Democrat politicians think their voters are just as stupid as Trump supporters but they are a lot more polite about their deflections and lies.

 

[Apple fanboy]

Reading this thread does remind me I need to charge my EV……at work……for free tomorrow

 

[Chew Toy McCoy]

Since we’re done caring about Ukraine I’ll just put this here.

Russia's ruble is the strongest currency in the world this year

After its value plunged to less than a U.S. penny, the ruble is now trading 40% higher than before Russia attacked Ukraine. Why?

www.cbsnews.com

So, mission accomplished?

It seems like when they said we are going to have to sacrifice at the pump because of the war in Ukraine they forgot to mention it's because we'll be funding Russia's side. Silly clerical error.

 

[JayMysteri0]

But will it make a difference?

President Biden to Propose 3-Month Suspension of Federal Gas Tax

When the tax is just $0.18 per gallon, how much will consumers really notice? And what's to stop oil companies from raising prices again?

gizmodo.com

President Joe Biden will ask Congress to suspend the federal gasoline tax for three months in a speech on Wednesday afternoon, according to a new report from the New York Times. The nationwide average for a gallon of gas recently topped $5.00, though the average in some states like Calfornia is more like $6.38 per gallon, according to the L.A. Times.

The U.S. federal government currently taxes fuel at 18 cents per gallon for gasoline and 24 cents per gallon for diesel and President Biden’s proposal to Congress would give drivers temporary price relief through September.

One of the considerations taken by the White House, according to the New York Times, is this November’s midterm elections. President Biden won’t be on the ballot, but plenty of Democrats face tough challenges. The U.S. economy is faring pretty well by just about every traditional measure, with low unemployment, rising wages, and solid growth, but inflation and soaring fuel costs are taking a huge bite out of the wallets of everyday Americans.

Biden will also encourage states to suspend their own gas taxes, which can vary widely across the country. Pennsylvania has the highest gas tax in the state, at $0.57 per gallon, while states like Florida tax gasoline at just $0.19 per gallon.

The U.S. isn’t the only country that’s tried a temporary gas tax holiday in recent months. Australia cut its federal gas tax in half from 44 cents to 22 cents per liter, which expires in September. Germany also cut taxes on fuel following Russia’s invasion of Ukraine, which has sent price shocks around the world not just on gas, but common foods.

As the New York Times points out, many economists don’t think a federal gas tax would do much to help consumers save money, since the $0.18 federal tax doesn’t rise and fall as a percentage of the total value of the gas. It’s just a flat rate that very few people will likely notice at a time when a gallon costs $5.00.

What’s to stop the oil companies from just jacking up prices even more to make up for the sudden drop that might occur during a gas tax holiday? White House officials have apparently anticipated that and have “a plan” according to the New York Times. But you’ll have to wait until Biden’s official announcement later today.

Some people are going to bitch about Biden & not the oil companies, because that's what they've been told to do. For others that .18 isn't the issue, when a state's gas tax can be almost 4X that. And as we've said over & over, there's nothing to stop oil companies from getting that .18 cents for themselves with another price hike.

 

[Chew Toy McCoy]

But will it make a difference?





Some people are going to bitch about Biden & not the oil companies, because that's what they've been told to do. For others that .18 isn't the issue, when a state's gas tax can be almost 4X that. And as we've said over & over, there's nothing to stop oil companies from getting that .18 cents for themselves with another price hike.

Some dipshit economists think people saving $0.18 per gallon is going to cause people to go on a spending spree that will keep inflation up. I don't know why we continue to listen to assholes who don't think the struggles of over 50% of the country actually exist.

"When I spent $2.76 total less at the pump last week I went out and bought another big screen TV I don't need. Woot!"

 

[SuperMatt]

But will it make a difference?





Some people are going to bitch about Biden & not the oil companies, because that's what they've been told to do. For others that .18 isn't the issue, when a state's gas tax can be almost 4X that. And as we've said over & over, there's nothing to stop oil companies from getting that .18 cents for themselves with another price hike.

There is no way for Biden to win with the right. I looked at the Fox website and they’ve got about 5 stories already created that attack him IF he initiates a gas tax holiday: either it’s “unserious” or will lead to “more inflation” according to them. It doesn’t matter what he does or doesn’t do; their starting point is “Let’s Go Brandon” and nothing else matters.

 

[Herdfan]

Might not matter.. Manchin is a No!

 

[SuperMatt]

Might not matter.. Manchin is a No!

If gas prices get high enough, his coal-powered car company idea will finally get off the ground.

 

[Chew Toy McCoy]

Might not matter.. Manchin is a No!

He was starting to look gaunt and deflated from being out of the national spotlight for a bit. I'm sure he enthusiastically welcomed this rejuvenating opportunity. Nothing is more life-affirming than pissing off the bulk of the country. He really should switch parties. That's pretty much their entire platform, a real opportunity to thrive.

 

[SuperMatt]

He was starting to look gaunt and deflated from being out of the national spotlight for a bit. I'm sure he enthusiastically welcomed this rejuvenating opportunity. Nothing is more life-affirming than pissing off the bulk of the country. He really should switch parties. That's pretty much their entire platform, a real opportunity to thrive.

Gotta love the GOP.

They can’t stop complaining about high gas prices and blaming Biden. But when Biden proposes a temporary tax cut, they just scream “Let’s Go Brandon!” And leave a flaming bag of dog poop on the White House porch.

They are so completely and utterly full of and I’m sick of it. What a -show.

 

[Herdfan]

Gotta love the GOP.

They can’t stop complaining about high gas prices and blaming Biden. But when Biden proposes a temporary tax cut, they just scream “Let’s Go Brandon!” And leave a flaming bag of dog poop on the White House porch.

They are so completely and utterly full of and I’m sick of it. What a -show.

Given that this sort of what did Obama call it? Gimmick, that's it. Can cause even more inflation, maybe they are doing what is best for the country overall and don't really care how that impacts Brandon.

Biden's Gas Tax Cut Could Help Democrats, But Make Surging Inflation Worse

A gas tax cut won't do much to fix high prices driven by a supply shock. Experts warn it could actually make inflation worse.

www.newsweek.com

It's a Newsweek article. Not sure if it makes the cut of acceptable sources.

Oh, here's one from NPR. I know it's acceptable.

Biden wants a gas tax holiday. Some economists say that's a bad idea

Biden wants Congress to give people a break on the federal gas tax for the summer. But economists say that won't translate into big savings at the pump — and could hurt efforts to curb inflation.

www.npr.org

But go ahead and blame the GOP.

 

[SuperMatt]

Given that this sort of what did Obama call it? Gimmick, that's it. Can cause even more inflation, maybe they are doing what is best for the country overall and don't really care how that impacts Brandon.

Biden's Gas Tax Cut Could Help Democrats, But Make Surging Inflation Worse

A gas tax cut won't do much to fix high prices driven by a supply shock. Experts warn it could actually make inflation worse.

www.newsweek.com

It's a Newsweek article. Not sure if it makes the cut of acceptable sources.

Oh, here's one from NPR. I know it's acceptable.

Biden wants a gas tax holiday. Some economists say that's a bad idea

Biden wants Congress to give people a break on the federal gas tax for the summer. But economists say that won't translate into big savings at the pump — and could hurt efforts to curb inflation.

www.npr.org

But go ahead and blame the GOP.

I am blaming them for their own rhetoric, not for the gas crisis, which is a worldwide phenomenon. Cutting the gas tax is about the only thing that can be done.

Trust me, the Republicans don’t care about the larger economic impacts. Every economist everywhere knew the Trump tax cuts were unnecessary and a redistribution of wealth to the rich, and they were rubber-stamped by every single Republican anyway.

Meanwhile, they’ve offered no solutions of their own for the crisis. Any nonsense about more drilling or pipelines would have no effect for years.

Sit back and blame Biden, and when he offers even a small solution, they take a dump on it and offer no alternative. It is the only thing they know how to do.

 

[Eric]

Might not matter.. Manchin is a No!

I've just come to think of him as a "Yes" for all things Republican. Not that I even begrudge him for voting his beliefs but what was the point of running for a party you don't support on 95% of the issues, did he just think they wouldn't have elected him with the R in front of his name?

 

[Chew Toy McCoy]

Given that this sort of what did Obama call it? Gimmick, that's it. Can cause even more inflation, maybe they are doing what is best for the country overall and don't really care how that impacts Brandon.

Biden's Gas Tax Cut Could Help Democrats, But Make Surging Inflation Worse

A gas tax cut won't do much to fix high prices driven by a supply shock. Experts warn it could actually make inflation worse.

www.newsweek.com

It's a Newsweek article. Not sure if it makes the cut of acceptable sources.

Oh, here's one from NPR. I know it's acceptable.

Biden wants a gas tax holiday. Some economists say that's a bad idea

Biden wants Congress to give people a break on the federal gas tax for the summer. But economists say that won't translate into big savings at the pump — and could hurt efforts to curb inflation.

www.npr.org

But go ahead and blame the GOP.

In this situation I don’t think it really matters what the source is because this is one of the few things corporate media of both sides agrees on, defend corporate profits by any means at all costs. Either don’t mention it at all or blame everything else but it as the primary cause. Most people blasted through their stimulus a long ass time ago and even if you wanted to blame that as the primary cause – rent, food, and gas also started going up a long ass time ago. It’s nowhere related to where we are now.

 

[Chew Toy McCoy]

Gotta love the GOP.

They can’t stop complaining about high gas prices and blaming Biden. But when Biden proposes a temporary tax cut, they just scream “Let’s Go Brandon!” And leave a flaming bag of dog poop on the White House porch.

They are so completely and utterly full of and I’m sick of it. What a -show.

If there's one thing Republicans are deadset against its tax breaks or cuts. I challenge you to find any evidence to the contrary. Finding evidence that existed more than 10 minutes ago is fake and planted by Antifa and the radical left.

 

[Herdfan]

I've just come to think of him as a "Yes" for all things Republican. Not that I even begrudge him for voting his beliefs but what was the point of running for a party you don't support on 95% of the issues, did he just think they wouldn't have elected him with the R in front of his name?

He is an old school Dem, not one of the newer Progressive Dems who simply do what Schumer tells them.

He would win with any letter beside his name.

I am blaming them for their own rhetoric, not for the gas crisis, which is a worldwide phenomenon. Cutting the gas tax is about the only thing that can be done.

So you're good with it if it causes even higher inflation?

 

[Eric]

He is an old school Dem, not one of the newer Progressive Dems who simply do what Schumer tells them.

To be fair even old school dems took the side of massacred children instead of defending the guns used to slaughter them.

 

[Chew Toy McCoy]

Cutting the gas tax is about the only thing that can be done.

No it's not. Price controls. They want to make more of a profit they're just going to have to pump more oil. Then maybe when they can prove they are capable of being a good corporate citizen (which they somehow qualify as legally) we can talk about losing that up.

Nobody with a realistic long-term outlook, including those in the oil industry, believes increasing the supply temporarily is going to completely derail green energy going forward. They know the writing is on the wall. They just want to milk the profits as long as possible as they transition.

 

[Herdfan]

No it's not. Price controls. They want to make more of a profit they're just going to have to pump more oil.

Not sure all of the price at the pump is related to availability of oil. Some of it is a lack of refining capacity. Oil has been this high, or higher before and gasoline prices were lower than they are now.

Let a Hurricane loose in the gulf that closes some refineries and we will be looking at even higher prices.

Nobody with a realistic long-term outlook, including those in the oil industry, believes increasing the supply temporarily is going to completely derail green energy going forward. They know the writing is on the wall. They just want to milk the profits as long as possible as they transition.

Oil is not going away. Unless we find a way to live without plastic. And asphalt. And heating oil. And large farm and earth moving equipment. None of those are going electric anytime soon.

Plus, there is India and China and other 3rd world countries who aren't doing the green thing. Plenty of outlets for them.