Most obviously, it has been established that there is continued demand at the “new” price, so why drop it?
Wellll…that’s not quite how demand curves work, yes fuel use is inelastic in the short term but there will be substitution if it looks likely to stay high. Which is happening noticeably here in the UK. The numbers show an uptick in EV purchasing and a reduction in consumption of fossil fuels.
Greedflation doesn’t care about demand curve.
Greedflation is just another way to state some very old economic concepts - inelastic demand and market power.
In other words if there is a supplier with little or no competition (monopsony) and a product that people will buy almost regardless of the price in the short term (inelastic demand) then yes the supplier can jack the price up while not losing sales…until people substitute alternatives.
This demand curve can be found in any high school economics text book from the middle of the 20th C it’s nothing new.
And if monopsonists bleed the customers too hard they will find substitutes, even if the product is as basic to life as water or food. People will move countries if they’re starving for example.
Smartarse quips aside you surely do understand basic economics right ?
No shit moron
The problem with the pseudo-intellectual economic theories is it falls flat on its face when faced with the real world, corruption, price fixing, imbalanced power dynamics, propaganda, etc etc.
Why would a company lower their prices when they’ve raised them and people keep buying?
We will never have the same gas prices again because a felon rapist pedophile needed a distraction from raping children.
This is America.
It’s almost as if oil companies are run by profiteering warlord psychopaths
of course not. this was the plan all along, so it would seem.
Good news. I just hope it breaks $100/gallon before 2027
3-4 years. That’s how long it will take to repair and rebuild the damaged infrastructure. Assuming trump or some other politician doesn’t fuck it all up again.
But by then inflation will have driven the cost up, so IMO the price isn’t going below $3/gal.
Well a bunch of capacity was blown up with a 5 year restoration timeline, so…
Oil billionaires are fine with earning more per gallon.
What’s that saying about oil prices? “Up like a rocket, down like a feather”
Not complaining tbh.
People with families and jobs they have to get to in order to support those families are.
The world is not ready to fully transition to fully electric vehicles. Until then, higher oil prices hurt normal people the most.
I don’t believe electric vehicles will solve this. Buses and public transit will.
Trouble in the world? Gas prices explode overnight.
Trouble “over”…well you see it’s complicated.
Weren’t they supposed to get worse? As they run out of reserves and the measures taken to reduce the impact from the Hormuz closure.
