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Remember when Chuck Schumer said gas prices would "never go down"? The national average gas price hit $5.01 under Joe Biden. Today, in 23 states, it's below $2.75 per gallon.

193,432 просмотров • 8 месяцев назад •via X (Twitter)

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⛽ HERE'S THE PART NOBODY EXPLAINS TO YOU ABOUT GAS PRICES! Trump is right: Oil companies are playing both ends against the middle! A gas station owner does not set his own fuel cost. He buys his gasoline wholesale from a refiner or distributor, often locked into a supply contract with a major oil company brand. That wholesale price is set upstream. By the refiners. By the majors. Not by the guy running the register. So why is wholesale still high when crude is sitting at $68 a barrel. The industry's answer is inventory lag. Refiners are still selling fuel made from oil they bought weeks ago at higher prices. Chevron's own CFO has said publicly that lower crude prices take time to work through the supply chain before drivers see real savings. Fine. But here is the question that breaks that excuse wide open. If stations are selling old inventory bought at yesterday's price, why does the pump price jump the second crude spikes, before that expensive new oil has even been delivered. You cannot have it both ways. Slow to fall because of old cheap inventory, but instant to rise before the new expensive inventory even arrives. The real answer is something called replacement cost pricing. Retailers price gas based on what it will cost to refill the tank tomorrow, not what they paid for the gas sitting in the ground today. That is why prices jump like lightning when crude rises. But somehow that same forward looking logic disappears the moment crude falls. Suddenly everybody remembers the inventory they are still working through. That is not a supply chain mystery. That is a choice. Economists call the pattern rockets and feathers. Prices shoot up like rockets the second crude spikes. They drift down like feathers when crude falls. The same companies pricing forward on the way up are mysteriously pricing backward on the way down. Trump named the companies directly. ExxonMobil. Chevron. Shell. BP. He said it plainly in the Oval Office, that they are the ones not passing along the savings they should already be passing along. California gets singled out too. Gas there averages over five dollars a gallon, with state taxes piling on top of everything else. This is not Trump bullying small business. This is Trump asking the companies holding the lever why the logic only runs in one direction. Lower oil should mean lower gas, with the same speed it took to raise it.

Bill Mitchell

307,422 просмотров • 1 месяц назад

WHY ARE WE STILL PAYING ALMOST FOUR DOLLARS A GALLON WHEN OIL IS NEARLY $70 A BARREL?! Oil is trading in the seventies right now. Go back and check the history books. The last time crude sat in that range for any real stretch, gas was closer to two dollars and sixty cents a gallon. Today the national average is sitting near four dollars. Something does not add up, and Americans know it. There is an old saying in this business. Prices rise like a rocket and fall like a feather. Economists even have a name for it. The rocket and feather effect. When oil spikes, the pump reacts overnight. When oil drops, that same speed mysteriously disappears. The industry has a story ready every time. They say they are still selling expensive oil bought weeks ago, so prices cannot fall yet. Fine. But watch what happens the moment tensions with Iran flare up. Oil ticks up four or five dollars a barrel and somehow pump prices jump forty or fifty cents overnight, on oil the stations already had sitting in the ground bought at the old cheaper price. You cannot have it both ways. Slow to fall because of old inventory, instant to rise regardless of it. That is not a supply chain. That is a shakedown. Trump has pushed harder than any president in a generation to open up drilling, cut red tape and increase the actual supply of American energy. That is supposed to be the whole point. More supply, lower prices, real relief for working families filling up their trucks. Families are doing the math at the pump every single week. They are not confused. They can see a rocket going up and a feather coming down, and they are done pretending it is a coincidence.

Bill Mitchell

14,474 просмотров • 1 месяц назад