“That is because the SELL the oil at market price but it costs them only a fraction of that to pump it out of the ground.”
Wish it was that easy to just set a price and have it stay there. But there are too many variables on pricing and sales before it hits the pump that reflect the ending outcome. Petroleum prices are determined by market forces of supply and demand, not individual companies, and the price of crude oil is the primary determinant of the price the public pays at the pump. Repeated in-depth investigations by the FTC have shown that changes in gasoline prices are based on market factors and not due to illegal behavior, and the American people are finger pointing rather than discovering the facts.
One of the biggest economic stories of 2022 has been high inflation, everything from fuel to food to entertainment has gotten more expensive over the past year. At the same time, wage growth hasn’t kept pace, leaving many feeling the pinch as they’re unable to buy the same things they could a year ago. And this applies to everyone to include Chevron employees. Plus many Americans have felt the pinch of higher inflation rates, and uncertainty about how the economy will respond to inflation has led to market volatility.
And with the Biden administration’s attack on the petroleum industry in the name (BS) of the climate change catch all limiting their natural growth they are forced to raise their prices to try to balance the books and stay with the inflation rates for their business just the same as everyone attached to fuel consumption is. And any other business as well. Look how many have closed up shop. And the gas industry supplies jobs to over 10 million people in the US.
So if you want to point the finger at someone, point it at the federal and state government policies that created the need for the price raising with all businesses while they will get more out of taxes than before. And that’s your money also as state taxes average 34.24 cents to gasoline and 35.89 cents to diesel for the gas people to pay. The federal government imposes an average gas tax of 18.3 cents per gallon on gasoline and 24.3 cents per gallon on diesel. So it means for every gallon of gas you buy at the pump the average tax you pick up is roughly 52+ cents a gallon beyond what the petroleum industry pays the government for the right to be a company.
I’m not picking on you. This entry is for everyone so they might consider where it has come from thus where it might go. And at the moment it is leaning toward overseas dependency more than ever. And wait till you see that bill.
wy69
Record profits seem to indicate that Chevron could lower prices and still stay in business