Why are gas prices so high (and why do they keep climbing)?

[Edd]

I don't think I blamed Biden or even mentioned him.

Just that this was predicted and brushed off as some conservative fear mongering.



Well, that didn't age well either:


View attachment 14851

The headline that you linked mentions Biden sooo, you kinda did.

 

[Herdfan]

The headline that you linked mentions Biden sooo, you kinda did.

I guess that is true. But note my reply to @SuperMatt regarding the timeline of price increases. The majority of it was BEFORE the war.

 

[SuperMatt]

I guess that is true. But note my reply to @SuperMatt regarding the timeline of price increases. The majority of it was BEFORE the war.

First, not actually true; look at your analysis more closely (prices you listed are monthly averages and you can get weekly charts from EIA or gas buddy for example).

And consider that you are comparing a 14 month period to a 3 month period.

Second, I feel like something big happened in early 2020, resulting in gas going down to $1.75 and then something else big happened in December 2020 that caused it to start climbing back up. Did it involve masks or something? Maybe you can refresh my memory.

The title of this thread is WHY are gas prices so high. There are some obvious reasons, and perhaps some less obvious ones to explore. Posting memes about Biden surely doesn’t help answer the question at all, unless one pairs them with notes about policies or actions of his that affected prices.

 

[Yoused]

I guess that is true. But note my reply to @SuperMatt regarding the timeline of price increases. The majority of it was BEFORE the war.

The authors of the Center for American Progress post wrote that, in the first quarter of 2022, these companies "brought in more than 300 percent more in profits than in the first quarter of 2021. That is a total of more than $35 billion in profits in just three months."
…

The windfalls mark a seismic shift from how oil companies were performing at the start of the pandemic. The first wave of lockdowns saw demand for energy crater. Crude oil prices even turned negative in the spring of 2020 … The US is now experiencing what happens when the market swings in the opposite direction, and companies with pricing power are making a killing.​

In other words, this is Austrian School free market economics at its finest. The oil companies hit a slick in '20 when the pandemic caused demand to drop – now those companies are making up the difference by pushing prices up because they can. Also, they need that extra income to fight the badnasties who are trying to use Global Warming to cripple them.

 

[The-Real-Deal82]

It’s only going to get worse. My advice, fill up often. As the price is likely to only get worse.

Yep. Last Saturday morning I filled my car up and it was £1.83.9 a litre, up from £1.81.9 a few days before. I put some in yesterday and it was £1.88.9 in the same Morrisons. Bizarrely though this morning they’ve put it down to £1.82. Should have filled up today! [emoji2359]

 

[The-Real-Deal82]

My brother, who is a staunch Trump supporter and hates Biden, is losing his mind over these prices because he has to tow a boat for a fishing guide business. He's constantly raging to anyone who will listen, most of which have blocked him. One thing I'll never get about the Trump people is how angry and out of touch with reality they are.

To give any president, I don't care if it's Trump, Obama, whoever, that much power over you to the point it is ruining your life is beyond me. Yes, gas prices are high everywhere and Biden is in charge so he'll naturally take the hit. We couldn't write off nearly as much in office expenses when Trump was in office and ended up paying way more as a result. These things suck, but it doesn't ruin your life unless you let it.

Your brother should look at fuel prices in the UK and France which are the highest in Western Europe where we are currently paying £8.50-£9 ($10-$11) a gallon. He might feel a bit better. Your President Biden has nothing to do with our costs lol.

 

[Apple fanboy]

Just looking at the maths, you guys are paying around £1.10 a litre if the internet maths is correct. We are paying £1.83 a litre.
Not sure what you guys are complaining about!

 

[SuperMatt]

Just looking at the maths, you guys are paying around £1.10 a litre if the internet maths is correct. We are paying £1.83 a litre.
Not sure what you guys are complaining about!

I remember as a kid visiting England in 1987 seeing gas (sorry petrol) prices, then converting litres to gallons and pounds to dollars, and realizing it was 3-4x more expensive than in America!

 

[Yoused]

Just looking at the maths, you guys are paying around £1.10 a litre if the internet maths is correct. We are paying £1.83 a litre.
Not sure what you guys are complaining about!

Twelve states in the lower 48 have more land area than the Isle of Britain. California is nearly twice the area of the island and, measured corner-to-corner, is about the same distance as Land's End to Out Stack on the farthest reach of the Shetlands. Montana, corner-to-corner, is the same as Penzance to John O' Groats (the extent of the main island).

Our system has eschewed the concept of mass transit in favor of roads and automobiles. We are heavily dependent on our cars and a large number of Americans live in unwalkable/unbikable suburbs. Add to that the EPA excluded pickups and SUVs from its CAFE/MPG standards, which caused the industry to push hoggy vehicles hard.

So yeah, it is a mess. And when things get bad, people look for a change, which probably means next year the country will mostly be back in the hands of those who will push us toward worse.

 

[Apple fanboy]

I remember as a kid visiting England in 1987 seeing gas (sorry petrol) prices, then converting litres to gallons and pounds to dollars, and realizing it was 3-4x more expensive than in America!

I wish we were paying 1987 prices.
When I first started driving it used to cost around £12 to fill up. Now it’s £100.

 

[Apple fanboy]

Twelve states in the lower 48 have more land area than the Isle of Britain. California is nearly twice the area of the island and, measured corner-to-corner, is about the same distance as Land's End to Out Stack on the farthest reach of the Shetlands. Montana, corner-to-corner, is the same as Penzance to John O' Groats (the extent of the main island).

Our system has eschewed the concept of mass transit in favor of roads and automobiles. We are heavily dependent on our cars and a large number of Americans live in unwalkable/unbikable suburbs. Add to that the EPA excluded pickups and SUVs from its CAFE/MPG standards, which caused the industry to push hoggy vehicles hard.

So yeah, it is a mess. And when things get bad, people look for a change, which probably means next year the country will mostly be back in the hands of those who will push us toward worse.

I appreciate the US is bigger than the U.K. but most people aren’t commuting from one side of the state to the other every day I wouldn’t have thought.
My daily (well 3-4 days a week at the moment) is a 50 mile round trip give or take.
I expect many are doing more or less the same over there?

 

[The-Real-Deal82]

Twelve states in the lower 48 have more land area than the Isle of Britain. California is nearly twice the area of the island and, measured corner-to-corner, is about the same distance as Land's End to Out Stack on the farthest reach of the Shetlands. Montana, corner-to-corner, is the same as Penzance to John O' Groats (the extent of the main island).

Our system has eschewed the concept of mass transit in favor of roads and automobiles. We are heavily dependent on our cars and a large number of Americans live in unwalkable/unbikable suburbs. Add to that the EPA excluded pickups and SUVs from its CAFE/MPG standards, which caused the industry to push hoggy vehicles hard.

So yeah, it is a mess. And when things get bad, people look for a change, which probably means next year the country will mostly be back in the hands of those who will push us toward worse.

Public transport is atrocious in the UK to be outside of major cities. It would take me 13 hours to get to work for 8am if I only used buses and trains. We are just as reliant on our cars I would say.

 

[SuperMatt]

I appreciate the US is bigger than the U.K. but most people aren’t commuting from one side of the state to the other every day I wouldn’t have thought.
My daily (well 3-4 days a week at the moment) is a 50 mile round trip give or take.
I expect many are doing more or less the same over there?

Average miles driven per day by a person in America: 29. I know many people around here who drive 50 miles ONE way to work, so 100 miles of driving a day.

I used to drive 35-40 miles each way to work, which drove me nuts and led me to buy a place 5 miles from my job.

 

[Apple fanboy]

Average miles driven per day by a person in America: 29. I know many people around here who drive 50 miles ONE way to work, so 100 miles of driving a day.

I used to drive 35-40 miles each way to work, which drove me nuts and led me to buy a place 5 miles from my job.

So about the same as the U.K. then. So you guys are much better off at the pumps then!

 

[Apple fanboy]

Public transport is atrocious in the UK to be outside of major cities. It would take me 13 hours to get to work for 8am if I only used buses and trains. We are just as reliant on our cars I would say.

Agree. We get two buses a day in our village. Not really going to work for my trip to Birmingham or anywhere else!

 

[Herdfan]

I appreciate the US is bigger than the U.K. but most people aren’t commuting from one side of the state to the other every day I wouldn’t have thought.

No, but a 10 mile commute in a large city can take an hour. Or more.

 

[fooferdoggie]

No, but a 10 mile commute in a large city can take an hour. Or more.

thats why I ride my e bike I can do it in 35 to 40 minutes and get exercise.

 

[Apple fanboy]

No, but a 10 mile commute in a large city can take an hour. Or more.

Same as the UK then in the big cites.

 

[The-Real-Deal82]

No, but a 10 mile commute in a large city can take an hour. Or more.

You should try driving in a densely populated UK lol. It takes me 45 minutes to drive 14 miles to work at the moment. I live and work 35 miles outside the capital too.

We pay way more for our fuel and still have the same traffic problems you guys have.

 

[thekev]

I bought my EV in 2016 to have less maintenance and freedom from gas price volatility. But I understand many people had worries about the new technology, the idea of range running out, etc. I think everybody should get an EV, but I get it. We just need more ”evangelism” on how much better an EV is.

Personally, I rent at the moment, and I don't have a charging station at my residence. There are charging stations at some of the shopping centers, including a few grocery store parking lots. They are almost entirely Tesla (not buying a Tesla).

Hmmmm.........

Here is the EIA.gov chart of gas prices. When Biden was inaugurated, January 2021, the average cost of all grades of gasoline was $2.420. Russia invaded Ukraine in February of 2022 when the price was already $3.611. So maybe the last few months the price increase is related to Ukraine amounting to a $0.934 increase. But I would like you to explain how the previous $1.191 increase from January 2021 through February 2022 has anything to do with Ukraine. I'm not blaming Biden, but it all certainly is not related to Ukraine no matter how much MSNBC tells you it is.

2021	2.420	2.587	2.898	2.948	3.076	3.157	3.231	3.255	3.272	3.384	3.491	3.406
2022	3.413	3.611	4.322	4.213	4.545

Negotiations in 2020 didn't help, and it presumably would have shown up less while demand was low. Biden did shut down production of the Keystone XL pipeline, but it's unlikely that would have been used in gasoline due to its composition. That stuff is used in asphalt though. It's unlikely you're going to find a lot of legislation backed by Biden that would offset the market that much.

Special Report: Trump told Saudi: Cut oil supply or lose U.S. military support - sources

By Timothy Gardner, Steve Holland, Dmitry Zhdannikov and Rania El Gamal

www.reuters.com