Bacon's Rebellion

Democracy Thrives in Sunlight

What About That Price of Gas?!!

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by

Dick Hall-Sizemore
in , ,

Gas station on Arthur Ashe Boulevard, Richmond, 7/7/2022

by Dick Hall-Sizemore

There was much wailing — on this blog, in Virginia, and in the nation — as gas prices approached and then exceeded $5 per gallon recently. Governor Youngkin and President Biden used those price levels to call for suspension of gas taxes.

And what was the reaction of the general populace to those high prices, except complaining? Did folks decide to drive less? Nope. AAA projected that road travel this summer would approach the levels of 2019, when gas was much cheaper. Are they driving slower? After all, gas mileage decreases rapidly at speeds over 50 mph. Anyone who tries to travel on I-95 between Richmond and Northern Virginia driving about 65 mph, as I did a couple of weeks ago, knows the answer to that question.

But wait! As shown in the photo above, gas can be readily found in the Richmond area for $4.39, or less, per gallon. That’s 60 cents per gallon less than it was the last time I filled the tank on my car. That includes the inflation-adjusted increase in the gas tax that Steve Haner recently warned us about. That price decrease and price level are better than they would have been under Governor Youngkin’s proposal at the time he put it forward.

Funny, but I haven’t seen anything on these pages about this decrease. Of course, it is more fun to complain about price increases than celebrate their decreases.

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48 responses to “What About That Price of Gas?!!”

  1. James McCarthy Avatar
    James McCarthy

    Learned a new term today: Amphigory
    Nonsense verse that appears at first hearing to have meaning, but which reveals itself to be meaningless under scrutiny. Amphigory may be a corollary to “full of sound and fury signifying nothing.” Either may be appropriate for some of the orations on this blog. Gas prices in my hood in NOVA dropped 30 cents per gallon yesterday to about $4.69.

    1. David Wojick Avatar
      David Wojick

      Apparently you shouod be celebrating. No? Imagine that.

      1. David Wojick Avatar
        David Wojick

        We could also celebrate that it is pushing $6 on the West Coast and in Illinois. Still not? That others are in even more pain does not make me happy.

    2. James C. Sherlock Avatar
      James C. Sherlock

      Your “hood” in NOVA. Street wise. Irish Jimmy from the block.

      First to the blackboard as usual.

      You are what we used to call in basketball a basket hangar – a guy who hung back at the offensive end of the court to get better chances to score rather than playing defense with the rest of us.

      Coaches saw to it that basket hangers got to hang out on the bench.

      1. James McCarthy Avatar
        James McCarthy

        Let’s see: on an earlier post you called out my spelling of Sun with a capita “s” as a though some type of literary failing. When I played grade and high school basketball, hangars were places to store airplanes. Did you enjoy the bench view? Did you even play on a team? Hang in there, Holmes, you leave so many targets with your amphigory.

  2. f/k/a_tmtfairfax Avatar
    f/k/a_tmtfairfax

    It all depends on where a person’s starting point for measuring gasoline price pain is. If one goes back to 2019-2020, this price drop means nothing. If, on the other hand, one looks at prices in late July 2022, this price drop is a good sign.

    Still a lot of people in the Triangle seem to be hurting economically.

    1. James McCarthy Avatar
      James McCarthy

      I don’t know what the starting point for measuring gasoline price pain means. For some, the price can never be low enough; for profiteers, it can never be high enough. Expect increased amphigory as EVs become more prevalent.

      1. James C. Sherlock Avatar
        James C. Sherlock

        Four kinds of people in McCarthyworld:

        -,“Some” for whom “prices can never be low enough”. Scum. Those are apparently those who cannot afford EVs if I read you right,

        – ‘Profiteers”. Another microaggression. More scum, apparently those who power the economy.

        – EV owners.

        – McCarthy. Who may or may not be an EV owner.

  3. Matt Adams Avatar
    Matt Adams

    “Funny, but I haven’t seen anything on these pages about this decrease. Of course, it is more fun to complain about price increases than celebrate their decreases.”

    So a price drop from a 10+ year high is proof that everything is hunkeydoory?

    This drop is not a result of any Government interaction, the price decreased because the oil the was refined into gasoline was purchased as a lower rate than previously.

    Crude is futures not presents and it’s not based upon S/D. So if the refiner pays a high price, the price at the pump goes up.

    Furthermore, you should revisit comments where you chide others on “attacking” people and your refusal to admit errors and or.make corrections.

    Your conceited tendencies are rather old.

  4. James A. Bacon Avatar
    James A. Bacon

    Today’s Wall Street Journal takes note of the declining cost of gasoline. The WSJ reporter cites the AAA as saying that declining demand was a major contributor to the price decline.

    “The drop is primarily because of diminished demand at the pump, according to an AAA report released this week. An increased supply of gas and lower oil prices have also contributed to the recent price drop, AAA said. … Gasoline sales leading up to Independence Day trailed previous years. Same-store gasoline demand by volume fell about 7% for the week ended July 2, compared with the same period last year, according to OPIS data. Demand that week was down about 13% compared with the same period in 2019.”

    The WSJ quoted AAA as saying that the dip in price could be short-lived.

    1. Dick Hall-Sizemore Avatar
      Dick Hall-Sizemore

      As noted, the price of gas is tied to market forces.

      1. Donald Smith Avatar
        Donald Smith

        Dick, it’s obvious that the Democrats, writ large, have been waging a behind-the-scenes campaign to cripple our fossil fuels industry, with little-to-no regard on how that impacts average people.

        Now, I’m sure you feel you’re doing the right thing. But, you should at least admit that your side has implemented policies that are causing a lot of suffering. Or, at the very least, don’t be flip about it. (“the price of gas is tied to market forces.”)

        1. Dick Hall-Sizemore Avatar
          Dick Hall-Sizemore

          Yes, I understand that there would be a disincentive to make long-term investments in something like building new refineries or even upgrading existing ones when the long term outlook is for a movement away from fossil fuels.

          At the same time, there are other factors at work, such as the sudden resurgence in demand following the return to some normalcy after the COVID pandemic and the Russian invasion of Ukraine that resulted in sanctions on Russia. Many conservatives seem to ignore those other factors and concentrate their blame on Biden and his policy of phasing out fossil fuels in favor of renewable energy.

          1. Donald Smith Avatar
            Donald Smith

            I agree with everything you said in the second paragraph, especially the impact of increased demand for gas.

            But, the Democrats are fostering policies that are forcing us off of fossil fuels prematurely, without there being proven, economical alternatives on-hand for us to implement. Solar and wind aren’t reliable sources of energy, and we don’t have nearly enough electric cars at affordable prices to go around or charging stations to recharge them. We face a near-term future of rolling blackouts in many states.

            You have to wonder if the people who are pushing these policies really thought them through.

          2. James C. Sherlock Avatar
            James C. Sherlock

            Dick, you just wrote of Biden’s policy on phasing out fossil fuels. You are right. And that is the problem.

            Civilizations need three things to survive – water, food and energy.

            How about a policy of investing in cost-effective replacements for fossil fuels and, when they are ready, the market will adopt them? Market participants will do it for capitalist reasons. Capitalism works.

            By far the biggest investors in green energy are the fossil fuel companies themselves. Because they want to be the first to develop them. For commercial advantage.

            But the left, having destroyed the nuclear power industry, does not wish to wait for new technology. Joe Manchin has so far stopped them.

            If they win the power to force “the transition” before the technology is ready, it will destroy this fossil fueled economy of ours.

            That is what the people pulling Biden’s strings want, a premature and forced transition. Watch California. It will likely happen there first.

            Good news, however. Gavin Newsome will run for President on the promise to do for America what he has done for California. You will vote for him.

    2. James McCarthy Avatar
      James McCarthy

      Surely, AAA must be believed and credited. Pump purchases are a factor in gas prices along with a number of others. WSJ will offer other articles citing additional causes for price declines without reference to AAA.

      1. James C. Sherlock Avatar
        James C. Sherlock

        “Pump purchases are a factor in gas prices along with a number of others”.

        Perhaps the most succinct, yet useless, description of energy markets I have ever read. Can I quote you?

  5. Kathleen Smith Avatar
    Kathleen Smith

    Why are people so opposed to taking the bus. In Richmond, you ride free. I can go from Petersburg to Capital Square in 28 minutes. Six runs morning and six runs afternoon. Several buses to more locations like The far west end. Need for gas would decline, you get more exercise, and pay less for recreational gas on weekends. I used to pay $25 per week. So even when the covid funding stops, it is still a deal.

    1. vicnicholls Avatar
      vicnicholls

      Because in Hampton Roads a 20 minute or to commute goes to 2 hours (or so) one way. That’s an extra 4 hours a day to get to work. Not possible. One break down and its all over. Just trying to get groceries would be an issue also, not all of them go to a stop nearby. With seniors, handicapped, those with babies, trying to negotiate buses is simply unworkable. I know at least one bus stop where the closest one can be a mile or more easily away. Not walkable.

  6. VaPragamtist Avatar
    VaPragamtist

    How is $4.39 per gallon something to celebrate?

  7. joelrubin Avatar
    joelrubin

    Someone sent me a shot of gas price at $4.15 in Richmond

  8. walter smith Avatar
    walter smith

    OK…$4.99 vs $4.39 – a 15% drop
    $4.99 vs $2.19 -123% increase
    $4.39 vs 2.19 – only 100% increase… all good!

    1. Eric the half a troll Avatar
      Eric the half a troll

      You want gas prices from the height of Covid? If you do, you can expect the same US economy as the heart of Trump’s recession.

      1. walter smith Avatar
        walter smith

        You mean the Deep State’s Covid porn? And you still had to cheat to “win”!
        How’s that safe and effective working for ya?
        You need to stop picking on me.
        I am currently identifying as black, and your criticism is racist.
        On Monday, I will go to Student Health at UVA and tell them I identify as a woman and a student and demand that I be prescribed birth control cuz I fear some frat guy is gonna give me roofies and get me pregnant. You’re all a joke. An evil joke. But a joke.

        1. James McCarthy Avatar
          James McCarthy

          Be sure to mention you are Black to ensure DEI principles are proffered. Otherwise, your Saturday appears to be enjoyable.

          1. walter smith Avatar
            walter smith

            I was just gonna go with being a white woman…didn’t think the race card would be necessary, but good suggestion!

          2. James McCarthy Avatar
            James McCarthy

            Y’all played it, so it’s yours.

        2. Eric the half a troll Avatar
          Eric the half a troll

          Wow, Walt, you really are reaching today… racism, sexism, transphobia, and belittling sexual assault all in one pitiful swing at being clever and relevant…

          1. James C. Sherlock Avatar
            James C. Sherlock

            A murderers row of microaggressions. Do you need some private time?

          2. Eric the half a troll Avatar
            Eric the half a troll

            I like to think of them as aggressive-aggressions, thank you very much…

  9. Nancy Naive Avatar
    Nancy Naive

    “Did folks decide to drive less? Nope. AAA projected that road travel this summer would approach the levels of 2019, when gas was much cheaper.”

    Well, I suppose they could fly. After all, things there are moving smoothly.

    Personally, I’d take a train, but who wants to spend 10 hours sitting on their grandmother’s couch? A bus offers the same accommodations only with chiggers and urine stains.

  10. William O'Keefe Avatar
    William O’Keefe

    Dick, you should revise your comment on demand unless you believe that it is totally inelastic. EIA data show a year of year decline for June and AAA says that in the past week gasoline demand has dropped 7%.
    As for price, it is driven by global oil prices and refinery constraints. Right now, refineries are running flat out.

    1. Dick Hall-Sizemore Avatar
      Dick Hall-Sizemore

      This was meant to be a “moment in time” to illustrate. Obviously, based on other comments on the blog today, it is an elastic figure.

  11. James Wyatt Whitehead Avatar
    James Wyatt Whitehead

    Refineries are finally catching up. Looking forward to a glut of gasoline. $4.02 a gallon at Roy’s in Front Royal this morning. I had to top off. Good news!
    https://uploads.disquscdn.com/images/52085ba3b3a87f427fb6c5e3460b8ebdb31fdfc885c56434faa4cb29d04fafc3.jpg

    1. Stephen Haner Avatar
      Stephen Haner

      I could handle $6 a gallon if need be. But your average working stiff is still getting creamed at $4, and the inflationary impact of the peak price remains in the economic pipeline and will take weeks to move through, like a pig swallowed by a snake. But peak summer driving is probably past and demand destruction has done its job. Time now to start watching the fuels needed to get the Northern Hemisphere through the winter, especially in Europe. Not dying of cold is a bit more inelastic than driving.

      Nancy found a chart I had gone looking for. Had seen that before on EIA during a previous price spike.

      1. James Wyatt Whitehead Avatar
        James Wyatt Whitehead

        I used to show that chart from Nancy to my history classes when attempting to explain the energy crisis from the 70s. Hard to understand until it comes out of your personal wallet.

        1. Nancy Naive Avatar
          Nancy Naive

          This is the personal wallet…
          https://www.pewresearch.org/wp-content/uploads/2018/08/FT_18.07.26_hourlyWage_feature.png

          And you can see that even with gains in MPG it still hurts.

      2. LarrytheG Avatar
        LarrytheG

        Much of Europe and Asia , in the winter, heat ONLY the rooms that are occupied. In fact, much of the US used to do that also.

  12. Donald Smith Avatar
    Donald Smith

    Democrats do seem to feel awfully entitled. Specifically, they seem to feel entitled to tinker with the American economy, regardless of the consequences.

  13. David Wojick Avatar
    David Wojick

    On a more serious note, the inelasticity of demand for fuel is why carbon taxes would have to be punishingly high to work.

  14. Nancy Naive Avatar
    Nancy Naive

    https://inflationdata.com/articles/wp-content/uploads/2022/06/Inflation-Adj-Gasoline-Prices-June-2022a.png

    This is part of the equation, the other is the increase in MPG. The cost of a 1978 car trip from Richmond to New Hampshire, and back, was WAY more than it is today.

    If you simply buy five 1.75l of Grey Goose in New Hampshire, the savings over VaABC will pay for the gas. Of course, you’ll want to put ’em in the trunk under a blanket.

    1. LarrytheG Avatar
      LarrytheG

      Cool Chart!

      1. Nancy Naive Avatar
        Nancy Naive

        For the sake of argument, suppose you are the sole maker of a product, say widgets, that you sell for $1 each, and your customers use at a rate of 1000/week.

        One day, someone shows your customers that if they clean the widget half way through its use, they can reuse it, and they only need 800 widgets per week.

        What do you do? Obviously, you charge $1.25 for your widget. Customer has no option. He’ll pay it.

  15. vicnicholls Avatar
    vicnicholls

    There hasn’t been that kind of decrease here in Hampton Roads. While you may not believe there are changes, I’m seeing it here on the ground.

    1. James C. Sherlock Avatar
      James C. Sherlock

      Near the oceanfront, gas prices are $.20 a gallon more expensive than 3 miles inland. Variables are supply, demand and costs of doing business.

      1. vicnicholls Avatar
        vicnicholls

        Over $5?

        1. James C. Sherlock Avatar
          James C. Sherlock

          No. Last i looked $4.65 near the oceanfront and $4.45 three miles away. That info is about a week old.

  16. James C. Sherlock Avatar
    James C. Sherlock

    Price of gas going down, yet Putin’s war continues. How is that possible, Dick?

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