Biden demands faster drop in gas prices as oil tumbles

[BirdinHand]

So it seems they are doing exactly what Biden claims:

They are taking a higher profit on the prices they raise against the cheap gas in the tanks, then keeping that profit when they sell the new gas in the tanks & keep the same price as prices recede back down..

Basically, they seem to be profiteering.

I don't think either of you have a very good grasp on how very little profit is made from selling actual GAS at gas stations.

 

[CaughtInThe]

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.

News will cause gas to skyrocket at the pump even though the gas in the ground underneath the gas station was purchased cheaply.

How do you not know that?

 

[beefheart]

Doesn't matter about "all over the world". The US can be independent of world oil prices. We can control the market.

Really? Lame attempt

 

[lwf]

Doesn't matter about "all over the world". The US can be independent of world oil prices. We can control the market.

Biden can't force US oil companies to start drilling.

 

[Chomsky]

I don't think either of you have a very good grasp on how very little profit is made from selling actual GAS at gas stations.

I'm willing to accept your 15 cent profit. I've often heard numbers like that.

But from your example, it seems the station locks in a profit on their cheap gas in the tanks as provider prices rise, but when do they give it back when prices fall? Granted - the profit's a wash when they pay the higher price for the new gas, but when the price goes down for the next delivery, do they lower the price immediately, mid-tank, when the higher priced gas currently in the ground? Just ass they did mid-tank, when they raised prices?

It would be interesting to know that.

 

[MaryP]

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

--

Does Biden have a point?

It appears oil has been tumbling the last week, down 23%.

Of course he has a point, but I doubt it will move the oil companies. My lawn care went up significantly during the Obama gas spike and never came down. Neither did anything else, as far as I could tell. This year, my plowing went up 25% That's never coming down again, either.

 

[Chomsky]

Of course he has a point, but I doubt it will move the oil companies. My lawn care went up significantly during the Obama gas spike and never came down. Neither did anything else, as far as I could tell. This year, my plowing went up 25% That's never coming down again, either.

Ditto!

But, in my neck of the woods there also was a labor shortage component.

 

[BirdinHand]

I'm willing to accept your 15 cent profit. I've often heard numbers like that.

But from your example, it seems the station locks in a profit on their cheap gas in the tanks as provider prices rise, but when do they give it back when prices fall? Granted - the profit's a wash when they pay the higher price for the new gas, but when the price goes down for the next delivery, do they lower the price immediately, mid-tank, when the higher priced gas currently in the ground? Just ass they did mid-tank, when they raised prices?

It would be interesting to know that.

But they’re really not locking in THAT much profit - maybe what? A few thousand dollars? If that?

Figure even 100K gallons at .15 is 15K. And that’s gross additional income. When demand goes down as prices go up, etc they’re still paying workers to be at the station, they’re incurring higher costs for heating/cooling/utilities, etc.

I wouldn’t say they’re “profiteering”. These stations run low margin/high volume. They are trying to stay in the black - not operate in the red.

Are there likely some that take advantage? Sure. But I don’t think there is an issue with the gas stations when push comes to shove.

The government gets more per gallon of gasoline in taxes - states especially - than businesses do in profit.

 

[Chomsky]

Biden can't force US oil companies to start drilling.

Exactly.

And if Biden did, he would be accused of 'government overreach', or 'socialism, or both!

 

[MaryP]

Exactly.

And if Biden did, he would be accused of 'government overreach', or 'socialism, or both!

I don't know anything about economics but when oil is so absolutely required for living these days, maybe it should be regulated. It's nuts that people have to go through this shit every so many years. I'm tired of it.

 

[Chomsky]

But they’re really not locking in THAT much profit - maybe what? A few thousand dollars? If that?

Figure even 100K gallons at .15 is 15K. And that’s gross additional income. When demand goes down as prices go up, etc they’re still paying workers to be at the station, they’re incurring higher costs for heating/cooling/utilities, etc.

I wouldn’t say they’re “profiteering”. These stations run low margin/high volume. They are trying to stay in the black - not operate in the red.

Are there likely some that take advantage? Sure. But I don’t think there is an issue with the gas stations when push comes to shove.

The government gets more per gallon of gasoline in taxes - states especially - than businesses do in profit.

??

You just used the argument in your original post to me, to explain why prices are not going down at the pump.

Now, you're are claiming your argument is inconsequential? That's what you seem to be inferring, here.

 

[Rawley]

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

Does Biden have a point?

It appears oil has been tumbling the last week, down 23%.

Sure. But I wouldn't be holding my breath waiting for the oil industry to take the President seriously when it is a core platform of his party and his administration to put them out of business.

 

[Chomsky]

I don't know anything about economics but when oil is so absolutely required for living these days, maybe it should be regulated. It's nuts that people have to go through this shit every so many years. I'm tired of it.

Actually, I've thought of that as I've been posting here now - too.

My city/county/state regulate utilities strongly. I'm used to this, and actually have come to prefer it. I believe my utilities are priced reasonably enough, stable, and most importantly they are easily & reliably available to everyone without prejudice or concern.

After watching the 'free-market' Texas style of utilities the past year, I am absolutely sure I don't want what they have!

So, would I support regulated gas prices? In general, I'm reticent to regulate anything that needn't be. So, I can't unequivocally sign-off on it. But, I would be willing to explore it and hear the arguments. I'll never say 'no' to listening to an idea.

 

[Chomsky]

Sure. But I wouldn't be holding my breath waiting for the oil industry to take the President seriously when it is a core platform of his party and his administration to put them out of business.

If true, then rather than acting through personal animus, perhaps they should act with reasonable concern for the well-being of American citizens?

But I realize that's not in their corporate charters . . .

 

[Integrityrespec]

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

--

Does Biden have a point?

It appears oil has been tumbling the last week, down 23%.

Does Biden realize that oil is purchased in advance of hitting the pumps and whatever they paid for it a week or months ago they have to recoup at the pump when that supply gets there. It doesn't matter if oil dropped to 50 abarrel it they paid 130 for it a couple of weeks ago.

 

[Rawley]

If true, then rather than acting through personal animus, perhaps they should act with reasonable concern for the well-being of American citizens?

But I realize that's not in their corporate charters . . .

I wouldn't be holding my breath on that one either. American citizens are the ones that put these New Green Dealers in charge.

 

[The AntiDonald]

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.

With quarterly profits ranging in the area of $8 billion (and that's just Exxon), I hardly think the oil industry has to risk holding the bag.

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.

Then please explain to me and all the other dummies out there why in my area are their two Exxon stations no more than 2 miles apart with a $.70 / gal. difference for reg. gas? This is all the time, not just during hard times or war time. Seems to me one of these two owners is price gouging. When a customer is being raped at the pump, all they know is they're being raped.

 

[Slyfox696]

Does Biden realize that oil is purchased in advance of hitting the pumps and whatever they paid for it a week or months ago they have to recoup at the pump when that supply gets there. It doesn't matter if oil dropped to 50 abarrel it they paid 130 for it a couple of weeks ago.

Now do the same thing in reverse. If they paid for the gas a week ago, when the price was low, how come they raised their prices at the same time oil prices were rising?

That's what people are pointing out. Gas prices seem to rise in almost direct proportion to the rise in oil prices, but seem to lower at a much slower rate than a drop in oil prices. So, somewhere in there, gas is being sold at a much higher price than what it was purchased.

 

[Bullseye]

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

--

Does Biden have a point?

It appears oil has been tumbling the last week, down 23%.

Probably not. gasoline today was refined from oil bought long ago; IF these prices hold or continue to decline there SHOULD be lower prices in down the road. a

 

[Chomsky]

Probably not. gasoline today was refined from oil bought long ago; IF these prices hold or continue to decline there SHOULD be lower prices in down the road. a

Well, the prices only jumped stratospherically 3 weeks ago when Putin invaded, so I'm not sure how that reconciles with that I bolded?

 

[Bullseye]

Well, the prices only jumped stratospherically 3 weeks ago when Putin invaded, so I'm not sure how that reconciles with that I bolded?

Gas here has been going up for longer than that.

 

[Gateman_Wen]

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

--

Does Biden have a point?

It appears oil has been tumbling the last week, down 23%.

Yes, he does. Gas went up instantly when oil went up. It should come down at the same rate. Gas has fallen by $0.03 here this week, one penny at a time. When oil spiked it went up $1.50 in under a week.

 

[Gateman_Wen]

If Biden has no power or can’t impact the prices as they rise then he has none as they fall.

You're correct, all he can do is ask.

 

[Gateman_Wen]

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.

Then why did it go up instantaneously?

 

[Mycroft]

Perhaps.

Meanwhile, I'm sure they don't mind the profit windfall.

When prices go up...and people start buying less...the profit might increase, but guess what happens? The producers start producing less. At that point, all you can say is "Welcome to the recession."