Current Events > Mathematical proof inflation isn't why gas prices are up but Greedy Evil Gouging

(+) Yeah! (+)

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It is known

Every big business wants to know how much they can get away with charging customers

great resignation 2 will be upon us soon as workers determine a minimum wage job isn't enough to pay for the gas to drive to that work every day

There is a war going on, so that's literally all the excuse they need to feel justified in making the price absurd.

Inflation is not the singular reason gas prices are where they are. Gas companies didnt just suddenly become extra greedy.

Yeah. Kinda like how Russia only made like 5% of our oil, but for some reason justifies a 100% mark up.

There's a cash pool going on at the top, things must be looking bad all around.

Things are pretty bad

Solid Snake07 posted...

Inflation is not the singular reason gas prices are where they are. Gas companies didnt just suddenly become extra greedy.

You are good at math yes?

So 30 cents of 3 dollar upcharge to you means we need to say inflation has a big hand in it???

?

Lmao

Take grade school math. Inflation is the AVERAGE increase of items. It's different on an item by item basis.

Beyond that though, companies have to charge what it takes to replace the inventory, not what it cost to make. If they sell gas for $3 per gallon, but it would cost them $4 to buy new gas for the reservoir, they don't buy the gas, then there's no gas, , everyone can't drive, the stations go out of business, etc.

lightwarrior78 posted...

Take grade school math. Inflation is the AVERAGE increase of items. It's different on an item by item basis.

Beyond that though, companies have to charge what it takes to replace the inventory, not what it cost to make. If they sell gas for $3 per gallon, but it would cost them $4 to buy new gas for the reservoir, they don't buy the gas, then there's no gas, , everyone can't drive, the stations go out of business, etc.

Oh no! You are so smart I am such a fool!!!

How could I go so wrong!!

This explains everything!!!!

POOR COMPANIES

THEY ARE TRYING THEIR VERY BEST! THEY DOB'TN'T WANT TO INCREASE COSTS!!!

@lightwarrior78

i mean, can't we just look at their incredibly high profits to see they're price gouging?

https://www.theguardian.com/business/2022/may/13/oil-gas-producers-first-quarter-2022-profits

WingsOfGood posted...

You are good at math yes?

So 30 cents of 3 dollar upcharge to you means we need to say inflation has a big hand in it???

?

Lmao

This isn't a simple math problem of general inflation rates. Gasoline consumption was extremely low for the past two years, which means the production of gas was slowed by a lot. Now demand has risen back up and production isn't meeting the demand. You can't just snap your fingers and increase production on that kind of scale, it takes time. Combine that with the situation with Russia and the general trend of currency devaluation.

Once again, I'm not sure why you have this notion that gasoline producers just suddenly became greedy. They've always been greedy and wanted to push their margins as high as possible while at least maintaining their general revenue.

Do you Think lumber producers just suddenly were overtaken by greed? Poultry and beef producers? The economy's in the fucking toilet with countless bottlenecking factors in production.

KnightofShikari posted...

i mean, can't we just look at their incredibly high profits to see they're price gouging?

https://www.theguardian.com/business/2022/may/13/oil-gas-producers-first-quarter-2022-profits

And yet we see people even ITT trying to say otherwise....

WingsOfGood posted...

And yet we see people even ITT trying to say otherwise....

Exxon grew revenue while earnings shrank from Q4 2021 to Q1 2022. So obviously price increases aren't just raking higher margins for them.

Solid Snake07 posted...

Exxon grew revenue while earnings shrank from Q4 2021 to Q1 2022. So obviously price increases aren't just raking higher margins for them.

You try so

Soooooo

Hard

And fail harder

Exxon's 2022 profits doubled in the first quarter to hit $5.48 billion.Apr 30, 2022

https://www.usatoday.com/story/money/2022/04/30/exxon-profits-2022 -double-first-quarter/9598018002/

What motivates you to jolt and quip at the rescue of these poor corparations daily I wonder....

@Solid_Snake07

WingsOfGood posted...

You try so

Soooooo

Hard

And fail harder

https://www.usatoday.com/story/money/2022/04/30/exxon-profits-2022 -double-first-quarter/9598018002/

What motivates you to jolt and quip at the rescue of these poor corparations daily I wonder....

yoy from probably the lowest demand in gasoline and highest rate of inflation in our lifetime? Yeah, no shit

You do understand inflation also mitigates and devalues current revenues and earnings in comparison to past revenues and earnings right? Earnings and revenues are worth less on an inherent dollar to dollar basis than they were last year.

Large differences in margin of profit between revenue and the cost of producing that revenue would be more damning evidence of price gouging. Youve yet to show anything to prove that is the case and recent public financials show that isnt the case.

It is a nice dream to think things will change. The peoples resistance to this will just be limiting their spending. When I say limiting their spending though what I mean is non-corporate transactions as the corporations are masters at manipulating the masses out of their money will regular people are not. The corporations will profit off a recession then apply further restrictions on their previous recession cuts to achieve even greater profits.

Great resignation, more like great firing and having one guy do the job of three people they just fired while he is sold the corporate propaganda.

Solid Snake07 posted...

yoy from probably the lowest demand in gasoline and highest rate of inflation in our lifetime? Yeah, no shit

You do understand inflation also mitigates and devalues current revenues and earnings in comparison to past revenues and earnings right? Earnings and revenues are worth less on an inherent dollar to dollar basis than they were last year.

Large differences in margin of profit between revenue and the cost of producing that revenue would be more damning evidence of price gouging. Youve yet to show anything to prove that is the case and recent public financials show that isnt the case.

Inflation would be like 30 cents not 5 dollars.

Now you are struggling to find a way yo justify this.

This after you tried to claim Exxon made no profit only revenue.

Which was disprove by them making 5 billion in profit not revenue.

WingsOfGood posted...

Inflation would be like 30 cents not 5 dollars.

Now you are struggling to find a way yo justify this.

This after you tried to claim Exxon made no profit only revenue.

Which was disprove by them making 5 billion in profit not revenue.

Can you not read or are you just intentionally being dense? I said their profit margins shrank from Q4 2021 to Q1 of 2022. Yknow, the time period most of the increase in the price of gasoline occurred.

Decreased margins doesnt mean they didnt turn a profit genius. It means the percentage difference between their total revenue and expenses shrank. If they were charging more while their expenses remained the same, aka price gouging, those margins would increase, not decrease.

Also oil companies run about 1% of all gas stations so the tweet itself is just full of diarrhea knowledge of the entire situation.

It's not price gouging, it's glorious capitalism in action

A random tweet with numbers is no more proof of anything than Cenks Nephew just randomly saying a thing.

All publicly traded companies have a fiduciary duty to their investors to make as much profit as is possible

If government created a price ceiling, the oil companies to compensate would export more oil out, assuming the market price (minus shipping costs) exceeded the price ceiling

If they exported more oil there could be gas shortages in USA

If there are gas shortages government would be forced to eventually lift the gas ceiling or use govt. spending to subsidize the oil companies selling at the price ceiling

Its a funny situation because even though RU isnt a big supplier to USA, its a big supplier to the world, causing the global market demand to be high meaning they're willing to spend more so USA has to spend more.

Good ole fashion supply-side shock!