CHAT Effects of Iran war … how fast gas prices going up in your area

The one thing that I should pretend not to understand is that oil prices are rising but shouldn't be because we are energy independent. We get no oil from the gulf states, so why should the spot price even apply to America?

Oh, I know; It's because our oil companies are greedy and think we will fall for it. So much for Patriotism of American Oil!
 
Pebbles said:
We are in west/central Arizona. Gas was $2.89 last Thursday and it is $2.94 today. All my vehicles are full right now but after a few trips to town this week in one of the vehicles I will top it off Wednesday. We shall see what it is by then.
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Prescott?
We are.
 
Up .30 since last night. I went and topped off my tank at 2.62 with a .03 discount so 2.59. Tonight the gas buddy app shows the same station at 2.89.
 
North central NY state-rural. I filled up Friday for $3.89, a bargain in NY state. I didn't pay any attention to gas prices today when I was out, as the average driver was blind AND crazy...

But GasBuddy shows prices between $3.89 and $3.99, so I don't see any profiteering going on. And honestly, that's exactly what any price increase at this point is!

Summerthyme
 
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One gas station had premium at 3.99$ ( Kroger) last week … today $4.59. Diesel shocked me. Going to watch it.

Glad I’m retired. Use to drive 2000 miles per month when working.
 
Great Northwet said:
The one thing that I should pretend not to understand is that oil prices are rising but shouldn't be because we are energy independent. We get no oil from the gulf states, so why should the spot price even apply to America?

Oh, I know; It's because our oil companies are greedy and think we will fall for it. So much for Patriotism of American Oil!
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Oil is a global commodity and like gold and silver, responds to global price changes.

My oil and gas industry experience is from the 70’s and 80’s but appears to still be the standard operating model for pricing at the pump.

Stations often employ a pricing strategy akin to the last-in, first-out (LIFO) model for inventory valuation and cost recovery, which contributes to rapid price increases at the pump when crude oil prices spike.

This approach assumes the most recently acquired (and typically more expensive) fuel is what’s being sold first, allowing retailers to adjust pump prices based on current replacement costs rather than the average or older inventory costs.

In practice, when wholesale crude or gasoline prices rise due to market disruptions (like geopolitical events or supply shortages), stations quickly hike retail prices to cover the higher cost of their next delivery, even if the fuel currently in their tanks was purchased cheaper.

This is a common industry tactic to maintain margins amid volatility, as uncertainty about future wholesale prices prompts immediate adjustments upward.

However, the reverse isn’t symmetric—prices tend to drop more slowly when crude falls, a phenomenon known as “rockets and feathers.”

Retailers may delay reductions to recoup any margins lost during the spike or until competition forces their hand, especially if demand has softened after the increase.

This behavior is well-documented in energy economics and persists today, influenced by factors like regional competition, taxes, refining costs, and distribution logistics.

For context, crude oil accounts for about 50-60% of the pump price on average, with the rest from refining, marketing, taxes, and profits.

LIFO is also widely used in the oil sector for tax and financial reporting purposes, providing benefits during inflationary periods by matching higher recent costs against revenues, but the pump pricing dynamic is more directly tied to market-driven replacement cost strategies.

So, like those American Silver Eagles you can buy today were actually minted from much less expensive silver months or years ago, all ASEs end up being priced very close to the current price of silver. Oil, gasoline and diesel prices do the same thing.
 
subnet said:
you wont be saving anything worth worrying over as you will be getting gas again next week most likely.
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That's my thought too, I rarely even look at the price per gallon. Driving around the area, to save a buck or two on a fill-up isn't worth it to me. Most people fill up maybe once a week, so those savings don't mean much, in the big picture of the monthly budget. Plus, I have ZERO control on the price, so I don't worry about what I can't control.
 
This past Friday, here in SE Oklahoma and thru to Paris, Texas, regular was $2.30's to $2.40's. A few stations wer even higher from 30 to 50 cents, but do not use them.
 
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