What does Fuel Cost in your Neighborhood?

[dismalist]

With oil prices surging to the highest level since 2008, Secretary of Energy Jennifer Granholm called on companies to raise output.
"We are in an emergency, and we have to responsibly increase short-term supply where we can right now to stabilize the market and minimize harm to American families," she said Wednesday.

Senator Warren Wants ''Windfall Tax'' On Oil Profits. "Big Oil's first priority is to maximize profits," Warren said in a Tweet on Wednesday. "We can't let them use Putin's invasion as an excuse to pad their bottom line with war-fueled profits."

Alas, people, we can't have both.

[clean]

$3.99 9/10!  Up 80 Cents in less than 10 days! 

[mythbuster]

I fueled up Monday at $3.99 a gallon. I pass the same gas station daily on my way to work. Tuesday it was $4.19, and Wednesday it was $4.39. So a jump of 20 cents each day.

I'm wondering how long until someone in power suggests that the oil companies might reduce their profit margins right now.

[mamselle]

Didn't Biden just do that (or as much as say so) in the "No profit-gouging" part of his speech the other day?

M. 

[Langue_doc]

$3.80 yesterday.

$4.36 was the least expensive, cash or credit.

Exxon Mobil, where I usually get gas, was charging $4.25 for cash, higher for credit.

I have several long road trips coming up, so it's going to be an expensive series of trips.

[dismalist]

We can set the price of gasoline anywhere we want. We just won't get the quantity we want at that price or even a higher price.

Here is footage from the 1974 gasoline shortage. https://www.youtube.com/watch?v=gOi_ZgPlC1k Caused by price controls.  Clearly, less gas was produced and delivered and more was desired for consumption. The non-price rationing needed was by length of line! Great for people who put a zero value on their leisure time.

It seems people have to relearn obvious stuff every generation or two.

[Parasaurolophus]

It's not like the last time the barrel price was this high the pump price was, though. There's a disconnect in there. It's driven by more than just supply issues.

[dismalist]

It's not like the last time the barrel price was this high the pump price was, though. There's a disconnect in there. It's driven by more than just supply issues.

There is no reason to expect any constant relationship between crude and pump prices. There is no reason for any of us to care.

Going with Biden & Warren, if it's not supply, and if it's not demand, it would be greed. The oil companies could have gotten more greedy. Or it's more phlogiston in the atmosphere.

Control petrol prices, ration by queue, tax oil company profits, impose a General Maximum, but then don't count on more oil today. :-)

[hmaria1609]

Filled up at $4.16 at Costco yesterday.  (Same price for Sam's Club) Other stations are $4.29 and up.

[hmaria1609]

Thought this article from "USA Today" about gas prices varying by state would be of interest:
https://www.usatoday.com/story/money/2022/03/10/high-gas-prices-states-taxes-california/6990350001/?utm_source=pocket-newtab
Posted online 3/10/22
There's a survey at the end of the article.

[Kron3007]

It's not like the last time the barrel price was this high the pump price was, though. There's a disconnect in there. It's driven by more than just supply issues.

There is no reason to expect any constant relationship between crude and pump prices. There is no reason for any of us to care.

Going with Biden & Warren, if it's not supply, and if it's not demand, it would be greed. The oil companies could have gotten more greedy. Or it's more phlogiston in the atmosphere.

Control petrol prices, ration by queue, tax oil company profits, impose a General Maximum, but then don't count on more oil today. :-)

You leave speculation out of your equation.  Oil prices are not just supply and demand, they also factor in perceived risk and predictions.  I don't think the current issues have much to do with actual supply issues (yet).

As for greed it isn't that oil companies get more greedy.  They have always been greedy (this is the underlying principle of capitalism, not just for oil companies), there are just times they can capitalize on a situation.

[dismalist]

It's not like the last time the barrel price was this high the pump price was, though. There's a disconnect in there. It's driven by more than just supply issues.

There is no reason to expect any constant relationship between crude and pump prices. There is no reason for any of us to care.

Going with Biden & Warren, if it's not supply, and if it's not demand, it would be greed. The oil companies could have gotten more greedy. Or it's more phlogiston in the atmosphere.

Control petrol prices, ration by queue, tax oil company profits, impose a General Maximum, but then don't count on more oil today. :-)

You leave speculation out of your equation.  Oil prices are not just supply and demand, they also factor in perceived risk and predictions.  I don't think the current issues have much to do with actual supply issues (yet).

As for greed it isn't that oil companies get more greedy.  They have always been greedy (this is the underlying principle of capitalism, not just for oil companies), there are just times they can capitalize on a situation.

Since petrol doesn't spoil, it can be stored in the ground for a long time. In such a market, expectations of future price co-determine current supply and demand. Everybody expects Russian oil to disappear from western markets. Hence, expected future price rises. This induces current suppliers to keep more petrol in the ground. That drives up current price.

That's what speculation does -- it smooths the hit over time. We should write thank you notes to speculators. :-)

[apl68]

It has broken four dollars a gallon here in recent days, and people are very much up in arms.  Nothing much they can do, except pay up and try to economize.  Which many could do better if they didn't insist on driving vehicles large enough to pull a log truck out of a ditch.  Granted, some local folks actually DO have to pull log trucks out of ditches now and then, but most just seem to want more truck than they honestly need.

Not too worried for myself, since I drive a car that gets 42 miles per gallon on the interstate.  I am concerned for people I know who can barely afford fuel in the best of times.

[Parasaurolophus]

$6.68 USD.

[Kron3007]

It's not like the last time the barrel price was this high the pump price was, though. There's a disconnect in there. It's driven by more than just supply issues.

There is no reason to expect any constant relationship between crude and pump prices. There is no reason for any of us to care.

Going with Biden & Warren, if it's not supply, and if it's not demand, it would be greed. The oil companies could have gotten more greedy. Or it's more phlogiston in the atmosphere.

Control petrol prices, ration by queue, tax oil company profits, impose a General Maximum, but then don't count on more oil today. :-)

You leave speculation out of your equation.  Oil prices are not just supply and demand, they also factor in perceived risk and predictions.  I don't think the current issues have much to do with actual supply issues (yet).

As for greed it isn't that oil companies get more greedy.  They have always been greedy (this is the underlying principle of capitalism, not just for oil companies), there are just times they can capitalize on a situation.

Since petrol doesn't spoil, it can be stored in the ground for a long time. In such a market, expectations of future price co-determine current supply and demand. Everybody expects Russian oil to disappear from western markets. Hence, expected future price rises. This induces current suppliers to keep more petrol in the ground. That drives up current price.

That's what speculation does -- it smooths the hit over time. We should write thank you notes to speculators. :-)

As far as I can tell, production is currently the same today as it was a month ago, prices are not.  So they are not "leaving it in the ground".  I assume demand is up a bit, which explains part, but not all of the increase.  The rest is speculation, and I dont really feel like writing a thank you letter at the moment.