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

Citysnaps

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The oil companies use all kinds of excuses to rationalize why gas prices haven't been tied to oil prices for what? The last 20 years now?

They're reporting the major bump in pricing in the west is due to two refineries being shut down for month-long maintenance - one in Alberta and one in Washington state. Usually doesn't cause a problem as demand ebbs in September...but it didn't this year - demand continues to be high, but supply is constrained.

But, once that maintenance is done, I'm sure they'll have another red herring that they can point at to explain their ridiculous gouging of us.

I love the crowd-pleasing justification, "We're now having to switch to our winter gasoline blend" from the oil companies. And of course there's a similar price increase justification for switching to their "summer blend" in the summer.

I'm surprised Starbucks hasn't tried that.
 

Herdfan

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With OPEC+ meeting to possibly lower output by 1MB/day, prices will being going back up.

Guess that whole fist-bump with MBS is going to come back to haunt Biden.
 

Chew Toy McCoy

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With OPEC+ meeting to possibly lower output by 1MB/day, prices will being going back up.

Guess that whole fist-bump with MBS is going to come back to haunt Biden.


We’re seeing the implosion of capitalism, the negative aspects overwhelming the positive from a ruling class that despite receiving the lion’s share of the benefits for decades resents the rest of us who they’ve exploited to achieve their control and status. We’re just waiting for them to announce the new status symbol (was the iPhone) that they can assign as proof we’ve had it way too good for too long. Never mind what they own or have amassed. That’s all off the judgement table.
 

Herdfan

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OPEC+ cut production by 2M/day.

Look out as gas will go up quickly. I can see prices up $1 in less than a month. Just in time for midterms.
 

Chew Toy McCoy

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OPEC+ cut production by 2M/day.

Look out as gas will go up quickly. I can see prices up $1 in less than a month. Just in time for midterms.

That's not how it works. They'll shoot up by tomorrow and then take 6 months or more to slowly go down regardless of world or market conditions.

Where I live I feel like I'm paying more now than when the initial "Putin tax" hit despite barrels being at a low. Conveniently "resulting lower cost will happen in the future", but it won't at all because of this week's bullshit.
 

lizkat

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It's us, basically. When gas prices went down in recent decades and then climbed back up, especially as the economic recovery from the Great Recession proceeded, US companies were already quitting manufacture of little gas-sipping hatchbacks. Oh they were still manufactured in like Mexico but only sold in Europe. All that most people in the USA wanted any more were tank-like SUVs and trucks, and the people who haven't switched to EVs, that still seems to be what they want -- and those things are still gas hogs no matter the advertised boost in miles per gallon. Maybe it's because we drive so aggressively in the USA and figure the more metal caging that's around us in case of a crash, the better.

The other thing is that the USA has never seriously promoted use of public transportation and so has never invested enough in it to make people seriously consider the tradeoffs in convenience and expense; given a choice, we opt for "convenience" of private transportation EVEN THOUGH we have to put up with potholes in the roads, traffic jams that are unbelievable, taxpayer expense of freeway lane expansions that only alleviate traffic issues for a year or two... and the insane cost of housing one's vehicle in an urban environment, never mind juggling the rules about where you can even drive a car in some cities.

True absurdity: Tack on a gas hike to all that and we complain about THAT instead, even as we celebrate an dubiously inalienable right to own a car and go where we want when we want to.
 

Herdfan

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Nobody (everybody) suspects Jared Kushner!

Cause the Saudi's are certainly going to do what the Jew wants. ;) :ROFLMAO:

That's not how it works. They'll shoot up by tomorrow and then take 6 months or more to slowly go down regardless of world or market conditions.

I know. A family my daughter swam with owned a few c-stores. He was trying to get me to go in with him to buy a tanker so he could get gas from somewhere in the south cheaper. So as part of talking to him, he explained why prices go up quickly, but down slowly.

For :poop: & :ROFLMAO:, let's say his tank held 10,000 gallons and the wholesale price was $3.00. So it would cost him $30K to refill it. On day 1 he sold 5,000 gallons. He wakes up on day 2 and notices the wholesale price has gone up to $3.10. So he will need $31,000 to refill his tank. He needs to make $15,000 + $1,000 with the remaining 5,000 gallons. So the price goes up 20 cents, not just the 10 cents the wholesale price went up to allow him to recover his full costs. He gets his $31,000 delivery on day 3. On day 4 he notices the wholesale price has gone down to $2.95. He checks local stations to see if they have dropped. If they haven't he won't until they (they being large branded stations) do. Eventually they will go down and he will follow. He makes more money with falling prices than he does with rising prices.
 

Herdfan

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I guess they do. :(


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thekev

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It's unlikely that oil prices alone are enough to push it this high. Much of it seems speculative. We had extremely high oil prices in parts of 2008. Gas are considerably higher today.

 

Chew Toy McCoy

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While I understand the desire to blame Biden and/or Democrats for the current situation with Saudi Arabia, I fail to see how Republicans would handle things differently, other than complete capitulation to their every demand. And if that is the case, I can also understand a good percentage of Americans going “They’re not shitting in my backyard. So why I should care?” Also the right isn’t exactly champions of women’s rights at this point in history. So they probably couldn’t give less of a damn about how women are viewed and treated there.

The timing of this is 100% to fuck with American political stability. Period. And the connections to Trump and his family are well known. “America first!” has its limits. For some being another country’s bitch is perfectly acceptable if it helps their side win politically.
 

Herdfan

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While I understand the desire to blame Biden and/or Democrats for the current situation with Saudi Arabia, I fail to see how Republicans would handle things differently,

They may not have been able to handle things differently with SA.

But they would also have made sure we are producing as much oil locally as we could reducing our reliance on foreign oil.
 

Chew Toy McCoy

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They may not have been able to handle things differently with SA.

But they would also have made sure we are producing as much oil locally as we could reducing our reliance on foreign oil.

I've heard it suggested that one solution in the US, or temporary solution, is to ban US oil exports, but I also don't know how realistic that is in execution or effect. Isn't refining the oil a major issue in the US, not so much production?

Another example I heard of Biden "stepping in it" with the situation, is the group attempting to sue MBS over the killing of the journalist (good luck with that) asked the courts if they considered him to have diplomatic immunity. The Biden administration should have just said they aren't going to weigh in on it, but instead they asked for a 45 day extention. Now they have to weigh in on it which shows they are deeply involved.
 

Chew Toy McCoy

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Here’s an idea. Tell Saudi Arabia we can no longer supply them with weapons for their genocide escapade because we are supplying them to Ukraine. They might want to take up that situation with their friend Putin who consequently can’t supply them with weapons either for similar reasons. Sorry, not sorry.
 
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I've heard that kind of thing from a lot of people and it's BS. California gas has always been higher than the national average, due to regulations and taxes. It has never been this much more than the national average. And it's disappointing that the only explanation I'm hearing, whether it's from Biden or other Californians, is "it's always high cause taxes". IT'S NEVER BEEN THIS HIGH. 🤦‍♂️

That said, the people who act like oil companies have nothing to do with gas prices are fucking stupid too. Of course oil companies are going to act like they're innocent and have no ability to set prices and blame everything on regulations.
 
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Yoused

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That said, the people who act like oil companies have nothing to do with gas prices are fucking stupid too. Of course oil companies are going to act like they're innocent and have no ability to set prices and blame everything on regulations.

And the Democrats will never do anything meaningful to rein them in or impose proper taxation.

Reality is, our motor fuel prices have been absurdly low for many decades. We should have had at least $5 gas at the turn of the century, and that still would have been too low. It is so heavily subsidized, because big oil straight up owns the government, that $8 fuel should be a bargain today.
 

Chew Toy McCoy

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The return of rising gas prices is a conspiracy by the manufacturers of the "I did that" Biden decal, a new and powerful industry disrupter and lobbying group.
 
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