Who do you think sets and controls gasoline prices at the pump?

[msc545]

The President

Oil Companies

[WindAtMyBack]

It sure as hell ain't the president. It's not really the oil companies either.

It's the cost of crude, which is determined by worldwide supply and demand.
The cost of refining, additives and delivery.
A considerable amount of tax, which is the only thing the government controls.

Ultimately, the owner or manager of the station sets the final price. Some people might not be aware that gas can actually sell at a loss. The gas gets you in the store to buy fountain drinks, hot dogs, beer, cigarettes and lottery tickets. Gas is often a loss leader. Many stations make more on one fountain drink than a tank of gas. They don't care about the gas, which is a low margin product at best. They want you in the store buying the high margin products.

[Chazmatazz269]

Wholly false.

[msc545]

@Chazmatazz269 Totally false. The AI picked this one.

[WindAtMyBack]

@Chazmatazz269

Have either of you actually tried to learn about this? Obviously not. If you had actually spent a reasonable amount of time digging into it, you'd know that what I said is true.

Do some research.

[Chazmatazz269]

Oil companies, obviously, but how and why they set them the way they do is in part due to how our government reserves oil for “crises”. But mostly greed.
The conservatives struggle with this simple fact because they want to blame the prices they pay for fuel on anyone except their capitalist overlords who they believe can do no wrong. “It’s just good business!” when the fat cats are ripping off our government and its citizens. But if you feed starving children it’s “evil” socialism! Ell oh ell! And they don’t dare select their next vehicle for fuel economy. Cuz “patriots” only drive gas-guzzling pollution hogs. Ell oh ell!

[douride2]

The oil companies set the prices. In Canada not sure about other countries the biggest profit is taken by the government in taxes. In Ontario the price of gas is about $1.63 a liter. For you folks in the US it's about 3.8 liters to a US gallon. Of that the governments federal & provincial take about 32%. That works out to about 53 cents on a liter of gas. So in reality who is raking in the profits?

[OlderAndWiser]

The price of crude oil and refined gas are affected by many factors, including certain actions which a president can take - or not.

[GoodGuyBreakingBad]

Oil Companies

[RebelinSteel]

Oil companies, how can it be the President?

[goaded]

Record breaking profit making oil companies, and it's generating a large proportion of inflation.

[handsomelad70]

Yep. These modern sheiks are rolling in oil booty.(As opposed to ghetto booty!!!)

[slatyb]

Neither. The pump price is largely a function of the price of oil, which varies with supply and demand. Supply is partially controlled by OPEC but there are other producers.

[msc545]

So oil companies don't make a profit since they are not producers?

[slatyb]

I didn't say that, but they are legally forbidden from colluding on pricing. If the price of crude drops but the pump price of gasoline does not, there will be inquiries. The price of crude oil is only a fraction of the cost of gasoline. There's also the refining cost, transport (pipeline to local fuel depot), then by truck to point of sale, the cost of sales (cost to build and operate the gas station), plus federal and state taxes. Of course oil company profits go up when the price of oil goes up -- they are long on an increasingly valuable commodity. For example, suppose they purchased oil or oil futures at $70/bbl and it is now trading at $100/bbl. They can now sell the oil they bought (or contracted for) at $70/bbl for $100/bbl. If the price of oil goes down, they have to sell at a loss.

[msc545]

Do you seriously think any of that is actually enforced in the US?

[slatyb]

We do see pump prices rise and fall with the spot price of oil.

[msc545]

There is a lot more to it than that.

[slatyb]

Like what, exactly? The price of crude oil is only a part of the price at the pump, and the other costs are variable and can increase while the price of crude stays the same -- basically the reason that pump prices vary across the United States. Some of the variation is due to state gasoline taxes, but there is also variation by city. Gasoline is more expensive in locations where land is more expensive, and where wages are higher.

[msc545]

you are not factoring in the money from corruption and its influence.

[goaded]

"The Federal Trade Commission on Thursday accused the former head of a Texas oil company of seeking to collude with his OPEC competitors to sync U. S. oil production and inflate energy prices. "
www.politico.com/.../ftc-oil-exec-opec-prices-00155671

[lightbulb27]

Consumers. If we stopped buying it and tidinbf our bikes it change price.


Prez can influence price

[msc545]

How does the President influence prices?

[slatyb]

The move to electric cars will decrease demand and lead to a decrease in the price of crude oil.

[lightbulb27]

Presidents Working Group on Capital Markets ( market manipulation established well before his tenure and used by others I hear), control of strategic petroleum reserves flows, microphone influence over other nations policies, approval/disapproval of permits such as the one I posted about approval of Trinidad/Tobago to drill gas... not positive that is only natural gas... I haven't read details.
there may be things I don't know...
en.wikipedia.org/.../Working_Group_on_Financial_Markets
CAn this group be used to manipulate prices... such as was demonstrated by how some manipulated gold market prices? Also, Obama/Biden appear to have manipulated price of UUU prior to it being driven out of investors hands into the hands of Russia at lower prices.

I leave it to the reader to determine if ANY president manipulates. My vote is yes... of course they do... they all do.

[handsomelad70]

In Canada, I also think it's the oil companies. Oil prices are sensitive to world events such as the Israel-Hamas War.

[KrakenAttackin]

Market forces. Big oil earns between 1 cent to 3 cents per gallon of refined product. About 4 cents go to transportation. The majority of refined product prices are dictated by base crude prices and taxes.

[OfMiceandMen]

Oil companies mostly, however, we are taxed on every fuel-up by the province. They know a cash-cow when they see it.

[exitseven]

In a free enterprise system the seller sets the price. The market determines if he can get that price.

[msc545]

The US does not have a free enterprise system. We have monopolies.

[exitseven]

There is competition in the energy business. Collusion between petroleum companies and price fixing is illegal.

[msc545]

Yes of course it's illegal. And yes of course it happens on probably a daily basis. You are kidding yourself. If you actually believe that these companies don't collude with each other. They most certainly do. Otherwise the fact that all of their gasoline costs essentially the same must be just some weird coincidence, right?

[exitseven]

@msc545 It is called an inelestic price. Commodities often are sold at the same price no matter who is the seller.

[msc545]

Yes, one of three oil companies that all collude with each other and fix prices. It does not matter what you call the price. It is inelastic for consumers.

[msc545]

It is also quite illegal and that certainly doesn't matter in this country. Corporations don't follow the law. Surely you know that by now.

[Anonymous]

Oil companies buy if the president makes it harder for them to do business and the price rises then he has to shoulder some of the blame

[msc545]

How does the President make it harder fo them to "do business" ?

[Opinion Owner]

Closing pipelines and refusing drilling

[msc545]

Not clear t o me how that affects prices at the pumps.

[RedInnocent69]

The station owners. Gas prices at the pump are bullshit.

[msc545]

station owners don't make money on gas in the US.

[DrPepper12]

Consumers and producers.