Why are fuel prices so high?

[Monaco38]

January 2020 paid $2.47 per gallon in the Northwest. Today Diesel topped $6.199 at our local Pilot/Flying J. May be limiting our travel plans this summer.

[PJStough]

Originally Posted by Monaco38

January 2020 paid $2.47 per gallon in the Northwest. Today Diesel topped $6.199 at our local Pilot/Flying J. Won't get political here...but this is not on Putin.

Look at the 5 year chart and see that drilling for oil in the USA all but stopped by August of 2020. You cant produce oil in the future if you almost stop drilling for it!
https://ycharts.com/indicators/us_oil_rotary_rigs

[1doodadd]

Does the word CONTROL mean anything

[ArtJoyce]

In June 2020 I paid 77.9 cents for diesel, of witch 57 cents was taxes. So I paid 22 cents for gas. This was the same time that US oil producer were paying 40 a barrel (-40 a barrel) to get rid of oil to free up space in their holding tank. After june all new drilling stopped.

If they did not free up the space they would be pouring oil on the ground. 2020 huge oil industry lost is what started the gross reduction in drilling.

In June 2020 the experts were forecasting the US industry would stop drilling because of the losses.

[mickeybitsko]

High gas prices are good for the environment.

[Bobby F]

All caused by Napoleon. Or Franco. Or Churchill. One of them.


(That's quite a challenging OP question to ask on a no-politics board.)

[twogypsies]

Originally Posted by ArtJoyce

In June 2020 I paid 77.9 cents for diesel, of witch 57 cents was taxes. So I paid 22 cents for gas. This was the same time that US oil producer were paying 40 a barrel (-40 a barrel) to get rid of oil to free up space in their holding tank. After june all new drilling stopped.

If they did not free up the space they would be pouring oil on the ground. 2020 huge oil industry lost is what started the gross reduction in drilling.

In June 2020 the experts were forecasting the US industry would stop drilling because of the losses.

Where did you find diesel for 77.9?
https://www.eia.gov/dnav/pet/hist/Le...TE_NUS_DPG&f=M

[CamperLifer]

Truth -
Powers that be want all electric vehicles in a certain timeframe.
Gotta get fuel prices up so people will consider buying electric vehicles.

[Monaco38]

Originally Posted by CamperLifer

Truth -
Powers that be want all electric vehicles in a certain timeframe.
Gotta get fuel prices up so people will consider buying electric vehicles.

All the country's farming, manufacturing, production, and supply chain depends on diesel, not windmills or fairy dust. There is currently no available alternative for diesel to produce and deliver goods and services to the consumer. A shortage in diesel production impacts every sector of the economy including RVing. Hope to still be able to continue RVing in the future.

[CamperLifer]

Originally Posted by Monaco38

All the country's farming, manufacturing, production, and supply chain depends on diesel, not windmills or fairy dust. There is currently no available alternative for diesel to produce and deliver goods and services to the consumer. A shortage in diesel production impacts every sector of the economy including RVing. Hope to still be able to continue RVing in the future.

"vehicles" do not include diesel powered trucks used to deliver goods all over the country. Those won't be electric until the technology of batteries and electric motors gets A LOT better. Some common sense should be used here.

[jeanluc001]

Originally Posted by mickeybitsko

High gas prices are good for the environment.

High gas prices are bad for the economy

[kewag]

Fuel prices will stay high as long as there is demand. I see as much or more travel then when fuel prices were much lower. Not only fuel but electricity, propane, natural gas, water.

[Fogbelly]

Originally Posted by ArtJoyce

Prices are high because the Fed changed a law about 15 - 20 years ago. It use to be US produced oil could not be exported. The US law changed and we are a top three largest exporter of oil in the world. Some years we have been number 1.

Much of the oil exported by Russia is finished (refined) goods. So it's not just the crude but its also the refinery capacity is lost. Normally there is lets say a 15% increase of price from crude spot per barrel to price per barrel refined. But right now in Europe they are paying over 50% uplift from the world crude oil prices for refined finished goods.

So the US refineries can make a bunch of money selling finished goods overseas, which then make the domestic prices compete for the finished goods.

So if the law was in place they could not export the refined oil and prices would be much lower.

Evidently you're unaware of the Jones Act.

[tetranz]

Maybe it's because capitalism is an unstable broken system and we need to get over the taboo of treating it as if it's the only possible system for a modern world.