A Run on Gas

[daninthelionsden]

Are any of you experiencing limits on gas purchases where you live? We went to top off our tanks solely to stay ahead of coming price hikes and ran into panic buying of gas and $50 limits per customer here in Houston.

 

[hawkman]

Limits of gas purchases in Houston Texas ? Kind a like a limit on cheese purchases in Wisconsin .
Things normal here in north Alabama .

 

[for_his_glory]

No limits here in South Carolina, but the last time I filled up from a half tank cost me 53.00. Gas here is 4:60 a gallon most places.

 

[Luminous_Rose]

I haven't seen a limit on how much gas one can purchase, but I've heard about people being limited on for example, how many gas cans they can fill.

There have been many times here nearly our entire town was almost...almost out of gas completely. We will still have many gas stations run dry, forcing people to pay the higher prices of going elsewhere. It's really a pain.

Right now, we're dead broke and can't even afford gas because our only gas card got skimmed at a gas station this weekend. So, the card had to be locked to prevent further fraud, and it's 7-14 business days until we can get a new one. Guess we're basically stuck walking if we want to get anywhere right now...

 

[Hidden In Him]

No limits in Louisiana yet either, but the price still keeps climbing. $4.53 a gallon now, up 20 cents from just a few days ago.

 

[Luminous_Rose]

I haven't seen a limit on how much gas one can purchase, but I've heard about people being limited on for example, how many gas cans they can fill.

There have been many times here nearly our entire town was almost...almost out of gas completely. We will still have many gas stations run dry, forcing people to pay the higher prices of going elsewhere. It's really a pain.

Right now, we're dead broke and can't even afford gas because our only gas card got skimmed at a gas station this weekend. So, the card had to be locked to prevent further fraud, and it's 7-14 business days until we can get a new one. Guess we're basically stuck walking if we want to get anywhere right now...

Good news, not only can we not afford gas, but now we have a flat tire! This just keeps getting better and better ?

 

[jasonc]

An opinion on this

 

[WIP]

What is driving the price up? When I try to answer that question, in most cases, I am able to counter the answer as well. For example....

• Crude oil prices. In 2008 when average retail for gasoline in the US was about $4.00 per gallon, the price per barrel of crude had gone up to $140.00. Currently the price per barrel is at about $120.00 so this doesn't account for the current retail price for gasoline.
• Crude oil supply. If there was a supply issue, it would follow suit that we'd be seeing major shortages at the retail pumps but I have heard very little about any shortages of gasoline. Incidentally, this also seems to defeat the idea that additional drilling would have much affect.
• Supply issues due to lack of truckers. Again, if there was a supply issue getting refined fuels delivered to the retail outlets, there'd be shortages all over the place.
• Oil company gouging and cooperative price setting. If this was going on, then how does one explain when fuel prices drop as they did from 2014-2021?

About the only explanation I have not been able to counter so far is inflation. The Trillions of dollars of stimulus monies that our government flooded into our economy during the past couple years didn't just appear out of nowhere. It's a fact that when an economy is flooded with more printed money the value of money goes down and that drives inflation up because it takes more of it to buy things. Simple supply and demand. The more money that's available, the greater the supply of money and the lower its value becomes.

Using the American Institute of Economic Research Cost of Living Calculator, $4.00 per gallon in 2008 is equivalent to $5.33 in 2022 dollars. Using the Consumer Price Index inflation calculator the result was very close to the same at $5.43 per gallon. This supports the probability that inflation is a key driver of the prices.

 

[hawkman]

What is driving the price up? When I try to answer that question, in most cases, I am able to counter the answer as well. For example....

• Crude oil prices. In 2008 when average retail for gasoline in the US was about $4.00 per gallon, the price per barrel of crude had gone up to $140.00. Currently the price per barrel is at about $120.00 so this doesn't account for the current retail price for gasoline.
• Crude oil supply. If there was a supply issue, it would follow suit that we'd be seeing major shortages at the retail pumps but I have heard very little about any shortages of gasoline. Incidentally, this also seems to defeat the idea that additional drilling would have much affect.
• Supply issues due to lack of truckers. Again, if there was a supply issue getting refined fuels delivered to the retail outlets, there'd be shortages all over the place.
• Oil company gouging and cooperative price setting. If this was going on, then how does one explain when fuel prices drop as they did from 2014-2021?

About the only explanation I have not been able to counter so far is inflation. The Trillions of dollars of stimulus monies that our government flooded into our economy during the past couple years didn't just appear out of nowhere. It's a fact that when an economy is flooded with more printed money the value of money goes down and that drives inflation up because it takes more of it to buy things. Simple supply and demand. The more money that's available, the greater the supply of money and the lower its value becomes.

Using the American Institute of Economic Research Cost of Living Calculator, $4.00 per gallon in 2008 is equivalent to $5.33 in 2022 dollars. Using the Consumer Price Index inflation calculator the result was very close to the same at $5.43 per gallon. This supports the probability that inflation is a key driver of the prices.

Let me add to what you say . Purchases of gas are not affected by the infamous " shrinkflation" we are seeing everywhere , 12oz of a product for the price we paid for the same 16oz product not long ago . Toilet paper rolls not as wide , less product for same amount or even more $ !

 

[T. E. Smith]

Gas in Louisville where I am is $4.90 - $5.

It is going up so high because of economic sanctions against Russia.

 

[daninthelionsden]

Good news, not only can we not afford gas, but now we have a flat tire! This just keeps getting better and better ?

Ugh. I remember the days when I had a basket in my garage full of tire repair supplies. I used to make a 60+ mile a day transit to/from work. I could count on picking up nails/screws etc which would frequently puncture my tires. I must've plugged dozens of holes over the years. Of course, if I ran over something than caused a large hole or tore the side of my tire, then I had to put out for a new tire. Couldn't repair those. Tires are so very expensive nowadays.

 

[jasonc]

Inflation is the best explanation but it doesn't help our leaders won't allow new drilling.

While I'm not a fan of Russia or China .until we cut ties with their products fully a sanction is akin to pointing a gun at ourselves and saying see do that again and I will shoot

 

[daninthelionsden]

One of the Youtube channels I watch said there is a refining capacity reduction due to maintenance turnarounds and some workplace unplanned accidents that, in part, are contributing to this perfect storm concerning supply/demand. They said we have an unusual number of down refineries.

 

[WIP]

Gas in Louisville where I am is $4.90 - $5.

It is going up so high because of economic sanctions against Russia.

How is this driving the prices up? By what means?

 

[WIP]

Inflation is the best explanation but it doesn't help our leaders won't allow new drilling.

Drilling would only be beneficial if there were actually shortages or concerns of shortages. Why would oil companies strive to increase production if there's no change in demand? That would be cutting their own throat because creating an excess of a commodity will drive prices down and potentially profits along with them unless the profit margins could increase as production increases through efficiency. But, adding more drilling expenses, maybe not.

 

[WIP]

One of the Youtube channels I watch said there is a refining capacity reduction due to maintenance turnarounds and some workplace unplanned accidents that, in part, are contributing to this perfect storm concerning supply/demand. They said we have an unusual number of down refineries.

But wouldn't we be seeing shortages at the pump? Normally, our refining capacity is pretty close to full as it is.

 

[Corn Pop]

People love freebies and then have a cry when it comes back to bite.

 

[daninthelionsden]

But wouldn't we be seeing shortages at the pump? Normally, our refining capacity is pretty close to full as it is.

At the station we went to, there was a limit. I don't know if it was just for that station for that day or what. That's why the thread. I wanted to know how local vs how widespread. Maybe more refineries are coming back up?

 

[Luminous_Rose]

Ugh. I remember the days when I had a basket in my garage full of tire repair supplies. I used to make a 60+ mile a day transit to/from work. I could count on picking up nails/screws etc which would frequently puncture my tires. I must've plugged dozens of holes over the years. Of course, if I ran over something than caused a large hole or tore the side of my tire, then I had to put out for a new tire. Couldn't repair those. Tires are so very expensive nowadays.

Thankfully we were able to go get it patched where we got our tire, free of charge. That was such a blessing today. Not sure where we picked the nail up, but it's been a pain. When they were going to pull our car into the bay, though, the battery died. Now we have another problem we can't really afford. Pretty sure someone tampers with our car...this kind of stuff has happened to us for years and it's never one little thing...We've pulled it in behind a locked gate. Hopefully if that's the case, it'll stop anyone from messing with it -_-

It's true, tires aren't cheap, either. I hate having to pay for tired! Especially for a whole new set. It's easier to buy the tires online and then go to a locally owned tire shop and pay for installation, which can be like $5-$20/tire. That way often saves at least $100 if not more.

 

[WIP]

At the station we went to, there was a limit. I don't know if it was just for that station for that day or what. That's why the thread. I wanted to know how local vs how widespread. Maybe more refineries are coming back up?

I haven't heard of any shortages around here in central MN.