Gas just dropped to $5.09 near me, fluke?

[MrsPete]

Dropped?

 

[lilaurora]

Costco is $5.85 a gallon today.

Local Costco in southern Wisconsin dropped to $4.61 today.

 

[mamamary]

Ours went down 10 cents today.

 

[Minnesota!]

We had enough reward points to fill up for 51 cents/gallon tonight. Cost 8.30 total. It felt glorious

 

[MillauFr]

And domestic production has dropped off precipitously.

That is a false statement. I think the issue with pricing is many companies are shipping oil overseas where it will fetch higher prices. I can't blame them and if I were the CEO I would do exactly the same thing.

 

[disneychrista]

Costco is $5.85 a gallon today.

Our local Costco was $6.15 on Tuesday.

 

[xdan0920]

That is a false statement. I think the issue with pricing is many companies are shipping oil overseas where it will fetch higher prices. I can't blame them and if I were the CEO I would do exactly the same thing.

Ehhhh.

So compared to 2021, you’re right. But if you go back to 2020, you’re wrong. It’s dropped nearly 10%.

 

[MillauFr]

Ehhhh.

So compared to 2021, you’re right. But if you go back to 2020, you’re wrong. It’s dropped nearly 10%.

So a 10% decrease is dropping off a cliff? I think not.

 

[Figmentv]

So a 10% decrease is dropping off a cliff? I think not.

Actually a sustained reduction of 10% in refining is very significant.

I worked on what was the second largest refinery in the Western Hemisphere for 23 years. We supplied 15% of the gasoline on the East Coast. When our largest gasoline producing units were down for maintenance or other reasons, even for a couple of weeks, gas prices on the East Coast went up. Like many other industries, refining is experiencing labor shortages, particularly in Maintenance. Routine planned maintenance of production units cannot be put off and right now it’s taking longer to get a unit turned around.

There are several other factors involved in the high prices: crude sales by speculators who purchased low, geopolitical issues, and energy corporations simply making hay while the sun shines. It’s an up and down business and they’re in a boom time right now.

 

[RedAngie]

Gas hasn’t hit $5 here yet. And a few stations went down several cents yesterday. In the $4.89 range now.

 

[xdan0920]

So a 10% decrease is dropping off a cliff? I think not.

I didn't say "dropping off a cliff". You don't know the industry and it shows. Sit this one out.

 

[ronandannette]

Gas hasn’t hit $5 here yet. And a few stations went down several cents yesterday. In the $4.89 range now.

The price here for a US gallon of gas in CAD yesterday ($1.92 CAD) was $7.22, which is $5.55 USD. It’s higher in some parts of the country and I haven’t heard any reports of significant price decreases since the escalation started.

 

[mrodgers]

Hopefully if it's everywhere the drop will bring prices down in grocery stores, I blame gas prices 100% for all the price distortions. Saw tortilla chips today that were nearly $6 and was shocked, I was away from in store shopping while recovering from surgery and feel like Rip-Van-Winkle waking up to a changed world.

The grocery prices are inflated due to gas prices from the price they were inflated to due to gas prices the last time they were inflated due to gas prices. I see it as purely wishful thinking that the elevated grocery prices are going to come down because gas prices came down $0.20.

I always felt it was by design. Raise gas prices a lot, then reduce them down just a little and we are happy.

 

[RedAngie]

The price here for a US gallon of gas in CAD yesterday ($1.92 CAD) was $7.22, which is $5.55 USD. It’s higher in some parts of the country and I haven’t heard any reports of significant price decreases since the escalation started.

Canadian gas prices have been higher than US for decades, adjusted for exchange rate and liters to gallons. I was shocked the first time I saw it back around 1980.

Same with cigarettes and liquor.

 

[MillauFr]

I always felt it was by design. Raise gas prices a lot, then reduce them down just a little and we are happy.

Why do private corporations care if we are happy? People have zero loyalty to gas stations.

 

[MillauFr]

FWIW. I own a gas station.

Since you own a gas station how are you preparing for the future and more people drive electric vehicles? In the next few years demand will drop precipitously. Are you converting some of your space to charging spots?

 

[mrodgers]

Why do private corporations care if we are happy? People have zero loyalty to gas stations.

Because, in general and not gas station or oil business specific, a Capitalistic system needs to be in balance between the consumers and the producers. Both are at fault in the producers have every right to increase their prices to what the consumers are willing to pay while the consumers show that they are willing to pay more and more and not take action other than to complain while they hand over their money.

Private corporations should care if the consumers are happy, or else the consumers stop being consumers and then the corporations have nothing. Unfortunately, the consumer has stated they are fine with the costs all skyrocketing as shown by not eliminating travel due to gas prices or not putting themselves on a year long waiting list willing to pay thousands over the price to get a product.

 

[longboard55]

Oil is an open traded commodity, no one was complaining when it was in the 40s. Now you can see why we need farm subsidies, to keep food prices stable

 

[MillauFr]

Unfortunately, the consumer has stated they are fine with the costs all skyrocketing as shown by not eliminating travel due to gas prices or not putting themselves on a year long waiting list willing to pay thousands over the price to get a product.

Exactly correct. Whining matters zero. Actions matter.

 

[wabbott]

Wholesale gasoline down today.

https://markets.businessinsider.com/commodities/rbob-gasoline