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Preparedness & Self-Reliance Forum Survivalism, Livestock, Preparedness, Self Reliant Homesteading, Individual Liberty |
03-15-2021, 04:12 PM
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#11
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Presidents have very little to do with gas pricing. Global market and issues such as the Texas freeze, hurricanes, flooding, terrorism cause huge spikes. Summer always increases gas prices due to demand. It doesn't matter how much USA produces as it will be sold at Global Market price. We get no discounts where ever the oil comes from. A president can ask countries like Saudi Arabia to increase production to help lower pricing but it is not some magical fix or huge reduction in price. Oil, tobacco and alcohol can name their price.
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03-15-2021, 04:47 PM
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#12
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I can remember as a youngster my dad, who used to own an Esso (later to become Exxon) gas station, complaining during a time when prices were rising very fast, for one reason or another. The problem was that when he would sell out of the current stock of gasoline he had in the ground, the prices increased so fast that the money earned from selling the gasoline at today's price was not enough to pay to get the tanks refilled tomorrow or next week. So gasoline retailers were forced to have to speculate on the future prices, and price the current stock of gasoline accordingly so they could afford to stay in business. If they guessed too low, they chance winding up just breaking even, with just enough "profit" to pay for the next load of gasoline. Or even losing money for every delivery. So prices would jump tremendously at the pumps because the retailers HAD to do it that way. They had no way of knowing what the gasoline would cost tomorrow, next day, or next month, so they had to work off of worst case predictions or go out of business in a hurry.
This would happen all the way up the chain of production, and you can see how it would snowball in a hurry.
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