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"Not that oil prices went up that much?" Your own chart shows a 35% increase in a month while at the same time gasoline prices went up 2.5%, so I'm not sure what your point is.
Of the top ten million things worth complaining about in today's world, seeing average gasoline prices claw their way back up to -- *GASP!* -- $1.86 a gallon ranks right around ten-million-and-first.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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Here our Costco price has gone up from $2.29 to $2.33, not a big deal but I preferred when the prices were dropping. Our name brand stations are still at $2.59-2.89, have not gone up yet. It's funny to drive by and see them empty, and no lines at Costco gas.
Honestly it's pretty obvious why prices are rising. When your volume goes down you try to make up income by raising the unit price. Especially since the remaining demand is pretty inelastic. Economics 101.
Honestly it's pretty obvious why prices are rising. When your volume goes down you try to make up income by raising the unit price. Especially since the remaining demand is pretty inelastic. Economics 101.
Yeah, that's not how gasoline pricing works. If it were, gasoline would be 10 bucks a gallon right about now.
Economy says, if you can't sell your stuff, you lower price to get more customers. It's called deflation. It, also, creates deflation bubble.
Economics, on the other hand, say something different.
As ironic observation, where I'm at, Seattle suburb, historically the most expensive gas retailer in the area - SHELL, they have "gas with nitrogen" - is same price as Costco out in sticks. Unbelievable! They were always a dollar more. Shame on Costco. 2.26 Shell in Seatac vs 2.29 Costco in Covington.
We're literally running out of places to store all the oil building up in inventory. They're having to rent oil tankers to sit offshore filled with oil because there's nowhere else to put it. It's gonna take a long while to get through all the excess inventory, much less strain production capacity to the point of $4/gal gasoline again.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
44,585 posts, read 81,186,228 times
Reputation: 57821
Quote:
Originally Posted by ukrkoz
Economy says, if you can't sell your stuff, you lower price to get more customers. It's called deflation. It, also, creates deflation bubble.
Economics, on the other hand, say something different.
As ironic observation, where I'm at, Seattle suburb, historically the most expensive gas retailer in the area - SHELL, they have "gas with nitrogen" - is same price as Costco out in sticks. Unbelievable! They were always a dollar more. Shame on Costco. 2.26 Shell in Seatac vs 2.29 Costco in Covington.
I would not blame Costco, I would be grateful for that Shell. Here in Sammamish our two Shell stations are at $2.67 and $2.69, and one in Redmond is at $2.99. Our Costco in Issaquah is $2.35, in Redmond $2.33.
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