Economy
Related: About this forumI seem to remember the last time oil was $100/barrel,
the pump price was about $3.00.
Time for a "windfall profit tax".
jimfields33
(18,538 posts)Indiana 62 cents a gallon, Pennsylvania 52 cents a gallon. Add costs increase and labor increase and there has go. A buck plus more.
multigraincracker
(33,955 posts)I know they weren't a buck .50 more.
jimfields33
(18,538 posts)Im sure gouging is part of it but not the independent gas stations who make their money on slurpees.
Beachnutt
(8,081 posts)and right down the street it is 4.27, that is happening all over the country.
I have seen a .40 cent price difference within blocks,
And on trips big price differences within a cpl of miles.
Somebody doing some gouging...
greymattermom
(5,794 posts)4.48 half a mile away
IronLionZion
(46,898 posts)who pay a membership fee.
MichMan
(13,020 posts)the problem will be self correcting.
Bernardo de La Paz
(50,821 posts)If a station has full tanks when wholesale prices were lower, there would be a difference at the pump.
Station owners might also hedge their purchases by buying / selling futures contracts / options / derivatives.
An owner might have several stations and have a depot they filled with a huge quantity at a lower price at an earlier date.
A different owner might have only one station and the tanks don't have super large capacity and have to be filled frequently.
Historic NY
(37,792 posts)Sign up and save 10-11 cents. They think they make it up on in store purchases. If they can afford to drop it that much, then you know its all extra to corporate HQ.
multigraincracker
(33,955 posts)That'd make it .27 cents. Now look at Oil CEO compensation and you'll see where it is going.
cstanleytech
(26,921 posts)despite the minor cost of higher wages.
So really what's going on here? Personally I think number of companies are lying through their teeth and blaming the minor wage increases for the price hikes.
kwijybo
(263 posts)back in 2008, IIRC, there was a surplus of refineries. Then came a hurricane, and they still had a surplus. But, they had an excuse, so they shuttered old refineries and some new to increase the profit in refining. Fast forward, and we are paying for it.
doc03
(36,557 posts)not.
moose65
(3,286 posts)Taxes haven't increased by 62 cents - there was already a tax amount in that pump price.
The national average price of a gallon of regular has decreased by almost 25 cents since it peaked in the middle of June.
BumRushDaShow
(141,332 posts)PA's gasoline taxes were raised to 58 cents a gallon in January 2017 - 5 1/2 years ago.
Updated: Dec. 13, 2016, 7:12 p.m. | Published: Dec. 13, 2016, 6:12 p.m.
By Barbara Miller | bmiller@pennlive.com
Drivers in Pennsylvania face the third and last installment of gas tax increases Jan. 1 resulting from Act 89, a bipartisan effort to address a large backlog of highway and bridge repair needs in the state.
The increase in the tax is the equivalent of about eight cents per gallon, which is expected to generate $299 million more next year to fix roads and bridges and pay for state police protection on the highways.
(snip)
The current tax is about 50 cents per gallon, which will rise to about 58 cents in January. A federal excise tax adds another 18.4 cents, bringing the tax total to 76.4 cents.
https://www.pennlive.com/news/2016/12/get_ready_for_another_gas_tax.html
I won't even get into the extra 2% sales tax that Philly adds onto the state's 6% sales tax for purchases in the city.
Cherokee100
(310 posts)'Real men drill for oil'. So they never have to work again..
multigraincracker
(33,955 posts)It's base on what the market will bear.
cstanleytech
(26,921 posts)companies feel they can get away with on screwing their customers.
multigraincracker
(33,955 posts)lots to politicians to get away with it. Big Oil, Big Pharma and Big Coal spend a lot.
Bernardo de La Paz
(50,821 posts)Maine Abu El Banat
(3,479 posts)Come into some money!
lastlib
(24,790 posts)Not to mention oil & gas
MichMan
(13,020 posts)BumRushDaShow
(141,332 posts)after the last fiasco here - https://www.democraticunderground.com/100216824553
MichMan
(13,020 posts)That was the basis for my response to the OP. You may disagree completely with my statement.
I worked my entire career in manufacturing components for the auto industry. Ignoring the costs of labor, benefits, safety, infrastructure, transportation, compliance with regulations, state, local and federal taxes and a myriad of others doesn't mean they don't exist.
thesquanderer
(12,322 posts)because gas stations (and the refineries who are warehousing it on the way to the gas stations) sell the gas they have based on what they already paid for it.
When oil goes up, gasoline companies may (or may not) raise their prices some based on anticipating what it will cost them to replenish... but once they own the gasoline, they are loathe to lower the price until they get their profit on the stuff they own that they have already paid the earlier higher price for. Welcome to capitalism, heads you lose, tails we win!
multigraincracker
(33,955 posts)every station raises the price on the same day to the same price. When it drops, its slow and varies.
KS Toronado
(19,466 posts)Consumers want to see the price of gas go back to a reasonable rate they can afford. Taxing oil companies
would just put money into the government coffers, not the pockets of consumers who are getting ripped off.
Love to see a Democratic Strategist come up with an idea using the emergency powers Presidents are
afforded to stop (or limit) big oil from exporting until the Ukraine/Russia war is over.
Lowering the pump price should help us immensely in the midterms. IMO
Response to KS Toronado (Reply #22)
MichMan This message was self-deleted by its author.
multigraincracker
(33,955 posts)Take away the profit motive on necessaries.
Bernardo de La Paz
(50,821 posts)Bernardo de La Paz
(50,821 posts)1) They will not sell at a price where they lose money on every gallon.
2) If forced to sell at losses they will sue for compensation and will get it.
What "war powers act"? The last one lapsed in 1946.
You don't know what you are talking about.
multigraincracker
(33,955 posts)own the whole process, from drilling, refining to retail sales. Bust the trust. Beak them up into smaller companies that will be forced to compete.
Adam Smith, the father of Capitalism who wrote the book, Wealth of Nations said that regulation are necessary to prevent monopolies and he was correct, until the radical Free Market concept replaced classical Capitalism with the likes of Ayn Rand and the Chicago School of Economics. Now the rich get richer and the poor and middle class get poorer. How would you correct that fact?
BumRushDaShow
(141,332 posts)posted here - https://www.democraticunderground.com/?com=view_post&forum=1002&pid=16824751
Yet the average price of gasoline at the time was $4.11/gal - https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=emm_epm0_pte_nus_dpg&f=m
Definitely a "what the market will bear" (although one would need to consider factoring in the reduction of refineries of late).
What I did find while researching, was that CA had a nice breakdown of costs to get the stuff to the pump - https://www.energy.ca.gov/data-reports/energy-almanac/transportation-energy/estimated-gasoline-price-breakdown-and-margins
This page details the estimated gross margins for both refiners and distributors. The term "margin" includes both costs and profits. The margin data is based on the statewide average retail and wholesale price of gasoline for a single day of the week. It is not a seven-day average. The margin provided here is an indicator for the California market as a whole and not for any particular refiner or retailer of gasoline.
The Energy Commission cannot estimate profit margins based on average retail prices and observed wholesale market prices. This is because detailed data on refining and distribution costs, costs paid by approximately 10,000 retail locations, hundreds of wholesale marketers, jobbers, and distributors is not available.
Refiner Margin
Refiner Margin (costs and profits) is calculated by subtracting the market price for crude oil from the wholesale price of gasoline. The result is a gross refining margin which includes the cost of operating the refinery as well as the profits for the refining company.
The price of crude oil is based on the daily market price for crude oil from the Alaska North Slope published in the Wall Street Journal©. The market price of crude oil also includes its own share of costs and profits. In the case of a vertically integrated oil company, the same company that owns and operates the oil field also owns and operates the refinery. Several vertically integrated oil companies operate in California including BP, Chevron, ExxonMobil, and Shell. For simplicity, the refining margins shown are based on producing one barrel of gasoline from one barrel of crude oil. No adjustments are made for other refined products.
In fact, they had a nice little table to show the breakdown (below was as of my original post date of 6/22/22 and the link is dynamic so the costs may change each week) -
June 13, 2022
Branded | Unbranded
Distribution Costs, Marketing Costs and Profits | $0.56 | $0.56
Crude Oil Costs | $3.00 | $3.00
Refinery Cost and Profit | $1.85 | $1.85
State Underground Storage Tank Fee | $0.02 | $0.02
State and Local Tax | $0.14 | $0.14
State Excise Tax | $0.511 | $0.511
Federal Excise Tax| $0.184 | $0.184
Retail Prices| $6.27 | $6.27
MichMan
(13,020 posts)multigraincracker
(33,955 posts)we will be poorer.
MichMan
(13,020 posts)multigraincracker
(33,955 posts)These high prices are helping that.