Economy

thesquanderer

(12,686 posts)

20. True. But also, there's a lag between falling oil price and falling gas price,

Reply to multigraincracker (Original post)

Wed Jul 6, 2022, 08:50 AM

Jul 2022

because gas stations (and the refineries who are warehousing it on the way to the gas stations) sell the gas they have based on what they already paid for it.

When oil goes up, gasoline companies may (or may not) raise their prices some based on anticipating what it will cost them to replenish... but once they own the gasoline, they are loathe to lower the price until they get their profit on the stuff they own that they have already paid the earlier higher price for. Welcome to capitalism, heads you lose, tails we win!

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I seem to remember the last time oil was $100/barrel, [View all] multigraincracker Jul 2022 OP

Add the taxes added since then. jimfields33 Jul 2022 #1

I doubt if they are more than a dime more than a few years ago. multigraincracker Jul 2022 #2

Perhaps. But salaries went up. Cost of refining certainly did. jimfields33 Jul 2022 #3

Then why do we see gas at one station 4.48 Beachnutt Jul 2022 #4

3.99 at costco greymattermom Jul 2022 #14

Costco sells at a discount to their members IronLionZion Jul 2022 #16

If no one buys gas at the ones charging a lot more... MichMan Jul 2022 #17

Much depends on hedging, delivery dates, and quantities Bernardo de La Paz Jul 2022 #27

A lot of these stores have a savings card..... Historic NY Jul 2022 #32

Inflation at almost 9%. multigraincracker Jul 2022 #5

A number of companies have actually been reporting a percentage increase in profits cstanleytech Jul 2022 #10

Refining went up since they shuttered refineries kwijybo Jul 2022 #29

Did the taxes go from zero to .62 and zero to .52? I think doc03 Jul 2022 #6

Taxes were already factored in, though moose65 Jul 2022 #15

"Pennsylvania 52 cents a gallon" (nope) BumRushDaShow Jul 2022 #19

Just remember Cherokee100 Jul 2022 #7

Capitalism is not based on supply and demand..... multigraincracker Jul 2022 #8

"It's base on what the market will bear." More like its based on how much cstanleytech Jul 2022 #11

Bingo and pay multigraincracker Jul 2022 #12

What the market will bear is based on supply and demand. Indirection failed. . . . nt Bernardo de La Paz Jul 2022 #30

Only if you or I Maine Abu El Banat Jul 2022 #9

Time to tax the oil companies for their excess profits on congressmembers. lastlib Jul 2022 #13

It sure used to be a lot cheaper filling up your car with crude oil than it is now. MichMan Jul 2022 #18

So you are going to try again BumRushDaShow Jul 2022 #25

Analysis of the price of a manufactured product based solely on raw material costs is simplistic MichMan Jul 2022 #34

True. But also, there's a lag between falling oil price and falling gas price, thesquanderer Jul 2022 #20

Seems like when it goes up, multigraincracker Jul 2022 #21

I don't see how a windfall profit tax will help us in the midterms KS Toronado Jul 2022 #22

This message was self-deleted by its author MichMan Jul 2022 #23

Nationalize all monopolies. multigraincracker Jul 2022 #24

There is no monopoly on oil or gas in the USA. . . . nt Bernardo de La Paz Jul 2022 #28

Utter nonsense, unworkable, a waste of time to propose Bernardo de La Paz Jul 2022 #31

There is no competition when a few large companies multigraincracker Jul 2022 #35

I had posted one such comparison in a different thread BumRushDaShow Jul 2022 #26

As the economy continues to recede, gas prices will drop considerably MichMan Jul 2022 #33

By then Big Oil will be bigger, richer with more political power and multigraincracker Jul 2022 #36

Not if demand plummets like it did in 2020. MichMan Jul 2022 #37

We need to speed up the switch to alternate fuels. multigraincracker Jul 2022 #38