fetzler Loc: North West PA

It is important that the price of oil and gasoline has a lot do with politics. The USA and Russia have plenty of oil to supply domestic needs. In Russia the price of gas is about $2.40/ gal and that is higher than recent times because the the Ruble has increased its value relative to the Dollar.

The Oil Futures market is fearful of what politicians will do to them. There is the Russo-Ukraine war to consider but also the erratic and destructive behavior of our President (not politics just fact)

People drive various types of cars for a variety reasons and tasks. Pickups are necessary for many Farmers, Construction workers. They are useful for towing and snow plowing. A Fiat may be OK if you are 4 ft 9in and live in a southern city but TOTALLY unsuitable if you are 6 ft 6in and live in a northern state and in a rural area.

It is important to note the oil and gas has raised more people from poverty than perhaps any other factor. Remove everything made from plastic (including synthetic clothing, medical devices, and prescription drugs (these are not plastic but come from oil)) , electricity, and motorized vehicles from you life and see how you will fare. You life will look like 1830 when the average life span was a bit less that 40 years.

jerryc41 Loc: Catskill Mts of NY

They taught you well, my son.

jerryc41 Loc: Catskill Mts of NY

"Profit" is what is left over after paying the bills, including taxes. Oil companies have always gouged the consumers, even when it was $0.25/gallon.

sippyjug104 Loc: Missouri

There are 129 refineries in the United States and not all of them are producing all of the time due to maintenance and modifications. These refineries produce other products from crude other than gasoline for there are some 6,000 products that are derived from crudes such as the shingles on our homes and the asphalt we drive and park on.

The larger issue is that political environmental lobbying prevents building a new refinery making it as difficult as building a nuclear power plant and most new plans die on the drawing board. Also, the United States exports a large amount of what the refineries produce for we now live (and suffer from) the World Market.

Canisdirus

Ahem...net profit of 8% is not gouging.

Apple's 22%...that's gouging...and folks love them for it.

tropics68 Loc: Georgia

Bingo!
I remember when as a kid back in the fifties I worked after school in a Pure Oil gas station a couple of blocks from my house. Those were the days of gas price wars and I remember the price dropping to $.17/gallon. The guy who owned the station told me that no one makes money on the gas. The money was in repairs, oil changes, tires and batteries. Today very few stores that sell gas do or sell any of those things. What they do sell is groceries, soft drinks, and in a lot of cases beer and wine. The stuff they have on the shelf inside. They still need the gas to draw the customers but they cannot afford to sell it at a loss. If they could sell it for less they would. They want to sell what is in the store not what's in the ground.

ad9mac

I haven't researched other States but in North Carolina the State tax is linked to the price of fuel.
As the price/gallon goes up the State TAX goes up. It can never fall below 36.5cents. This year it's 38+cents.
Nice Huh?

I'd be interested to see how much the oil companies make on a gallon of gas v governments.
According to 2021 figues Oil companies markup a gallon about $.27.
Fed and State taxes avg. $57 /Gallon.
Who's making the most?
https://www.theautochannel.com/news/2021/11/22/1074398-who-makes-money-selling-gas.html

docerz

True...but YOU don't have to buy Apple products...it's still a choice.

clint f. Loc: Priest Lake Idaho, Spokane Wa

The “greedy” corporation is the source of income of your retirement fund. The profit is the point of investing. Shutting down North Slope leases and then blaming the oil drillers for not drilling on speculative private leased ground is so absurd that only the government can think it’s a good idea. Shutting down a pipeline, which is an efficient and safe way to deliver crude oil to the refinery, choosing instead to require a fleet of fuel guzzling diesel tanker trucks crowding and degrading highways is sort of ill conceived. The oil companies are run by people more knowledgeable of the business and don’t ignore the problems. They seek innovation and can predict the trajectory of the business. They invest in renewable energy schemes. Gasahol was likely developed on research funded by oil companies. My electricity supplier spent millions developing hydrogen fuel cells. Seems counterintuitive that they would develop something that undercuts their primary commodity, electricity and natural gas. Foreword thinking however.

sodapop Loc: Bel Air, MD

Well Said!!!!

skylinefirepest Loc: Southern Pines, N.C.

Two bucks under trump...four under biden...sorry, that ain't supply and demand...and the turkey just shot down millions of acres of drilling potential while telling us that he's going to get the gas prices down. Trump was a slob but the country absolutely prospered under him.

Jerry Coupe Loc: Kent, WA

The petroleum industry does use the world wide crude market to justify increasing prices when crude prices are raising, almost instant increase in retail pump prices to increases in cost per barrel of crude. NOT SO MUCH when crude oil prices are falling. They have built in a lag factor to make sure the retail inventory get sold out first.

My other question: Why can I buy good gas at Costco for .35 -.50 per gallon cheaper than the local Chevron or Shell or Texaco stations? I am pretty sure that Costco is not losing money on their gas prices.

clint f. Loc: Priest Lake Idaho, Spokane Wa

Look at the size of the convenience store attached to their gas station.

tropics68 Loc: Georgia

How sure are you? Keep reality in mind. Costco wants what you spend in the store. Not in the parking lot.

Menkaure Loc: Michigan

They raise the price of gas because they CAN!