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Old 05-18-2022, 06:36 AM
 
2,352 posts, read 1,780,522 times
Reputation: 700

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Quote:
Originally Posted by justyouraveragetenant View Post
Gas is 4.85 a gallon where I live. One day it was 4.67 then the next day it was 4.77 and the next day it's 4.85. there has to be price hiking and not the regular economy contributing to it. I remember Galvin the politician was going to investigate if they are price hiking taking advantage of the situation.
GeoffD has it right... the wholesale price of gasoline has jumped 20% in a month. When you add in the gas taxes you're already at like $4.50.
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Old 05-18-2022, 07:35 AM
 
3,398 posts, read 1,549,967 times
Reputation: 1963
Quote:
Originally Posted by yesmaybe View Post
GeoffD has it right... the wholesale price of gasoline has jumped 20% in a month. When you add in the gas taxes you're already at like $4.50.
It might be the wholesalers who are unfairly hiking up the gas prices.

https://www.boston.com/news/local-ne...gas-companies/

The gas was going up before the Ukraine war. It could be do to major inflation that is happening now and happened before the Russian conflict.

I found a gas station up the street from me that is 4.99 now.
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Old 05-18-2022, 08:01 AM
 
2,352 posts, read 1,780,522 times
Reputation: 700
Quote:
Originally Posted by justyouraveragetenant View Post
It might be the wholesalers who are unfairly hiking up the gas prices.

https://www.boston.com/news/local-ne...gas-companies/

The gas was going up before the Ukraine war. It could be do to major inflation that is happening now and happened before the Russian conflict.
Just pol grandstanding. If there's anyone gouging, it's OPEC. Good luck suing them.
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Old 05-18-2022, 09:28 AM
 
Location: Westwood, MA
5,037 posts, read 6,923,971 times
Reputation: 5961
Quote:
Originally Posted by yesmaybe View Post
Just pol grandstanding. If there's anyone gouging, it's OPEC. Good luck suing them.
It's not gouging, it's simple supply and demand.

Oil is not easy to find. It takes years and sometimes even decades to develop a new basin. It also takes billions of dollars. When the oil price is low--as it had been for the previous years--this investment stops. New projects are delayed or cancelled. People are fired or go find jobs in other industries where they are less likely to be laid off so quickly.

When there is a sudden shock to the supply along with a steady increase in demand, the remaining supply has no way of being quickly ramped up. You run into a situation where prices can increase very rapidly. There is no good way to quickly fill the supply, so prices stay high. Eventually, the increased price spurs investment and the supply increases, but usually slowly. Investment has been chronically low for nearly a decade and a very large portion of the experienced people have either retired or found new professions, not to be easily replaced.

Larger companies can be big enough to weather the cycles. They invest in marginal or even unprofitable ventures when the price is low and make up the difference when the price is high. This seems to anger unsophisticated consumers who seem to think that oil should just magically appear and that the people who find and sell it should do so as a public service. There are countries where that is essentially the model (ranging from regimes as different as Saudi Arabia and Norway), but even those state-run firms still sell to the global population at market prices.

My hope with this and every other oil price shock is that instead of complaining about 'gouging' without really understanding the oil market, this will finally spur people to make substantive transitions away from oil. This isn't the first price shock in the 21st century and probably won't be the last.
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Old 05-18-2022, 10:52 AM
 
2,279 posts, read 1,342,142 times
Reputation: 1576
Quote:
Originally Posted by r_p View Post
Get a motorcycle. Cheaper and way more fun.
Get an EV.
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Old 05-18-2022, 05:22 PM
 
5,111 posts, read 2,668,728 times
Reputation: 3691
This will help. lol


https://americanmilitarynews.com/202...leases-report/
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Old 05-19-2022, 04:40 AM
 
24,559 posts, read 18,259,472 times
Reputation: 40260
The New York Mercantile Exchange gasoline price has dropped 50 cents since Monday. It’s now $3.54. The price swings so far in May have been enormous.

Federal gasoline tax is $0.184 per gallon. The Massachusetts tax is $0.24. The commodity price is going to have to drop a bunch more to get price at the pump back below $4/gallon.
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Old 05-19-2022, 07:17 AM
 
3,398 posts, read 1,549,967 times
Reputation: 1963
Quote:
Originally Posted by bostongymjunkie View Post
You are right he stopped drilling in certain areas which raised the price of gas. Lots of jobs were lost in the oil industry not to mention the stop of the keystone pipeline did not help.
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Old 05-19-2022, 09:35 AM
 
24,559 posts, read 18,259,472 times
Reputation: 40260
Quote:
Originally Posted by justyouraveragetenant View Post
You are right he stopped drilling in certain areas which raised the price of gas. Lots of jobs were lost in the oil industry not to mention the stop of the keystone pipeline did not help.

The United States is the largest oil producer in the world. 11,567,000 barrels per day in December 2021. Russia and Saudi Arabia were 10 million-something per day. Your cause-effect speculation is laughable.
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Old 05-19-2022, 10:53 AM
 
Location: Los Angeles
8,553 posts, read 10,978,234 times
Reputation: 10808
Quote:
Originally Posted by justyouraveragetenant View Post
It might be the wholesalers who are unfairly hiking up the gas prices.

https://www.boston.com/news/local-ne...gas-companies/

The gas was going up before the Ukraine war. It could be do to major inflation that is happening now and happened before the Russian conflict.

I found a gas station up the street from me that is 4.99 now.
I would love to find a station charging that little here in California.
Obviously Ma has some advantages to living there.
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