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Runaway Gas Price....How High?


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Several months ago, we were told gas prices were going up as a result of the *ahem* conflict.

 

Nevermind that the US only gets 2% of its oil from Russia. Most US oil comes from OPEC. Then, there's US oil reserves as a result of pumping a half million or more  barrels per day over many years. 

 

In other words, there's no good reason for the price of gas to hit a $5 per gallon average or higher anywhere in America.

 

Yet, the greedy oil companies and their allies will get away with it because Americans are too complacent to complain.  

 

I had a feeling that after a 2-year lockdown due to a pandemic and economic slow down and raising the minimum wage, Americans would be forced to pay up.

 

Sure enough, we've got inflation and higher interest rates to go along with runaway gas prices.

 

I'm just wondering if Americans will tap out before the midterm elections. To that end, I wouldn't be surprised if gas prices drop precipitously shortly after Labor Day.😎

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I have to purchase premium gas.  Yesterday I paid the most for gas than I have ever had to pay im my life, $5.099 ( really wish they would stop pricing gas in 10th of a cent).

 

In the early days of the pandemic gas was a cheap as I've seen it in recent memory less than 2 bucks!  There has been a dramatic, and I'm sure unprecedented increase in the priced of gas in the last two years last two years.

 

No, I don't buy the idea that Russia's behavior is the only reason for the increase. 

 

1 hour ago, ProfD said:

Yet, the greedy oil companies and their allies will get away with it because Americans are too complacent to complain.  

 

You don't think American's are not complaining enough about the price of gas?

 

That said, gas is still relatively cheap here relative to other countries.  In fact, the taxes on gas should be higher to reduce demand.  Here in the south people drive big ass gas guzzling trucks for no particular reason.  I'll be driving less.  It is almost $70 for fill up my little 4 cylinder 2-door... and that is at Costco

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4 hours ago, Troy said:

In the early days of the pandemic gas was a cheap as I've seen it in recent memory less than 2 bucks!  

 

You don't think American's are not complaining enough about the price of gas?

Americans aren't complaining enough when the price of gas is 2.5 times higher than it was two years ago. I'm waiting for the  Fossil Fuel Fleecing Matters protests. 

 

I'm a Sam's Club member myself. But, I've driven past and seen that line of vehicles at Costco so long that I thought they were giving gas away. 🤣😎

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Drivers in the U.S. are not complacent. But the TV news media enjoy making high pump prices seem like a game, interviewing countless motorists in gas stations in a never-ending quest for the best 30-second quip. 

Of course, it's a game to well paid goofballs. The same as it was when one glimpsed interviews of struggling apartment tenants fearful of skyrocketing rents and food prices. 

Yes, people complain and grouse. But I guess since no one is driving a military tank through the front gates of the homes of oil company execs, some may get the impression everyone is okay with the price gouging and greed.

But few are. People have simply cut back on unnecessary car trips. 

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8 hours ago, Stefan said:

Yes, people complain and grouse. But I guess since no one is driving a military tank through the front gates of the homes of oil company execs, some may get the impression everyone is okay with the price gouging and greed.

Protest does not have to be that extreme.  A good old fashioned boycott would send a message.

 

If American motorists decided to stop driving and carpool and take other measures to avoid buying gas for 1 month, the oil industry would feel the pinch and reduce the price of gas immediately.

 

As long as Americans continue to fill up gas tanks and jump in vehicles or take flights  all over the place, there is no incentive to lower fuel prices.  😎

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@ProfD perhaps but who do you think uses more gasoline truck drivers, busses, industry and airlines, or people like you and me? 

 

We can certainly drive less and carpool.  I could probably make it a month on a tank of gas if I did not venture outside my neighborhood -- something I have never done.

 

That said, lower demand would drove prices down, but any decrease would be temporary and end as soon a people got back into their trucks.  

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18 minutes ago, Troy said:

perhaps but who do you think uses more gasoline truck drivers, busses, industry and airlines, or people like you and me? 

Great question.  Considering oil companies still posted a profit during the pandemic, I think the transportation industry accounts for a greater chunk of fuel costs. 

 

So, instead of American motorists boycotting for 1 month, it would have be more like 3-4 months in order to really get their attention.😁

 

Of course, I do not expect or foresee that happening at all.  The American middle class has been expanded just enough to absorb inflation up to a point. 

 

Economists know the breaking point of the house of cards on which our economic system is built.  They've probably forecasted that  Americans can live with a national average of $8 per gallon.  😎

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If my calculations are right, $8 a gallon is about what a gallon of gas costs in Cape Town, South Africa now (I was lucky enough to spend the month of April there). 

 

Here is something else to consider.  Uber rides, in Cape Town, were so plentiful and super cheap -- it did not make sense to drive!  In NYC depending on the time of day an Uber ride to the JKF airport might cost $80 from Manhattan.  A similar ride in Cape Town might cost $4 -- seriously.  I took a 40 minute ride in Cape Town and it cost me something like $15. Could something similar happen with Uber prices here?

 

As people struggle to make ends meet there will be more demand for Uber drivers. If that demand increases competition may drive prices for Uber rides down to the point were people start ditching their cars.  We already see this trend among younger people.

 

There is also a trend toward electric vehicles.

 

Meanwhile a secondary market for will have criminal entrepreneurs syphoning gasoline from cars and trucks to resell to people who have to drive but can't afford to pay for gas -- like the aforementioned Uber Drivers. 

 

People who can afford to pay $8 a gallon will gladly continue to do so while benefiting from the much shorter lines. 

 

I agree @ProfD, I can see $8 gas in our future.

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The steep increases in gasoline and diesel pump prices have little to do with any war in Ukraine. They are the result of greed and price gouging.

Of course, there is more demand for gasoline and diesel these days. Because more people have cars or are renting and leasing them. 

No amount of car pooling is going to help. 

Because too many legislators, regulators and industry spokesmen love it. The only folks who have consistently pushed back against this type of profiteering have been retail energy watchdogs. 

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Alternative forms of transportation will definitely spring up from this oil money grab.

 

Ride-sharing companies like Uber work within the economy of the area they service.  The same ride/distance will cost more in NY than DC or Albuquerque. 

 

Electric Vehicles (EVs) will be more common in the US within the next 5 years or so.  A few things I notice/speculate:

 

1) The purchase price of an EV is higher than its gasoline equivalent. 

2) Oil companies are being allowed to make maximum profits on fossil fuel before EV takes off

3) EV will get the full green light when gas companies have installed charging stations at their locations and monetize it

 

The current climate is definitely ripe for a secondary market where criminal entrepreneurs siphon and resell gas.

 

But again, I think Americans are comfortable enough to pay $8 per gallon at the pump instead of pulling into an alley to fill up. 😁😎

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That is not a solution. Because of the same problem. Supply and Demand and freedom to choose your customers.

I'm from New York City.  For years, some private car service companies and Yellow Cab companies simply refused to pick up Blacks.

While they still working, Mike McAlary, Jimmy Breslin, Pete Hamill and other fair minded newspaper columnists wrote about this all the friggin' time. 

If you live in the suburbs or are in mostly White areas, sure this proposal seems grand. But what about Working Class People of Color?
 

So, that won't work for everyone. 

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15 hours ago, Stefan said:

For years, some private car service companies and Yellow Cab companies simply refused to pick up Blacks.


If you live in the suburbs or are in mostly White areas, sure this proposal seems grand. But what about Working Class People of Color?
 

So, that won't work for everyone. 

More black folks need to get into the business of providing transportation services.  😎

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Not that easy for newbies to enter this industry.

1) There's high upfront costs for a roomy late model vehicle, with room for liquor, computer screen and even sat/tv.

2) Patience (and maybe payoffs may be required for permits and licenses) Only a certain number are allowed in some cities.

3) Costs of doing gas, parking violations, car repairs and insurance for a livery vehicle may be enormous. 

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8 hours ago, Stefan said:

Not that easy for newbies to enter this industry.

1) There's high upfront costs for a roomy late model vehicle, with room for liquor, computer screen and even sat/tv.

2) Patience (and maybe payoffs may be required for permits and licenses) Only a certain number are allowed in some cities.

3) Costs of doing gas, parking violations, car repairs and insurance for a livery vehicle may be enormous. 

It reads like a great business opportunity for black investors.

 

Appeal to athletes, entertainers and others who spend their money utilizing livery vehicle services anyway. 

 

IMO, this is the main reason black wealth is stagnant.  Our people are way behind the 8 ball when it comes to entrepreneurship and reinvesting our resources. 

 

In fact, business should be a fundamental part of the black educational process beyond learning how to read and write; speak and spell. 

 

The *jobs* white folks have been so gracious to provide are going to dry up one day. 

 

Black folks won't be able to fault anyone else for failing to create businesses  leading to self-sufficiency.

 

Stop waiting for someone else to hand out opportunities and learn how to make it happen by any means necessary.  😎

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Pie-in-sky ideas seem great, until one starts digging and finds that they have little chance of coming to fruition.

Where is the investment capital going to come from these new car service industry entrants? 

I want someone to tackle the car service industry wide restrictions I already mentioned. Why do people gloss over those?

If there are a limited number of hack, private taxi and bus licenses available how does one overcome this?

This is why I ask for WORKABLE solutions. 

 

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https://www.roadandtrack.com/news/a40310705/why-are-gas-prices-so-high/

 

No surprise that oil companies are posting record profits as Americans pay record prices for a gallon of gas.

 

Meanwhile, the gov't muses over whether or not it should place a higher tax on oil company profits.  

 

I seriously doubt politicians have a real desire to agitate their paymasters and shareholders. 😎

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Pump prices have actually dropped about 10 cents a gallon in New Jersey and New York this past week.

Proving what I've been saying: Higher pump prices are not the fault of President Biden. They are reflection of price gouging and greed. 

Presidents can never control retail prices of gasoline and diesel. Unless they order direct military action against international suppliers. 

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I wonder if it's a coincidence that gas price dropped a dime because oil companies posted record profits. 

 

IMO, POTUS or any President/world leader can influence gas prices.

 

POTUS has a good reason for going to that meeting in Saudi Arabia.  Maybe get the Saudis an/or OPEC to open the spigot. 😎

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