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

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Herdfan said:
Well, you didn't dispute my data, so I will take the win. ;)

I have my thoughts on the reasons for the recession, but that is for another thread lest @SuperMatt chastise me for going off-topic.
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Mostly because of the ridiculousness of anyone who lives in a world of Fox News saying something like this:
So no we DON'T all know it was due mostly to the war in Ukraine. You and your bubble may believe that, but it simply isn't true.
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There is no way anyone who makes a statement like that can be reasoned with, so I just chose a different path. :)
 
Herdfan said:
Really? Plays well with the media, but it isn't even close to accurate.

Gas Prices from the EIA.gov website:

1/18/21 - $2.464 - Week Biden was inaugurated
2/28/22 - $3.701 - Week Russia invaded Ukraine
6/13/822 - $5.107 - Peak

So please explain how the war in Ukraine had anything to do with the $1.237 increase before the war even started.

So no we DON'T all know it was due mostly to the war in Ukraine. You and your bubble may believe that, but it simply isn't true.
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You’ve compared 13 months of increases to 3.5 months of increases. You’ve also failed to acknowledge that gas prices crashed during the pandemic due to everybody staying home. The price of gas gradually increased as more people started going back to work as vaccines rolled out widely in early 2021. This is general knowledge.

Inflation during the return to work and increased consumption paired with supply chain disruptions pushed the price up a bit further than might have been expected.

You’ve also manipulated the choice of data, picking Feb 28th as the start of the ”Russia” spike; the invasion was the 24th. For a fair comparison, you should have picked the prior week as your starting point for the spike, not 4 days after the invasion. That would put the price at $3.50 - 20 cents lower. Meaning the return to work from the pandemic and the supply chain inflation pushed gas up $1.03 in 13 months. Perhaps Biden could have mitigated that slightly, but it’s definitely within expectations considering the circumstances.
 
It said on our news yesterday that we can expect up to a 20p per litre reduction on our petrol and diesel in the next couple of weeks. However, they said we will likely see a 50% again in October. So just as the winter energy bills are crippling families financially, the cost of fuel means many will struggle to afford getting to work.
 
The-Real-Deal82 said:
It said on our news yesterday that we can expect up to a 20p per litre reduction on our petrol and diesel in the next couple of weeks. However, they said we will likely see a 50% again in October. So just as the winter energy bills are crippling families financially, the cost of fuel means many will struggle to afford getting to work.
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I heard the Nordstream gas pipeline is back online but only at 30-40% capacity. So I imagine gas for heating/cooking will be expensive in Europe this fall/winter.
 
SuperMatt said:
I heard the Nordstream gas pipeline is back online but only at 30-40% capacity. So I imagine gas for heating/cooking will be expensive in Europe this fall/winter.
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It’s already expensive seeing an average 250% increase in the last 2 months. This is due to increase again come winter apparently which is going to force a lot of people into poverty. I’ll be keeping my heating off as much as I can bear.
 
The-Real-Deal82 said:
It’s already expensive seeing an average 250% increase in the last 2 months. This is due to increase again come winter apparently which is going to force a lot of people into poverty. I’ll be keeping my heating off as much as I can bear.
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Absolutely. But you can’t live without heating.
We have maximised the efficiency of our home.
Insulation
Underfloor heating
Modern A+ rated boiler
What more can I do.
 
Apple fanboy said:
Absolutely. But you can’t live without heating.
We have maximised the efficiency of our home.
Insulation
Underfloor heating
Modern A+ rated boiler
What more can I do.
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Windows and air penetrations.

Insulation in and of itself is good, but not great. Putting a layer of fluff in an attic but not sealing all air penetrations won't get you where you want to be. They need to be sealed with spray foam.

Get a blower door test done. Will show you where you need to spend your money. Or get a home inspector with a FLIR to point out the hot and cold spots in your home.
 
Herdfan said:
So no we DON'T all know it was due mostly to the war in Ukraine. You and your bubble may believe that, but it simply isn't true.
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No, current gas prices aren't due primarily to the war in Ukraine, though the war is a contributing factor to our current high gas prices. It was a kick in the ribs while we were already down.
 
Herdfan said:
Windows and air penetrations.

Insulation in and of itself is good, but not great. Putting a layer of fluff in an attic but not sealing all air penetrations won't get you where you want to be. They need to be sealed with spray foam.

Get a blower door test done. Will show you where you need to spend your money. Or get a home inspector with a FLIR to point out the hot and cold spots in your home.
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My home is 60 years old, so based on the reports we have had done we have taken it as far as we can.
Windows were also replaced.
 
Apple fanboy said:
My home is 60 years old, so based on the reports we have had done we have taken it as far as we can.
Windows were also replaced.
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So is my parent's.

When it was being inspected, the inspector noted there was some disconnected ductwork in the crawlspace. Nope! It was a piece of ducting pointing to where the old kitchen sink had been on an outside wall. It was there to provide heat to keep the pipes from freezing. Ah, the days of cheap energy.
 
Remember when they over produced gas and the prices fell to bargain basement prices? I think the Ukrainian War is just a way for the market to make up for that and price gouge us. :unsure:
 
Apple fanboy said:
Not even remotely surprised. If only the profits could be caped.
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I know you meant capped, but I just can’t help myself:

1659463481430.png

America’s true Super Hero!
 
Screen shot taken from Flipboard. I don’t know which way the New York Post leans but they seem to have a different take from others that are getting lumped together on the same topic.

4940D001-4BA5-4238-AC78-30FFAD72F272.jpeg
 
The “bad news” is that inflation is still high compared to a year ago. So people are still hurting.

The “good news” is that it isn’t worse than a month ago. So it’s possible to get in under control, and we could very well be spared really bad numbers.

So different outlets can spin it different ways depending on how they present the numbers.

This is a weird economic situation. High inflation, good hiring numbers, but a still-broken supply chain and pent up demand. I don’t think anything like this has really existed in the US at any point since the start of the 20th century.
 

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