Gas price includes largest profit margin ever recorded.

Listen, inflation is real I'm not an idiot, but the profit margin on refined gasoline skyrocketed into record profits and that is literally the only reason gas prices are $5/gallon. The corporate figureheads of the industry have never made as much money as they are right now, as tens of thousands of Americans lose jobs they can't afford to travel to, lose homes and properties behind financial hardship, and sacrifice a great deal of their comforts and stability. As America's cost of living is critically balanced on the market prices, which, driven out of proportion to an income that's been, on a graph, a flat line shadowed behind this massive peak it's at today ($1 in 2012 is equivalent in purchasing power to about $1.27 today, an increase of $0.27 over 10 years. The dollar had an average inflation rate of 2.44% per year between 2012 and today, producing a cumulative price increase of 27.31%.). The fact that no single media outlet has even looked at where that $5 goes once it's paid for at the pump to me is an act of complacency to illegal price gouging. If they made 3% profit just a year ago and now it's over 30% it's there anyone out there who sees how under the guise of inflation, business decisions are being made to veil the largest financial gains that industry has ever seen behind "inflation"?

Where's the balance sheets to prove this outrage ??? 😀

originally posted by: xuenchen
Where's the balance sheets to prove this outrage ??? 😀

As long as we're just spouting, the profit margin for gasoline has dropped about 30% in the last year. Indeed, Exxon's profit margin for gas is in NEGATIVE TERRITORY, not that you'd ever know it by reading the outrageous rants on ATS. The one entity that makes the most from a gallon of gas is the GOVERNMENT (state, local, federal.) And if you think that's bad try the EU and the UK where the government takes much more. The one thing that tells me is to NEVER trust ATS about anything factual.

originally posted by: schuyler

originally posted by: xuenchen
Where's the balance sheets to prove this outrage ??? 😀

...The one thing that tells me is to NEVER trust ATS about anything factual.

This! ^^^^^^^^
It never ceases to amaze me how facts get twisted on here.

A surge in global gas prices through the final months of 2021, coupled with an oil price rally to seven-year highs, has seen the world’s largest fossil fuel giants rake in bumper revenues.

British oil major BP reported Tuesday that profits soared to an eight-year high of almost $13 billion, while rival Shell posted annual revenues of $19.3 billion. U.S. competitors Chevron and Exxon Mobil recorded full-year net profits of $15.6 billion and $23 billion, respectively.

[www.cnbc.com...]

originally posted by: ChiefD

originally posted by: schuyler

originally posted by: xuenchen
Where's the balance sheets to prove this outrage ??? 😀

...The one thing that tells me is to NEVER trust ATS about anything factual.

This! ^^^^^^^^
It never ceases to amaze me how facts get twisted on here.

Maybe they don’t get so twisted in the MSM eh? Hmmmm.

The gas companies don't set prices, it's investors trading on what they think future prices will be. Some of that is based on Bidens threats to destroy the fossil fuel industry.

Exactly like when they threaten the gun industry and they also experience record sales.

a reply to: xuenchen
I'd like to see that as well.

Decades ago, my roommate worked for Mobil.
Gas stations could not make a living selling only gasoline.
That is why they sell bread, milk, lotto, liquor, candy, magazines and damn near everything else under the sun.

originally posted by: schuyler

originally posted by: xuenchen
Where's the balance sheets to prove this outrage ??? 😀

As long as we're just spouting, the profit margin for gasoline has dropped about 30% in the last year. Indeed, Exxon's profit margin for gas is in NEGATIVE TERRITORY, not that you'd ever know it by reading the outrageous rants on ATS. The one entity that makes the most from a gallon of gas is the GOVERNMENT (state, local, federal.) And if you think that's bad try the EU and the UK where the government takes much more. The one thing that tells me is to NEVER trust ATS about anything factual.

Not arguing but asking so is this article wrong from Axios?

www.axios.com...

Crack spreads — a proxy for the profits oil refiners pocket — have soared this year as gasoline demand outstrips supply,

The big picture: These spreads measure the gap between the cost of crude oil and the prices of refined products like gasoline — and are a key contributor to both profits at oil refiners and to the prices we pay at the pump.

Crack spreads could come under pressure as the Biden administration does everything in its power to push gas prices lower.
State of play: Shares for major oil refiners got clobbered yesterday, ahead of a meeting between Energy Secretary Jennifer Granholm and top industry executives at the White House Thursday.

Marathon Oil fell 7%, Phillips 66 dropped 6%, and ConocoPhillips tumbled 6%. Chevron and Exxon both fell about 4%.
President Biden publicly urged an increase in gas production, saying bluntly, "I'm calling on the industry to refine more oil into gasoline and to bring down gas prices."
Yes, but: Earlier this year, as crack spreads soared, so did the stock prices of major American refining companies. They're up an astonishing 38% since January, even as the overall market entered bear territory.

The chart above shows the so-called 3:2:1 crack spread, thought to be the best benchmark of margins at refineries (it assumes three barrels of crude are turned into 2 barrels of gasoline and one barrel of diesel, or jet fuel).
The intrigue: While surging margins for gasoline makers opens the industry up to charges of gouging, industry officials argue that they are producing as much gas as possible.

Industry capacity utilization is running at roughly 94% currently, the highest since 2018 when it hit 97%.
A recent government report also showed overall refining capacity has fallen in the last two years. In fact, it's now back down to where it was in 2014, meaning that supply would remain strained even if refineries were running at 100%.
The bottom line: With little chance of bringing new sources of gasoline online anytime soon, the administration's best chance to lower prices will likely come from leaning on refiners to accept smaller profit margins.

a reply to: Somedumbum

Lol i've been saying that for some time. That it was the companies themselves driving up the price. It isn't the suppliers, its 100% company driven inflation.

originally posted by: Jason79
The gas companies don't set prices, it's investors trading on what they think future prices will be. Some of that is based on Bidens threats to destroy the fossil fuel industry.

Exactly like when they threaten the gun industry and they also experience record sales.

Can you help me understand this? It seems to me that you have it up side down. It seems to me that if future profits are seen as being high, then investors will invest. If those profits look to be low then investors will pull their investments and place the elsewhere. Isn't that how it all works?

And if the industry is afraid that Biden, who so far has accomplished almost nothing, is going to destroy the fossil fuel industry would those investors not pull their investments from fossil fuel? So in order to secure investors the fossil fuel industry would raise prices beyond the scope of regular profit making.

This issue of the op and another post suggest that the oil industry is far outpacing the scope of pricing during this inflationary period hence increasing unnecessarily the pace of inflation.

As well, I fail to understand how this is anything like threats to restrict the sales of guns. Yes, the government says it is going to and at times does pass legislation to do that and gun sales go through the roof, we've all seen this happening. But isn't that due to simple supply and demand?

Gun consumers fear their product will dry up off the shelves so they stockpile and empty the shelves. Along with this shortage in ''supply'' gun sellers increase the price of guns when they know that they will not have a ready and constant supply to sell.

But how is that the case with oil. Is oil in short supply? Some would have us believe that it is due to Russia and such. But true or not ''demand'' has not increased has it? If supply is hindered I can understand prices going up a bit but if demand remains stable is that enough for the massive gas price increase and humongous profits being made? Simple economics would suggest that if demand goes down, then prices would go down as well to entice people to take advantage of the lower prices and increase their demand. But as prices soar, aren't more and more people driving less hence decreasing the demand?

A simple answer to all of that works out to be price gouging as the OP suggests.

Now you may have a much better understanding of all of this than I do and I admit that this is very possible and if it is could you please teach me where I am wrong here?

a reply to: DontTreadOnMe

That is why they sell bread, milk, lotto, liquor, candy, magazines and damn near everything else under the sun.

And don't forget the hot dogs that from all appearances have been sitting out under the sun for hours and hours.

a reply to: putnam6

Thank you for bringing that insight into the conversation.

a reply to: TerryMcGuire

Green energy is nowhere ready to replace fossil fuels, one of Biden'scalls for higher fees for oil, gas leasing on federal land, stops short of ban.

When supply is reduced without reducing demand, prices go up.

www.npr.org...

. . . . and then we have Biden !! 🤓

a reply to: xuenchen

Here is the proof. Liquid propane is extracted while processing crude oil, similar to gasoline. LP 2 years ago was 21.99 for an exchange. Today is 23.99. Gasoline on the other hand was half of the price I pay today.

originally posted by: schuyler
The one entity that makes the most from a gallon of gas is the GOVERNMENT (state, local, federal.) And if you think that's bad try the EU and the UK where the government takes much more. The one thing that tells me is to NEVER trust ATS about anything factual.

There you go
Someone states something incorrect and almost instantly someone (in such a kind manner) corrects it
This is why I like forums like ats, you get more than just statements but interesting and often replies to form an opinion
Thats why I like and for the most part, trust sites like this
I get to read opinion and then form my own

Thanks for the correction of the op but, if we dont get told, how do we learn

originally posted by: Jason79
a reply to: TerryMcGuire

Green energy is nowhere ready to replace fossil fuels, one of Biden'scalls for higher fees for oil, gas leasing on federal land, stops short of ban.

When supply is reduced without reducing demand, prices go up.

www.npr.org...

Yes, but that’s not what happened, initially.

Petroleum production in the US plunged in 2020 AFTER producers realized that demand was decreasing due to the pandemic:

www.eia.gov...

It started recovering in late 2020 and has been growing slowly and steadily ever since. The time constant for ramping up new production seems to be about 5 or 6 months. You have to line up work crews, drill rigs, drilling mud, tankers, etc. In other words, there’s a time lag between when producers decide to ramp up production and when it actually comes on line.

Also, a number of refineries went out of business during the pandemic, starting in 2020 under Trump and continuing under Biden. Those were business decisions and not the responsibility of either President:

www.reuters.com...

Supply decreased basically as a response to the pandemic and has not recovered as fast as demand because of the time lags in the supply chain.

o for crying out loud here we go again with "its the company (oil this time) gouging the public"
then take the statistics/info, cherry pick and put in the spin cycle.
then pour out into main stream media and on sites like ATS and serve with a wedge of denial

but lets ignore the COLD HARD FACTS

A. biden and the liberal democrats OPENLY ADMITTED AND OFTEN that they were gonna "put fossil fuels out of business" (and other words to this effect)

B. kill a major pipline project on presidential fiat .

C. deny new oil leases and stop alot of current leases

D. production is DOWN and easily provable.

E. enact draconian environmental regulations and enforce them mercilessly . With some radical states like CA doing even more (really making natural gas in homes and grills illegal. Gas powered mowers and lawn tools illegal as examples).

then try to tell us NONE OF THAT is effecting the price of gas, oil , diesel but it is "only greedy oil companies"

i dont know whats worse

a. someone believes this
b. someone is thinking they can convince others this is fact
c. someone ACTUALLY BUYS this line of clearly bullsnip

scrounger