why are we paying $2.22 for Fuel

[Indiandog]

@Indiandog will know for sure rather than the usual know-alls making up a 10 page answer

every one made record profits during/post covid (despite the Ukraine War issue).

The reason why it happened is simple.

The Pandemic was supposed to create a GFC type financial crises as the economical activity came to an abrupt halt, but that never really happened, infact the people enjoyed the luxury to sit at home and do nothing and get paid on top.

This crisis was avoided as the countries around the world went into overdrive in printing money as they had to give free money to their people to stay at home. There was no economical activity happening to generate this money rather it was simple money printing and the consumers eventually paid the price and still paying for it. People ended up with more money in their pockets and their buying power increased and that resulted in inflation going up and subsequently price of goods and services , real estate and everything under the sun went up. It was just a typical demand and supply phenomenon.

And if you are talking about the price of fuel (before the Ukraine war) you can add multiple other factors that just added to the cost for the oil companies such as port congestions, cost of pallets, cost of storage containers, cost of warehousing, shortage of staff and specifically the delivery drivers to cart fuel from one place to another and so many other supply issues I remember we were dealing with at that time which was just adding up to the price increases that I was passing on to my clients.

If you look at just one drama of port congestion that we were having you would realize how expensive it became for oil companies to do business. The warehouses around Australia had their maximum occupancy that we ever had in the history. There was no place to store our products in. Companies were leaving their goods at the ports in the containers as a result which was making the port congestion issues even worse. The rents were going through the roof, Toll and Linfox were struggling to recruit drivers, the turn over was high as we did not have any immigration to fill the gap.

Now I must say oil companies did make more profit and they did charge more than they should because they didnt know when these issues will go away and pandemic will be over. It will take me whole day to explain to you how the prices are set, the prices set are always forward looking and because of the unpredictability of the market price were set a bit higher and the oil companies did put some fat in the prices because of unprecedented and chaotic global situation. However the same could be applied to any goods or service that you have seen gone up by more than double since covid.

In summary we are all paying the price of the free money that we received to sit at home during Covid. It is not just the oil companies that made record profits, it was Coca Cola, Pepsi, Smith Chips, construction materials companies, car companies, electronic companies, etc etc.

 

[Indiandog]

Yep. And they're making ridiculous profits right now. The price of Vegemite has gone up about 30%. How does the war in Ukraine increase the price of a product made in Australia?

I hope you said this as a joke.

 

[CrittaMagic69]

every one made record profits during/post covid (despite the Ukraine War issue).

The reason why it happened is simple.

The Pandemic was supposed to create a GFC type financial crises as the economical activity came to an abrupt halt, but that never really happened, infact the people enjoyed the luxury to sit at home and do nothing and get paid on top.

This crisis was avoided as the countries around the world went into overdrive in printing money as they had to give free money to their people to stay at home. There was no economical activity happening to generate this money rather it was simple money printing and the consumers eventually paid the price and still paying for it. People ended up with more money in their pockets and their buying power increased and that resulted in inflation going up and subsequently price of goods and services , real estate and everything under the sun went up. It was just a typical demand and supply phenomenon.

And if you are talking about the price of fuel (before the Ukraine war) you can add multiple other factors that just added to the cost for the oil companies such as port congestions, cost of pallets, cost of storage containers, cost of warehousing, shortage of staff and specifically the delivery drivers to cart fuel from one place to another and so many other supply issues I remember we were dealing with at that time which was just adding up to the price increases that I was passing on to my clients.

If you look at just one drama of port congestion that we were having you would realize how expensive it became for oil companies to do business. The warehouses around Australia had their maximum occupancy that we ever had in the history. There was no place to store our products in. Companies were leaving their goods at the ports in the containers as a result which was making the port congestion issues even worse. The rents were going through the roof, Toll and Linfox were struggling to recruit drivers, the turn over was high as we did not have any immigration to fill the gap.

Now I must say oil companies did make more profit and they did charge more than they should because they didnt know when these issues will go away and pandemic will be over. It will take me whole day to explain to you how the prices are set, the prices set are always forward looking and because of the unpredictability of the market price were set a bit higher and the oil companies did put some fat in the prices because of unprecedented and chaotic global situation. However the same could be applied to any goods or service that you have seen gone up by more than double since covid.

In summary we are all paying the price of the free money that we received to sit at home during Covid. It is not just the oil companies that made record profits, it was Coca Cola, Pepsi, Smith Chips, construction materials companies, car companies, electronic companies, etc etc.

Lucky I put all my money into meme coins.

 

[XPICATE]

every one made record profits during/post covid (despite the Ukraine War issue).

The reason why it happened is simple.

The Pandemic was supposed to create a GFC type financial crises as the economical activity came to an abrupt halt, but that never really happened, infact the people enjoyed the luxury to sit at home and do nothing and get paid on top.

This crisis was avoided as the countries around the world went into overdrive in printing money as they had to give free money to their people to stay at home. There was no economical activity happening to generate this money rather it was simple money printing and the consumers eventually paid the price and still paying for it. People ended up with more money in their pockets and their buying power increased and that resulted in inflation going up and subsequently price of goods and services , real estate and everything under the sun went up. It was just a typical demand and supply phenomenon.

And if you are talking about the price of fuel (before the Ukraine war) you can add multiple other factors that just added to the cost for the oil companies such as port congestions, cost of pallets, cost of storage containers, cost of warehousing, shortage of staff and specifically the delivery drivers to cart fuel from one place to another and so many other supply issues I remember we were dealing with at that time which was just adding up to the price increases that I was passing on to my clients.

If you look at just one drama of port congestion that we were having you would realize how expensive it became for oil companies to do business. The warehouses around Australia had their maximum occupancy that we ever had in the history. There was no place to store our products in. Companies were leaving their goods at the ports in the containers as a result which was making the port congestion issues even worse. The rents were going through the roof, Toll and Linfox were struggling to recruit drivers, the turn over was high as we did not have any immigration to fill the gap.

Now I must say oil companies did make more profit and they did charge more than they should because they didnt know when these issues will go away and pandemic will be over. It will take me whole day to explain to you how the prices are set, the prices set are always forward looking and because of the unpredictability of the market price were set a bit higher and the oil companies did put some fat in the prices because of unprecedented and chaotic global situation. However the same could be applied to any goods or service that you have seen gone up by more than double since covid.

In summary we are all paying the price of the free money that we received to sit at home during Covid. It is not just the oil companies that made record profits, it was Coca Cola, Pepsi, Smith Chips, construction materials companies, car companies, electronic companies, etc etc.

I thought it was Russia causing petrol price hikes.. Maybe it’s the covid, that anyone with a brain could see that you can’t print/spend money like that without paying for it at some point.

 

[Hacky McAxe]

I hope you said this as a joke.

I never joke about Vegemite...

Wait, no, the other way around. I always joke about Vegemite.

 

[Hacky McAxe]

Good old Woolies profits though...

Woolworths posts $1.62bn profit with dramatic lift in margins despite cost-of-living crisis

Results, a day after Coles posted $1.1bn profit, show supermarket has used pandemic and inflation to increase profit from sales

www.theguardian.com

Woolworths posts $1.62bn profit with dramatic lift in margins despite cost-of-living crisis
Results, a day after Coles posted $1.1bn profit, show supermarket has used pandemic and inflation to increase profit from sales

 

[Indiandog]

I thought it was Russia causing petrol price hikes.. Maybe it’s the covid, that anyone with a brain could see that you can’t print/spend money like that without paying for it at some point.

Amongst lots of other issues you have , comprehension is on top of the list .

No wonder you are so fried .

 

[Indiandog]

Good old Woolies profits though...

Woolworths posts $1.62bn profit with dramatic lift in margins despite cost-of-living crisis

Results, a day after Coles posted $1.1bn profit, show supermarket has used pandemic and inflation to increase profit from sales

www.theguardian.com

Woolworths posts $1.62bn profit with dramatic lift in margins despite cost-of-living crisis
Results, a day after Coles posted $1.1bn profit, show supermarket has used pandemic and inflation to increase profit from sales

Tell me one major company that has not made a killing during pandemic other than the airline industry, which is now catching up anyway.

again it goes back to how much money was printed during pandemic to feed the entire world at home.

Just look at the USA how much cash was generated out of thin air post covid ..... its simply mind blowing if you compare it with the prior years

The Most Important Money Statistic…. Ever.

So, you don’t have to be an economist to interpret this. I’ll explain it in layman’s terms without any fancy jargon.

medium.datadriveninvestor.com

Also do consider that money has actually lost its value big time post covid due to the same reasons i mentioned above.

$1.62 bn profit is record profit yes, but you also need to keep in mind the purchasing power of dollar has eroded away exponentially post covid so $1.62 bn profit is not huge considering every company in every industry has made record profits.

 

[XPICATE]

Amongst lots of other issues you have , comprehension is on top of the list .

No wonder you are so fried .

You couldn’t be more rhetorical if you tried.

 

[Indiandog]

You couldn’t be more rhetorical if you tried.

psychological projection is another condition that you have.

 

[XPICATE]

psychological projection is another condition that you have.

First you said Russia is to blame for petrol prices..then you said it was covid. Then you questioned someone’s comprehension skills..whilst also not providing information that you said you would.

 

[Indiandog]

First you said Russia is to blame for petrol prices..then you said it was covid. Then you questioned someone’s comprehension skills..whilst also not providing information that you said you would.

Either you are an idiot of the highest order or pretending to be one. I will go with the former.

I said Russia is to blame for the petrol price being $2.22!! Go back and read the post you numpty

Then the conversation moved on from there and then we discussed why the petrol prices went up during covid.

Because you have comprehension issues you couldn't separate the two different events and the answers to two different questions.

#facepalm

 

[XPICATE]

Either you are an idiot of the highest order or pretending to be one. I will go with the former.

I said Russia is to blame for the petrol price being $2.22!! Go back and read the post you numpty

Then the conversation moved on from there and then we discussed why the petrol prices went up during covid.

Because you have comprehension issues you couldn't separate the two different events and the answers to two different questions.

#facepalm

Absolutely bro.