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62 replies

quokk.au

They're selling the strategic petroleum reserve.

109
NekoKonekoreply
lemmy.world

This is a great guess, because it's one of the few ways that explains the lower prices but also allows Trump to both grift public resources to his friends while getting unearned positive MAGA publicity.

68
MrVilliamreply
sh.itjust.works

And it's in direct response to that Pennsylvania woman on the news at a gas station saying that she voted for him 3 times and "apparently I'm an idiot" over the gas prices. He's trying to keep PA from going blue.

31
lemmus.org

Bold of you to assume they give a shit what voters think or do at the ballot stations any more.

9

They don't give a shit about voters, they do care about optics though which is exactly what this is.

4
melsaskcareply
lemmy.ca

I think you're wrong. But you are bold as well for making a statement like that.

3

How? He just fired the last 2 officials on the federal election committee (there's zero now). He already said DHS will be at the polls and they're extorting voting records from the states.

2
fizzlereply
quokk.au

Is that how the reserve works though?

Here in Australia the reserve isn't a bunch of big tanks owned by the government. Its a legislative mechanism requiring fuel retailers to hold a reserve.

It wouldn't make sense for the government to own or manage a reserve because it needs to be cycled constantly (petrol deteriorates quickly, diesel too but less so), and they'd need to replicate skills from the fuel industry.

That being the case I don't think there's a big tank of fuel owned by the government.

Edit: ok it seems I'm absolutely wrong about this.

The federally-owned oil stocks are stored in huge underground salt caverns at four sites along the coastline of the Gulf of America. The sheer size of the SPR (authorized storage capacity of 714 million barrels) makes it a significant deterrent to oil import cutoffs and a key tool in foreign policy.

https://www.energy.gov/hgeo/opr/strategic-petroleum-reserve

Sorry Americans.

As an aside, I don't understand how this works because it's certainly true that fuel doesn't last forever. Maybe you can store raw unprocessed oil indefinitely but not fuel.

17

The SPR holds mainly crude oil, so you can't just open a gas station and start selling it. It has to be sent to a refinery first, and once that happens the product that comes out is fungible.

In short it would be logistically simpler to just buy gasoline on the market and subsidize it. The subsidy is only 20-30 cents / gal as well.

6

Found here

SPR oil is sold competitively when the President finds, pursuant to the conditions set forth in the Energy Policy and Conservation Act (EPCA), that a sale is required. Historically, the President has authorized emergency releases from the SPR on four occasions.

In short, yes I believe this to be the case

8

Disclaimer I'm not American, and I don't really have much actual knowledge on this subject.

...but I THINK the US presidents can actually do this. I'm not sure what the legal mechanism is, but I do remember some chatter some15 years ago about Obama releasing the reserves. This makes me believe that the strategic reserve builds up during normalcy, and can be drained through executive action.

7

You're correct. That's why the US reserve storage holds oil, not fuel.

2

It's hilarious that the Republicans are turning into a literal communist dictatorship.

Trump wants absolute power and is now subsidizing fuel using tax payer dollars to reduce prices for supporters of the party.

How is that not the fear mongered version of communism the Republicans have been foaming at the mouth about?

21
lemmy.world

How long until people start complaining about check engine lights and wrecked fuel systems due to the 50% ethanol or 30% methanol mix of Freedom Fuel? Lol

52
lemmy.world

I wouldn't put it past them but water sinks to the bottom of the tank and doesn't mix with gas. When they talk about gas stations "watering down" gas they almost always mean ethanol or methanol. Unless it's E10 because ethanol is hygroscopic it will hold aboit 1% water if fully blended. That's why E10 is shit.

29

Didn't he already mandate that we can have increased ethanol this summer due to his stupid fucking war?

10
Ariselasreply
piefed.ca

maybe they are harvesting algae to make biofuel

5
lemmy.zip

I AM THE QUIETEST PERSON ON EARTH, by far the quietest, most humble, some would even say humblest person in the world, one day a big man, strong man, tears down his eyes, came begging me to build a statue of me of gold, saying mister President, you must allow it, but because I am so humble, I said, no, you must not worship golden idols, just like it says in the BIBLE, my favourite book, great book, love all the testaments, you know that the JEWS share part of the BIBLE WITH US CHRISTIANS, really cool, truly unique, no one knows that, Bibi knows that though, he’s very smart HIGH IQ just like me, I took THREE TESTS and PASSED THEM ALL, doctors said nothing like this has been seen before I AM IN SUCH GREAT WEALTH, just like the GREAT MITCH MCCONNELL, poor Mitch, old Mitch, right now lying in bed trying to fight the WOKE LIBERAL MIND VIRUS, I wish him well, all the DUMOCRATS (dumb+ Democrats) DIDN’T, those DOGS which THEY ARE EATING are LIARS AND BAD PEOPLE.

THANK YOU FOR YOUR ATTENTION TO THIS MATTER

24

I dunno, sounds like a bunch of lies tbh. Like, he isn't quiet, but how much of what he's saying is coherent, let alone how much of what he's been told is true?

5
lemmy.world

No idea how long it will last, but as soon as the mid terms are done, they'll definitely be gone.

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fizzlereply
quokk.au

My theory is, some domestic fuel producer has done the math and decided that a dem majority in the mid terms will cost them more than providing this discount on fuel for the next 4 months.

Hopefully, they pay for the discount and face a dem majority after the mid terms.

17

They have been assured by the Epstein class that the fix is in for the mid terms.

12

It's so infuriating that no one is stopping this shithead while he just does one illegal thing after another.

The conservatives and their party are terrible and nutless wonders. Imagine being such a cuckservative that you sit in Congress as an R and do absolutely nothing about any of this corruption.

6

I’m paying $4/gal. It’s not cheap. It’s cheaper than other places but last year it was like 2.39/gal

10
fizzlereply
quokk.au

No we don't. We call it authoritarian corruption and price fixing.

15

... but some of us are more correct than others.

2
lemmy.world

The whole thing is very weird, and yet I can't believe this administration could open gas stations without fucking it up. Maybe they actually managed to get some competent petroleum industry buddies to do it.

16

They just changed the branding on existing gas stations.

10

I doubt theae cheap bastards would even spend the money on ethanol...

And ethanol is shit for cars... Fine for racing but race engines get rebuilt on a regular basis..

1

It is either taxpayers money, or the owner desperately wants something from Trump. What, we'll never know. Maybe pardoning some family member, maybe get a wife deported by ICE, maybe get his teenage daughter back from Trump...

4

State run petrol boys. We made it! Up there with the likes of Aramco, Rozneft and Gazprom

4

3.59 today while I was on foot. The 3.47 is not some subsidized price. The president endorsed a random-ass marketing campaign, presumably for a kickback

4

I beg to differ, has is 3.69 and diesel is 4.59 where I live (Arizona). Sorry that's not cheap

2

It's so fucking mind blowing you all are trapped in this corner discussion some real issues others should know about but you all decided that wasn't really important. Nobody knows this shit and if they did they'd be fucking pissed.

I just can't believe Steve Miller told you all to fuck off and you did 😆

1
aussie.zone

Simply look at the wholesale price of gas + taxes. There's massive profit margins everywhere you look.

When this new gas station opened 3.47 was significantly profitable. you've been getting ripped off and now call out a business with realistic pricing a scam or fraud?

-3
Hegarreply
fedia.io

More than a half-dozen fuel industry analysts and officials, including some who work with retailers in the two states, told POLITICO they had no idea who was behind the effort and were baffled at how the retailer could survive offering discounts of up to 50 cents per gallon, well below market rate.

Experts in the field all seem to think it's fairly obviously not profitable.

Gas stations changed their branding overnight, the business only incorporated June 23rd, and no one can say who's behind it or who is covering these losses.

It's obviously some shady BS from the trump regime, trying to minimize the impact of their fuckups in iran.

10
aussie.zone

"Experts" that obviously profit from high prices

There's no losses when they are selling at profit. Look at the wholesale cost of gas with takes. When the brand launched it was $3

0
greybeardreply
feddit.online

Running a gas station costs more than the raw cost of wholesale gasoline. You have to pay for delivery, employees, rent, maintenance, and taxes, at the very least.

4

The number includes tax and delivery. More is sold than just gas, and 47c per gallon is considerable profit margin for a gas station to operate

0