Price of gas

[twofbyc]

This is ironic: people whining about the price of gas (locals on TV) yet pumping gas at a station where gas is 30 cents a gallon higher than at one two miles away.
I never have a problem getting gas at the cheaper station, they have a lot of pumps; yet I continually pass these stations where gas is 25-30 cents higher per gallon and their pumps, although not slammed, were very busy. I don’t get it.
Used to have gas wars when I first started driving, and everyone knew who had the cheapest gas - then it was usually only a few cents difference. Now it’s almost always a quarter or more per gallon; I don’t understand the big price difference, for one, but I don’t understand why people would complain yet willingly pay more.

 

[4Q Basket Case]

For some reason, the price of gasoline has latched onto the minds of the public. If that price is low, it’s good. If it’s high, it’s bad.

I’ve never understood the impact it has on the consumer’s economic psyche. If it’s $5 a gallon, it adds less than the price of a Chipotle (or similar) dinner to the price of a vacation. Yet, all of a sudden, recreational tourism drops off a cliff.

There’s a reason economics is called, “the dismal science.” Thing is, the general public gives no thought as to the context of the price. In May of 2020, it was under $2.00 a gallon. Got under $1.50 here for a while. Want to go back to those days? I don’t think so.

Moral to the story: Don’t measure the health of the economy by how much it costs to fill your gas tank. Two entirely different things.

 

[twofbyc]

For some reason, the price of gasoline has latched onto the minds of the public. If that price is low, it’s good. If it’s high, it’s bad.

I’ve never understood the impact it has on the consumer’s economic psyche. If it’s $5 a gallon, it adds less than the price of a Chipotle (or similar) dinner to the price of a vacation. Yet, all of a sudden, recreational tourism drops off a cliff.

There’s a reason economics is called, “the dismal science.” Thing is, the general public gives no thought as to the context of the price. In May of 2020, it was under $2.00 a gallon. Got under $1.50 here for a while. Want to go back to those days? I don’t think so.

Moral to the story: Don’t measure the health of the economy by how much it costs to fill your gas tank. Two entirely different things.

Tell that to the media - used to be, gas and housing weren’t used in the calculation of the inflation rate because of the volatility of both sectors. I don’t know if that changed, but every time the media talks about inflation, the price of gas and cost of housing are the first words out of their mouths.
Although both sectors have been affected by the pandemic (the biggest root cause of our current inflation), neither has been affected to the extent the wholesale/retail sector has; wages have gone up (and it’s about damn time although we’re still not where we should be) and that’s been a contributing factor although less impactful in a strong economy, like we have now.
Back in the days of gas wars, we all pretty much drove gas guzzlers. Current prices shouldn’t be that big of a deal, but the media keeps harping on it and the sheep keep eating it up; is there an underlying reason for this?

 

[crimsonaudio]

Moral to the story: Don’t measure the health of the economy by how much it costs to fill your gas tank. Two entirely different things.

In this case, people are not only frustrated about the price of gas (which costs 65% more than one year ago) as well as everything else (inflation is 6.81% Nov 21 over Nov 20).

I think gas prices have long been viewed as an easy layman's way to see how things are going economically. There are exceptions, of course, but generally speaking higher gas prices coincide with a poorer economy.

 

[B1GTide]

In this case, people are not only frustrated about the price of gas (which costs 65% more than one year ago) as well as everything else (inflation is 6.81% Nov 21 over Nov 20).

I think gas prices have long been viewed as an easy layman's way to see how things are going economically. There are exceptions, of course, but generally speaking higher gas prices coincide with a poorer economy.

I would need evidence to believe this. We had record breaking gas prices during the Obama administration here, along with an extraordinary economy.

 

[Chukker Veteran]

For some reason, the price of gasoline has latched onto the minds of the public. If that price is low, it’s good. If it’s high, it’s bad.

I’ve never understood the impact it has on the consumer’s economic psyche. If it’s $5 a gallon, it adds less than the price of a Chipotle (or similar) dinner to the price of a vacation. Yet, all of a sudden, recreational tourism drops off a cliff.

There’s a reason economics is called, “the dismal science.” Thing is, the general public gives no thought as to the context of the price. In May of 2020, it was under $2.00 a gallon. Got under $1.50 here for a while. Want to go back to those days? I don’t think so.

Moral to the story: Don’t measure the health of the economy by how much it costs to fill your gas tank. Two entirely different things.

I’m glad to see this point of view. I don’t bother to keep up with what I paid two weeks ago for gas compared to the current price, and I don’t shop around for the cheapest price. I consider it incidental and not worth the effort. It does catch my attention when a tank of gas costs a good bit more than it did in the fairly recent past, but it hasn’t motivated me to keep up with where I can find the cheapest.

I think our biggest challenge is dealing with climate change and global warming. I also think the Dems are the only party that will even remotely address the problem. So frankly, I suspect I have more tolerance for higher prices under a Democratic administration.

I don’t mean Dems have a better approach to regulating gas prices. I just think overall, the climate change problem has the best chance of being dealt with if the Dems are in charge, and I’m inclined to be a little more tolerant.

 

[92tide]

I would need evidence to believe this. We had record breaking gas prices during the Obama administration here, along with an extraordinary economy.

yeah, by most measures, the economy is cranking right now

 

[Bamaro]

Considering the real price adjusted for inflation and the fact that cars get much better mileage now than ever before, the current price is not really bad. Its easy to find a decent car that gets 30 - 40 MPG.

 

[uafanataum]

Considering the real price adjusted for inflation and the fact that cars get much better mileage now than ever before, the current price is not really bad. Its easy to find a decent car that gets 30 - 40 MPG.

Exactly. And unless you live in a different city than you work in you can drive to work and back home on 1 gallon of gas. Many of the people worried about the gas spend more on coffee in a day than they do on gas.

 

[JDCrimson]

Not gas, but a pound of bacon cost $12 here locally, ridiculous, essentially doubled. Bacon ain't made overseas and consumption hasn't changed. Personally I think there is a lot of greed in the economy right now...

 

[twofbyc]

I’m glad to see this point of view. I don’t bother to keep up with what I paid two weeks ago for gas compared to the current price, and I don’t shop around for the cheapest price. I consider it incidental and not worth the effort. It does catch my attention when a tank of gas costs a good bit more than it did in the fairly recent past, but it hasn’t motivated me to keep up with where I can find the cheapest.

I think our biggest challenge is dealing with climate change and global warming. I also think the Dems are the only party that will even remotely address the problem. So frankly, I suspect I have more tolerance for higher prices under a Democratic administration.

I don’t mean Dems have a better approach to regulating gas prices. I just think overall, the climate change problem has the best chance of being dealt with if the Dems are in charge, and I’m inclined to be a little more tolerant.

Well, groceries and just about everything else have gone up, so if I can save $10-20 a week on gas, it softens the blow for us retirees.

 

[Chukker Veteran]

Well, groceries and just about everything else have gone up, so if I can save $10-20 a week on gas, it softens the blow for us retirees.

Sure and I agree. I try to be thrifty and not waste money myself. I just haven’t focused on gas prices as much as I might should.

 

[twofbyc]

Sure and I agree. I try to be thrifty and not waste money myself. I just haven’t focused on gas prices as much as I might should.

What I don’t understand is the price difference- stations 2.3 miles apart had a $.26 per gallon difference. I always thought virtually every station paid the same price for their gas (I could be wrong); if that’s true the higher priced stations are making bank.
I know the markup on gas at the pump was only a few cents per gallon back in the day; I read it’s about 7-10 cents per now.
So the average station sells 4000 gal/day.; if the station selling the cheapest is making 7 and the person selling highest is making 37 cents per, that’s a big difference - $280 vs $1480 per day.
I just don’t understand the difference; I’m guessing it’s the station owner’s preference or financial requirements. But I won’t buy the higher priced gas.

 

[Chukker Veteran]

I don’t understand why there would be such a big price swing between local gas stations. Normally I would think supply and demand would make it difficult to milk the public with higher prices, but who knows…

full disclosure…I worked in real estate befoe I retired. I sold a shopping center to a man that also has a gas station. I’ve been buying gas from him ever since.

 

[Ledsteplin]

What I don’t understand is the price difference- stations 2.3 miles apart had a $.26 per gallon difference. I always thought virtually every station paid the same price for their gas (I could be wrong); if that’s true the higher priced stations are making bank.
I know the markup on gas at the pump was only a few cents per gallon back in the day; I read it’s about 7-10 cents per now.
So the average station sells 4000 gal/day.; if the station selling the cheapest is making 7 and the person selling highest is making 37 cents per, that’s a big difference - $280 vs $1480 per day.
I just don’t understand the difference; I’m guessing it’s the station owner’s preference or financial requirements. But I won’t buy the higher priced gas.

Usually the price difference between the high end gas, like Chevron, and the cheap gas are the additives the high end contains. The additives help keep the engine clean, as well as better gas mileage.
The higher gas prices affect lower income people a lot. Middle income and up can absorb it better.

 

[twofbyc]

Usually the price difference between the high end gas, like Chevron, and the cheap gas are the additives the high end contains. The additives help keep the engine clean, as well as better gas mileage.
The higher gas prices affect lower income people a lot. Middle income and up can absorb it better.

Well, I’ve seen it here in the last couple of years that you couldn’t cover the city from one end to the other and find more than a nickel’s difference in the price of gas; I’ve done it. So the additives reasoning does not allow for such large discrepancies now.
Valero by me is 3.23 today; Chevron 3 miles away is 2.93.

 

[Chukker Veteran]

I’ve noticed a lot of the bigger chain gas stations seem to offer a better price than smaller, individual stations can. Maybe it has something to do with the amount of gas each buys from the supplier.
I had a friend that had an appliance store…they could not begin to compete in prices with the big box stores they were up against.

 

[TIDE-HSV]

I have two choices - Costco, almost always the cheapest, and 2) The Texaco station at the bottom of the hill, which is the closest. It's also one of the few stations with no-ethanol gasoline, which I use in all my small engines...

 

[Chukker Veteran]

I’ve phased out my small gas engines. With battery powered machines you sacrifice some power but they are usually much lighter and easier to handle. They are also quiet.

 

[TIDE-HSV]

I’ve phased out my small gas engines. With battery powered machines you sacrifice some power but they are usually much lighter and easier to handle. They are also quiet.

Interesting. I've done the same. I have a blower, small chainsaw, lawnmower, all Stihl brand. I still have two larger chainsaws, and a pole chainsaw, for the bigger stuff. I also have a big John Deere rider, so I still buy the non-ethanol gas for the chainsaws and the JD. Our three acres are mostly trees, but there are a couple of grassed areas I don't want to push the battery lawnmower around and they're a little rough for it. It's great for the "tame" zoysia part of the yard...