High Fuel Costs!

I hear from a lot of folks who claim various people, events, or groups are responsible for the high gas prices. Well, I have been around for a few decades, have driven thousands upon thousands of miles and buying gasoline from every single company putting the gas pumps out there. Those gas purchases include in the Middle East, Europe, and the Far East nations in addition to the majority of our United States of America. So, this essay/commentary is based on true experiences of my more than 8 decades of life.

Who bears actual responsibility?

I can tell you for a fact, that the president of the United States (every one of them since the invention of the internal combustion engine) IS NOT responsible for the high prices of gasoline in this country. The market has a small impact on price. The congress is partially responsible, mainly through their corrupt inactions that enable/assist the actual responsible parties. But even Congress is not totally at fault, they are simply the enablers of those who are truly the evildoers behind the gas price gouging. One needs to look no further than the corporate offices of companies like Exxon, Shell, Conoco, BP, Valero, etc. These people have been manipulating the price of gasoline and diesel at the pump for decades and they are not going to stop until or unless Congress passes some sort of law regulating price gouging. Which, so far, the Republicans in Congress have blocked every legislative bill that has been put forth in this regard. Not manipulating, because law reflecting some activity like that has been around for years and no one enforces it at all, period. More corrupt practices from our political class and the corporate class of super wealthy corporations that focuses on the rape and pillage of the working people in this nation will continue unabated and it will continue to do so as long as we have corrupted political hacks and immoral corporate executives.

Other income through theft

And consider that these selfsame oil and gas barons working with their wholly owned politicians have been stealing taxpayer dollars through congressionally allowed, supposed Research and Development GRANTS and tax abatements to the tune of billions of tax dollars each year. Then they increase the level of theft by not paying the royalties to both the government and the native American tribes for the oil and gas they drill and extract from lands belonging to the public and to the Native American tribes for drilling wells on the Reservation lands. Over the decades, these companies have been guilty of avoiding these royalty payments and as a result their profits and stockholder payments have been obscenely large, much more so than if they had used integrity in their business dealings. However, as one who has actually worked in that industry and for those executives, as an outside technology consultant, I can say pretty darn firmly, that integrity, honor, and honest dealings are not part of their make-up.

Gasoline versus Diesel

This manipulation of fuel prices spans decades and across various types of fuel. For instance, they charge an exorbitant price for a gallon of diesel fuel when the cost for refining a gallon of diesel fuel is far less than gasoline. This quote from a question to the various resources shows this difference.

“Diesel fuel is heavier and less volatile than gasoline, which makes it simpler to refine from crude oil. As a result, diesel tends to be cheaper than gasoline in most countries around the world ” But not in the USA.

“Both gasoline and diesel fuel are produced from crude oil and therefore the cost of crude oil is the main factor influencing gasoline and diesel prices. However, fuel prices also reflect refining costs, taxes, and distribution and marketing costs. Additionally, retail prices are affected by market demand. These factors lead to a price spread between gasoline and diesel. Refining costs: During the process of refining, crude oil is separated into different components and these components are converted through further treatments into gasoline, diesel fuel, and other petroleum products. Diesel fuel is heavier and less volatile than gasoline, which makes it simpler to refine from crude oil. As a result, diesel tends to be cheaper than gasoline in most countries around the world. However, the introduction of Ultra-Low Sulfur Diesel (ULSD) between 2006 and 2010 increased diesel production costs since ULSD requires more refining. But not sufficient to justify the actual gap in prices between diesel and gasoline.” 

These comments were extracted from publications of various organizations who follow, monitor and report on the oil and gas industry. The facts are that in this country, diesel is well above the gasoline prices at the pump. These same price structures are prevalent at marina fuel pumps where the fuel pumped is for motors in boats of various sizes. Whether gasoline or diesel, marine fuel is a major rip-off, because it is the same price or higher as for cars and trucks on the highways, and I know that my old motor yacht never touched a highway. The idiocy is that the same highway taxes are applied to marine fuels as for fuels in automobiles driving on those highways. One thing I noted with almost every single report of this type is that the authors are hesitant to point to the executive manipulation of the cost/price relationship. I can understand their reluctance, since much of their work is highly dependent on these same executives allowing them access to many items of their research. However, the facts remain that in the oil and gas industry, the senior executive level are very powerful, they have exorbitant amounts of money for lobbyists, and their demands as a result, are treated as coming from the absolute mandate for operations.

Price Gouging, Jacking up the base prices

I have suffered through at least three instances in my driving life of the oil and gas companies manipulating the price of gas to move their desired base price point to a higher level. They dramatically increase the fuel prices blaming some “catastrophic happening” usually quite higher than their desired point price. Then they magically allow the price to float down slowly until their price point is reached. By then the driving public has been convinced the higher prices were necessary, but lordy, lordy, how nice and great these gas companies are for bringing the costs back down. A prime example is in the early 70’s when the fuel companies convinced us that the Saudi Arabians had put a boycott on selling oil to us. What they didn’t admit to is their negotiation with this oil nation to perform this fallacy and then they would reap the increased price for their barrel of crude oil when the “crisis” is resolved! I recall waiting in long lines to purchase gasoline for my car when the last number of my license plate was either odd or even. I got the honor of paying three times the price for a gallon of gasoline as I had before this “crisis”. Then after a few weeks, the cost at the pump started to slowly drop. When it reached the price point of 1.25, a miracle of miracles happened and the fuel crisis was over, no more odd and even buy days, and plenty of gasoline was available. Strange thing, some similar crises occurred a few years later when the price of gasoline soared to 5 dollars a gallon! That is when I sold my GM cars and bought two Toyota hybrid vehicles to save on fuel. Yep, even though I knew it was a made-up crisis, I still was trying to break free of total subjugation to the Oil Barons and their need to increase their salaries, their bonuses, and some increase for the stock prices. BTW, I went back to my GM vehicles after a couple of years. Well whoops, here we go again, in 2020 when they manipulated the price at the pump again!!! This time it was the Covid Pandemic AND the invasion of the Ukraine nation by the Russian hordes. Well, well, fuel prices soared again to the 5 dollar and even beyond in some areas. Price gouging anyone? Of course, and it was rampant. Then the master manipulators in Houston and elsewhere (oil and gas corporation HQs.), played a yoyo game, lowering the price, then jacking it back up, but not quite as far as before. Now lower, but rise again, not quite as high, lower again, raise again. Starting to get the picture now?

Driving Public needs to act

Hells Bells folks, time for the driving public to all grow a pair, hammer our congress critters over their delicate spot (their congressional seat, their access to bribe money, and their POWER). They need to understand that the driving public has gained some knowledge of the cons that the oil and gas companies are pulling, that they know about the price gouging, and that the members of congress are doing not a single damn thing to put a stop to the rape and pillage of our nation’s citizens. Will we do it? See the first instance of this price manipulation and price gouging that I remember was in the 70’s for gosh sake, that was well over 50 years ago. And this time they are truly kicking our slats out, this fuel “crisis” is affecting most aspects of our daily lives. The supply chain depends on transportation of goods, fuel prices dictate the adverse pricing of goods and service. When the trucker fills up his transport vehicle paying an ungodly sum for that fuel fill up (150 gallons usually) you can bet that we will pay the price at the cash register when we buy things. So, I truly wonder if we will ever put fire to the feet of the politicians and the oil barons. Make congress stop their taxpayer money handing over in grants to these very wealthy companies. Make Congress pass enforceable laws/regulations that will stop or at least hinder the oil barons playing games with our lives and enriching themselves with billions of dollars. Or we can just sit back, let the propagandists make us believe that the high fuel prices are the presidential administration’s fault or because of the war and or the foreign oil countries, or a plethora of other external things. Sure, and Santa Clause will ride again on Christmas.