Gas prices

[Mgderf]

I'll just leave this here

 

[BigRed]

We need to tell the goobermint we can feed our families or pay taxes. ...but not both.

I have zero intention of not caring for my loved ones.

Now that central state? I would starve that ***** in a heart beat. That ***** can go straight to Hell for all I care.

 

[BugI02]

My nephew is a left-wing Democrat, so I am always treated to their nonsense on social media. The latest is that the rise in gas prices is all due to price-gouging by the evil oil companies, Biden is doing a great job!

I've tried to explain it to people I know as simply as possible. What a company charges for something has to be driven by the expected price they will pay for their next shipment of raw materials, not what they paid for the last one

Ergo gasoline prices move pretty much in lockstep with the price of crude, and when you beat down domestic production and then embargo 8% of world production in a tight world market, pricing will chase supply and there will be no price competition at the retail level unless and until supplies seem more stable

 

[ancjr]

I've tried to explain it to people I know as simply as possible. What a company charges for something has to be driven by the expected price they will pay for their next shipment of raw materials, not what they paid for the last one

Ergo gasoline prices move pretty much in lockstep with the price of crude, and when you beat down domestic production and then embargo 8% of world production in a tight world market, pricing will chase supply and there will be no price competition at the retail level unless and until supplies seem more stable

The same people that bought something valuable for a nickel at a yardsale and resold it to a collector for over a hundred dollars calls what you describe "price gouging"

 

[BugI02]

The same people that bought something valuable for a nickel at a yardsale and resold it to a collector for over a hundred dollars calls what you describe "price gouging"

And, of course, that's because they have never run a business or signed the front of a paycheck

 

[DoggyDaddy]

I've tried to explain it to people I know as simply as possible. What a company charges for something has to be driven by the expected price they will pay for their next shipment of raw materials, not what they paid for the last one

Ergo gasoline prices move pretty much in lockstep with the price of crude, and when you beat down domestic production and then embargo 8% of world production in a tight world market, pricing will chase supply and there will be no price competition at the retail level unless and until supplies seem more stable

Gasoline seems to be one of the only commodities that behaves that way though. The price of oranges doesn't go up when the Farmer's Almanac predicts a cold winter in Florida. They only go up when the cold winter actually happens and the supply of oranges is affected. A barrel of oil today isn't going to make it to the refiners today, so the gas stations' prices aren't going to be affected until it's time to buy again.

 

[BugI02]

The price of oranges doesn't go up when the Farmer's Almanac predicts a cold winter in Florida.

The difference is the price of that raw material has ALREADY gone up sharply. It would be more analogous to Florida has already had the hard freeze and the supply of oranges is estimated to decline by 1/2. What would happen to the price of future purchases of oranges in that scenario?

If you are making widgets and selling them at twice your cost of materials, what happens to the price you must charge for widgets when the cost of those materials jumps by 100%. That 2x pricing over materials wasn't all profit, in fact profit likely was well under 10%. To maintain a stable business, you would have to double your prices

 

[Keith_Indy]

I want to be a Democrat President, so I can change my mind on a whim and blame other people for my own mistakes…

Zerohedge

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

www.zerohedge.com

 

[Ingomike]

The same people that bought something valuable for a nickel at a yardsale and resold it to a collector for over a hundred dollars calls what you describe "price gouging"

Wow! “Price gouging”. Where people tell the owner what price he is allowed to charge for what he owns.

What on earth is wrong with buying low and selling high?

 

[actaeon277]

My nephew is a left-wing Democrat, so I am always treated to their nonsense on social media. The latest is that the rise in gas prices is all due to price-gouging by the evil oil companies, Biden is doing a great job!

The law of supply and demand is a mystery to some.

Also the same people surprised that inflation is caused by an oversupply of money chasing too small amount of goods/services.

 

[ancjr]

The law of supply and demand is a mystery to some.

Also the same people surprised that inflation is caused by an oversupply of money chasing too small amount of goods/services.

I'm convinced this is not a conspiracy, ignorance or political issue, or even ideology that they're following. At this point, I think it's a religion.

 

[actaeon277]

Had to buy some groceries today too. Easily up 10-15% across the board. Astonishing.

Just worked at a Corned Beef dinner at my American Legion Post.
We bought beef for $3.49 a pound last year.
this year... 6.49 a pound

 

[Ingomike]

Just worked at a Corned Beef dinner at my American Legion Post.
We bought beef for $3.49 a pound last year.
this year... 6.49 a pound

And fertilizer prices are doubling at least…

 

[MRP2003]

Previous record high gas prices was when oil was 140 a barrel. Gas is now higher yet oil was at 110 a barrel. Companies are making record profits during these times

 

[Ark]

Just worked at a Corned Beef dinner at my American Legion Post.
We bought beef for $3.49 a pound last year.
this year... 6.49 a pound

Well, I guess we'll finally make progress on America's obesity problem.

 

[actaeon277]

Well, I guess we'll finally make progress on America's obesity problem.

If a collapse is triggered, gonna be a LOT of skinny people

 

[Tombs]

Previous record high gas prices was when oil was 140 a barrel. Gas is now higher yet oil was at 110 a barrel. Companies are making record profits during these times

A lot of it is probably taxes.

 

[bwframe]

Previous record high gas prices was when oil was 140 a barrel. Gas is now higher yet oil was at 110 a barrel. Companies are making record profits during these times

Maybe? Do we know what the cost of doing oil business is under Biden vs back then?

For sure though, state and federal gas taxes are higher now than then.



.

 

[wagyu52]

Just worked at a Corned Beef dinner at my American Legion Post.
We bought beef for $3.49 a pound last year.
this year... 6.49 a pound

Strange the price of cattle hasn’t doubled

 

[ancjr]

Strange the price of cattle hasn’t doubled

Not to the small cap independent producer, no

Not to hijack, but...



This is what is happening to most of the markets where there should be competition. Smaller producers are either bought up or regulated out of the market, leaving only a few large producers to form a cabal and lobby to keep it that way.