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Biden fired off a tweet Wednesday morning highlighting the painfully slow decline in gasoline prices in a bid to draw scrutiny to a decades-long trend that critics say hurts consumers by failing to pass savings along to drivers.
"Oil prices are decreasing, gas prices should too," Biden said on Twitter. "Last time oil was $96 a barrel, gas was $3.62 a gallon. Now it's $4.31. Oil and gas companies shouldn't pad their profits at the expense of hardworking Americans."
Biden and his pukes are STILL trying to deflect blame. First, it was COVID. Then it's the Russians. Now, it's those greedy oil companies.Biden demands faster drop in gas prices as oil tumbles
President Joe Biden is using his bully pulpit to call out the tendency for gasoline prices to go up like a rocket when oil spikes, but only drop like a feather when crude crashes.www.cnn.com
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Does Biden have a point?
It appears oil has been tumbling the last week, down 23%.
When you see that Biden's comments won't cause gas prices to drop any quicker than they normally would, perhaps you'll realize that Biden had nothing to do with the rise in oil prices.Biden and his pukes are STILL trying to deflect blame. First, it was COVID. Then it's the Russians. Now, it's those greedy oil companies.
They won't ever own up to THEIR part in rising oil prices and the resulting inflation.
Biden and his pukes are STILL trying to deflect blame. First, it was COVID. Then it's the Russians. Now, it's those greedy oil companies.
They won't ever own up to THEIR part in rising oil prices and the resulting inflation.
Oil purchased at a certain price point doesn’t instantaneously get to the pumps as gas. Takes a while to get through delivery to refineries, get refined, get delivered to gas stations and finally get pumped by consumers.
Oil purchased at a certain price point doesn’t instantaneously get to the pumps as gas. Takes a while to get through delivery to refineries, get refined, get delivered to gas stations and finally get pumped by consumers.
What you say about it taking some time from oil purchased and refined to the pump is true. Then the rise of the price of gas should also be delayed. Takes a while for the refined oil into gas to be used up. Yet, it seems if the price of oil goes up today, the price of gas will increase by tomorrow. When the price of oil goes down it will take weeks for gas prices to drop.
Then why did the rice in gas prices in response to a rise in oil prices happen so fast if it's all about propagation time as you describe?Oil purchased at a certain price point doesn’t instantaneously get to the pumps as gas. Takes a while to get through delivery to refineries, get refined, get delivered to gas stations and finally get pumped by consumers.
Gas prices are up all over the world, how did Biden do that?Biden and his pukes are STILL trying to deflect blame. First, it was COVID. Then it's the Russians. Now, it's those greedy oil companies.
They won't ever own up to THEIR part in rising oil prices and the resulting inflation.
No kidding. But when the oil prices rise, the gas price at the pumps rises instantaneously. Why is the reverse not true? In a global market, that difference of 3-4 days is worth billions collectively.Oil purchased at a certain price point doesn’t instantaneously get to the pumps as gas. Takes a while to get through delivery to refineries, get refined, get delivered to gas stations and finally get pumped by consumers.
Biden and his pukes are STILL trying to deflect blame. First, it was COVID. Then it's the Russians. Now, it's those greedy oil companies.
They won't ever own up to THEIR part in rising oil prices and the resulting inflation.
Doesn't matter about "all over the world". The US can be independent of world oil prices. We can control the market.Gas prices are up all over the world, how did Biden do that?
There are layers between the oil companies and the gas stations. Each of them react to changes. Reactions to bad changes happen immediately. Reactions to good changes happen slowly...or, a better word, cautiously.What Biden is complaining about, is the "Rocket-Feather" effect, that is so prevalent that the term is used within the industry.
In reaction to oil prices, increases cause gas prices to immediately rise like a rocket, but decreases cause gas prices to slowly settle like a feather.
Perhaps there's a legitimate rationale? Or perhaps, oil companies are gouging the consumer?
Which is it?
Greed.Exactly.
I could buy the idea that there's a lag time in the system.
But if so, why is it not reasonably symmetrical?
There are layers between the oil companies and the gas stations. Each of them react to changes. Reactions to bad changes happen immediately. Reactions to good changes happen slowly...or, a better word, cautiously.
Nobody in the chain of layers wants to be left holding the bag.
How?Doesn't matter about "all over the world". The US can be independent of world oil prices. We can control the market.
The price you pay at Gas Station XYZ is predicated upon their supply and the prices THEY pay.Perhaps there's a legitimate rationale? Or perhaps, oil companies are gouging the consumer?
Which is it?
Which means that oil produced cheaply that's already at the gas pumps should not cause the prices to skyrocket at the gas pumps.Oil purchased at a certain price point doesn’t instantaneously get to the pumps as gas.
Right now oil at the pump was purchased at a very high price. It should start going down soon and reflecting cheaper oil of today.Which means that oil produced cheaply that's already at the gas pumps should not cause the prices to skyrocket at the gas pumps.
You have underground tanks that hold 40K gallons of gasoline/diesel.Which means that oil produced cheaply that's already at the gas pumps should not cause the prices to skyrocket at the gas pumps.
Gas station owners themselves are responsible for that.kidding. But when the oil prices rise, the gas price at the pumps rises instantaneously. Why is the reverse not true? In a global market, that difference of 3-4 days is worth billions collectively.
And or producing moresee only one way to get out from under the thumb of the oil cartels, and that's to stop using so much. It's a pretty common-sense theory.
The price you pay at Gas Station XYZ is predicated upon their supply and the prices THEY pay.
If they have a tank that holds 30-40K gallons of fuel - they'll INCREASE the price at the pump in reflection of their anticipated price to refill those tanks based on oil futures pricing in the market. But it gets more difficult to decrease the price at the pump because they've already paid $X for the fuel that is in the tanks/deliveries they've ordered, etc. Some of these stations get as many as 3-4 deliveries a day depending on how busy they are - and may have contracts where they are pre-paying for fuel for X deliveries at a time.
Keep in mind - the average markup at a gas station is something around $.15/gallon. And from that margin is where they live or die - the business makes money or goes out of business.
I never cease to be amazed that people think prices for ANYTHING should come down as quickly as they go up. Seems to show how little most Americans actually understand supply chains.
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