Gas prices

[larwdem]

I live In The Wilkes-barre area of PA. Gas prices went from 3.75 to 4.15 in the last 2 weeks. I would bet my house, Gas prices will fall after Nov 8th. What you say?

[at140]

1. Go higher after Nov 8

Is my prediction.

[The_Casual_Observer]

2. It depends on whether the OPEC cutback is real or just bluster

In the long run. The recent runup seemed to be speculation that the cutback was real.

[Ron Green]

3. Drivers are still:

Sitting in idling vehicles while they look at phones.

Driving long commutes to work and back alone.

Driving many short trips of a couple miles or less rather than walking or biking.

Buying large pickups and SUVs.

I don’t think gas prices have ever been high; not high enough to change harmful behavior.

[TheFarseer]

11. +1

Sitting in the parking lot in an idling car for lunch hour when there is perfectly good break room is a pet peeve of mine. Probably the same dipsticks that complain the loudest about gas prices.

[Historic NY]

4. A Citgo near me bought and cleanup a former Mobil station its

3.35 across the street its 3.79. I watch two tankers unload and the prices is the same.

[multigraincracker]

5. Gas price is not based on supply and demand.

The price is based “what the market will bear”.

If everyone would take a vow to not make any purchase, except fuel, at the gas station until gas price reaches $2.50 or less. Gas price would drop like a rock. Those candy bars, sodas and snacks are how gas stations make money

[MichMan]

7. How would reducing gas station profits to zero cause prices to drop?

Most stations are owned by independent companies and profit on gas is several cents a gallon. Since they can't operate for too long losing money, it seems like they would need to raise gas prices to make up for it.

Like you say, it isn't the gas that gas stations make money on, so clearly that means they aren't gouging people with gas prices on the retail level.

[multigraincracker]

8. I worded for Speedway years ago and

pushing those inside items was all that mattered to the mid-level District and Regional managers.
Any downward move in the sale of those would mean dropping the gas prices to revive sales. Like you correctly said, they only make a few cents on the fuel. They would have to take a little loss on gas to maintain the inside sales that are the meat and potatoes of the business.

The next better way would be to always shop for the cheapest gas, even if only a penny less. A big line at the pumps across the street at the penny less station would drive the price down at the penny more station. It kills me when I see every station in town at the exact same price. All that means is competition is bull crap. You can't say that not one store is any more efficient than any other.

[MichMan]

10. The post I replied to suggests that they could cut the gas price to $2.50

That would be $1.60 a gallon less than it is here right now in Michigan. No gas station could stay in business losing $1.50 on every gallon by making it up on convenience store sales.

[multigraincracker]

12. Have you seen the current profits for big oil?

Oil giants rake in record profits as energy prices remain high
Oct 28, 2022October 28, 2022 / 12:21 PM / CBS/AP. Oil companies are reporting surging profits as energy prices remain elevated. Exxon Mobil broke records with its profits in the third quarter, raking in $19.7 ...

[MichMan]

14. The reference was to corner gas station profits and convenience store sales

Very very few are owned by the oil companies

[Lurker Deluxe]

15. And ...

How much do you think oil companies make on a gallon of gas?

$1.50?

Not even close. $0.15 ... maybe.

Any idea who makes the most on a gallon of gas in the US?

The government, with about $0.50 per gallon between federal and state taxes.

The world consumes massive amount of oil per day. Massive being close to 94 million barrels of oil ... daily. 40+ gallons of fuel per barrel equal about 3.75 billion gallons of fuel per day.

[multigraincracker]

16. 3.75 billion times 15 cents adds up.

They pay, virtually zero tax on it. We pay the tax at the pump. We are dealing with a virtual monopoly of 4 or 5 companies that rig it. I love the idea of an "excess profits tax" on them. Tax Stock Buy Backs at 100% too.

[MichMan]

17. What makes an excessive profit?

Anything over 10% ? Does that apply across the board?

How much profit percentage does Nike make on a pair of sneakers that are made with slave labor and retail for a $150? How about Apple on an iPhone?

Why isn't that considered a windfall then ?

[Lurker Deluxe]

19. They pay taxes

Maybe not as much as they should, but they do not make the tax laws.

I own XOM stock and get their annual reports. They are available online at their website.

Last 3, in millions

2021 - $23,598
2020 - -$23,251 ... pretty solid loss right there
2019 - $14,774

2022 - est $26,000

XOM operates, in general, around 9% EBITA. Apple ... 24%.

I am not sure how you tax a "windfall" for 4/5 companies who are not making excessive profits as compared to other multinational monsters.

So ... you tax them, hard. If you do not initiate price controls that cost get passed on, with a markup, straight to the consumer. Price controls lead to shortages, shortages lead to higher prices. Let's say that does not happen, the tax is not going to lower prices just higher tax revenue. You think what? The Fed is going to refund it to us? If they were going to do that why are not they already refunding their $0.50 now?

If the goal is to lower prices higher costs are not the answer. If the goal is to punish them, get on with it and tax them right the hell out of the US. Make no mistake that they have plans to deal with whatever the US gov does.

[multigraincracker]

20. Let's just make America great again, like

those golden years of the 50s and 60s. We had steady growth and a family could live on dads income. Steady growth with lots of companies growing along with a stock market. How could that be when when corporate taxes and personal taxes were over 90% on the rich? There were lots of different banks and oil producers.
Then our economy and government were bought out by the rich. I wish Katie Porter was here with her white board to explain it to you.

[Lurker Deluxe]

21. right after the next WW

If we survive the next world war and half of world's infrastructure is destroyed, assuming North America remains intact, we may see those days again. But doubtful.

The 90% rate is a fallacy, as no one paid those rates due to exemptions. Which I am sure you, and evidently Katie Porter, know. Income tax receipts have maintained within the same percentage since the 50's with various rates ... 15-20% of GDP.

https://www.deptofnumbers.com/blog/2010/08/tax-revenue-as-a-fraction-of-gdp/#:~:text=The%20federal%20government%20has%20collected%20between%2015%25-20%25%20of,%28not%20to%20mention%20all%20the%20booms%20and%20busts%29

The strongest indicator of revenues to the government is the overall success of the economy, strong economy = strong tax revenues.

The market has performed better over the last 30 years than the previous 30 years.

Losing a discussion and moving the goal, and/or topic, is fairly weak sauce.

But do continue. Why not go back to the roaring 20's where the markets really exploded. right up to when they did not.

[MichMan]

22. Is that what you want?

Most of Europe and Asia were still recovering from WWII, so American corporations had little to no competition. Plus countries like China and Mexico were still peasant based societies.

Women for the most part were relegated to low paying clerical jobs, while POC worked in low paying hospitality and service occupations.

[hlthe2b]

6. Costco near me has been at least $0.30 lower than it had been continually for the past month: $3.15

So, yours appears to be a regional issue. Costco has consistently been the lowest the past year, now and the range around me runs about $0.40 but I'd say the median is around $3.25

[Better Days Ahoy]

9. Agree. We buy mostly from Costco.

Costco uses its gas prices like its $1.50 hot dogs and $4.95 rotisserie chickens: Gets you to the store. Once there, you buy way more than you came to get.

[ProfessorGAC]

13. Ours Went Up 30 Cents In 2 Days

I have the Circle K discount card and it went $3.899, $4.099, $4.199 from Thursday to Saturday.
Then, I hear supply & demand. But, there's no shortage of supply & demand has fallen.
The markets are broken.

[Sympthsical]

18. Gas prices have been stable in NorCal for about three weeks

$5 or so at Costco, about $5.30-$5.40 everywhere else.

We seem to have gotten past that crazy erratic spike business of a month ago.

[Samrob]

23. It will go lower. They don't want to pay that windfall profit taxes. They have served their purpose

getting GOP elected so they can grift citizens some more.

[multigraincracker]

24. Good point, but

some will argue that, even here.

[MichMan]

25. What windfall profits tax?

Did one get passed?