Recent rapid 6 month rise in gasoline prices - Why and what do you pay in your area?

Gasoline prices have been rising at an alarming rate for the past 6 months. From $1.92 per gallon in November 2017 to $2.85 per gallon today in Charlottesville, VA.

And this is happening during a time period that is typically very stable for gasoline pricing in the U.S. We haven't even gotten to the annual "Memorial Day Highway Robbery" event that is staged each year prior to the big driving months of summertime. So, what is going on here?

Is it price gouging by Big Oil because the general consensus is that America is more prosperous lately? Is it a supply vs. demand issue? Or is it something else entirely?

I'm very curious what my fellow members are paying in their local communities. ATS's large member base and global reach is the perfect platform to see how pricing varies from place to place. Maybe some of you even know why that is. Additionally, I'm very aware that our colleagues in Europe have been getting raped by gasoline pricing (re: Petrol) for a long time, so I'm extremely curious if you folks have experienced this rapid rise in gasoline pricing too or if it's limited to the U.S.

So, what are you paying today in your local community? Have you also noticed the rising prices?

This should be very interesting - and enlightening - for all of us.

Thanks.

It recently went from 2.55 to 3.00 a gallon in central Indiana and we don't know why. People ask and talk but no general consensus as to why

$1.49 per litre in South Australia.

That is $6.76 per gallon.

$Aus

Perhaps you are just catching up.

P

originally posted by: Riffrafter
Gasoline prices have been rising at an alarming rate for the past 6 months. From $1.92 per gallon in November 2017 to $2.85 per gallon today in Charlottesville, VA.

And this is happening during a time period that is typically very stable for gasoline pricing in the U.S. We haven't even gotten to the annual "Memorial Day Highway Robbery" event that is staged each year prior to the big driving months of summertime. So, what is going on here?

Is it price gouging by Big Oil because the general consensus is that America is more prosperous lately? Is it a supply vs. demand issue? Or is it something else entirely?

I'm very curious what my fellow members are paying in their local communities. ATS's large member base and global reach is the perfect platform to see how pricing varies from place to place. Maybe some of you even know why that is. Additionally, I'm very aware that our colleagues in Europe have been getting raped by gasoline pricing (re: Petrol) for a long time, so I'm extremely curious if you folks have experienced this rapid rise in gasoline pricing too or if it's limited to the U.S.

So, what are you paying today in your local community? Have you also noticed the rising prices?

This should be very interesting - and enlightening - for all of us.

Thanks.

Oil is a commodity... it is pure supply and demand.

We can pay more than $4.00/gallon here in Chicago. I believe we have the highest gas prices in the US. A lot of it is taxes though.

Big Oil actually doesn't have very large margins. In fact, most large oil companies have profit margins of about 6.5%. So out of every dollar in revenue, only 6.5 cents is actual profit. Compare this to say Apple which has gross profits of almost 40%.

At the gas station level, they are only making about 5 cents a gallon in profit. Gas stations make their money inside from selling you cigs, candy, and condoms...

The price of a barrel of oil has nearly doubled in the same time period so that's a huge factor.

A 42 gallon barrel at $72 equals $1.71 per gallon.
That's before transport and refinery costs.

You also only get about 20 gallons of gas from a 42 gallon barrel.
11 gallons of diesel.
Etc etc etc..

And in all the taxes including sales taxes and its $3 a gallon real quick.

Don't forget that we are heading into summer and just about every state has its own specialized blend that refineries need to account for in the US, so that always spikes the costs along with the heavier summer demand because of more travel as people head out for vacation.

a reply to: Riffrafter

Price of crude is going up with the potential to keep rising, I don't follow the oil market but I remember reading Brent Crude hit $80 per barrel and Total (French) warned that crude oil could hit $100 per barrel... Iranian sanctions apparently.

I don't drive either but I noticed the other day that petrol was between 124 -127 pence per litre... I'll just do rough math and say 126p per litre

4.5 x 126 = 567

So £5.67, in US dollar that's $7.67 according to exchange rates...

Pricey huh?

It's expected to rise here in the UK, around 15p a litre according to this article, that's around 68p a gallon. Nearly a dollar US. About 90 cents.

Link

Prices vary regionally though, hell they vary depending on what part of town you're in.

When I worked at a gas station many moons ago, they try to stay ahead of projections for the price of oil, which will impact the amount of gas they have on hand. (or something like that)

Also most gas stations either break even or lose money on the gas, its all the other junk they sell that they make a profit on.


ETA: oh and here in germany its gone from 1.30 euro per liter to 1.45 in the last couple weeks.

originally posted by: Bluntone22
The price of a barrel of oil has nearly doubled in the same time period so that's a huge factor.

A 42 gallon barrel at $72 equals $1.71 per gallon.
That's before transport and refinery costs.

You also only get about 20 gallons of gas from a 42 gallon barrel.
11 gallons of diesel.
Etc etc etc..

And in all the taxes including sales taxes and its $3 a gallon real quick.

Thanks.

I understand that taxes are a large part of the price per gallon. And $3/gallon isn't ridiculous - it's been that and more many times. What interested me is the almost $1/gallon rise in prices during a time that is typically stable and on the low end of the avg annual price (Nov-May).

If there is a supply and demand imbalance in the form of a lack of supply (for whatever reason) it certainly hasn't hit the news in any significant way. And it usually does, as it impacts almost every person in many forms - both directly for the gasoline itself and indirectly via rising prices in almost every other category due to rising costs to deliver those goods.

Any idea why it's been so quiet re: news?

There is a supply glut.

You are experiencing inflation.

a reply to: Riffrafter

Not sure it has been quiet. I've been aware of it via news headlines I've seen. It's just that higher gas prices is small fish compared to some of the make-hay scandals the press thinks will do more damage.

originally posted by: SR1TX
There is a supply glut.

You are experiencing inflation.

And inflation comes with higher interest rates which have been handed down via the Fed a couple times now. It's also part and parcel of more economic activity.

originally posted by: SR1TX
There is a supply glut.

You are experiencing inflation.

There is a supply glut? That's good to know, although there seems to be a difference of opinion on this issue based on some of the other responses.

I know the inflation rate has been rising, but very slowly and it's still very low historically.

Time to do more research...I'll let you know what I find.

Thanks.

originally posted by: pheonix358
$1.49 per litre in South Australia.

That is $6.76 per gallon.

$Aus

Perhaps you are just catching up.

P

Wouldn't that be for a UK gallon?

A US gallon is 3.78 litres... So 1.49 x 3.78= $5.63 per gallon.

Then converted into US dollars, that's $4.23 per Gallon.

a reply to: Riffrafter

$3.50 for 93. God damnit.

a reply to: Subaeruginosa

Friggin yanks... Have to be different. I kid of course.

I'll revise my earlier math.

126 x 3.78 = £4.76 per US gallon, I rounded to the nereast 10th.

Or

$6.41 per US gallon, roughly. Since prices vary sightly from station to station.

Cant convince the American people to frack more or allow more off shore drilling unless they are hurting at the pump. Make them hurt at the pump and they'll ask you to drill for oil in their back yard.

Oil refineries and distributors pushing out the prime summer fuel. Prepping for vacation time.We did just get a hefty tax cut . The futures speculators are betting on folks using that for vacation.
The question of why is answered

I dont know , I havent bought gas in over a year. A full tank does me 6 months.
But it seems to be on par with the years the country was doing better.
That question answered.

Done
Next

originally posted by: Swills
a reply to: Riffrafter

$3.50 for 93. God damnit.

Ouch!

Although even finding 93 can be a bitch here. I only know of 2 stations that carry it. I'll check their pricing and let you know if we're in your very expensive ballpark.

The other day 22 to fill up went to 30