Originally posted by squirrel
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Vehicles get almost a 3rd on average better fuel mileage than the 80's and fuel was 99 cents. then.
Why do large chains of retail able to sell product cheaper ?, because of volume of sales
WHY was the chevy small block hop up parts cheaper ? volume of sales from volume of units in service.
As fuel use goes lower and lower, the sheer volume of sales to divide the refinery cost across drops. Forcing the price per gallon to go UP not down.
Fuel prices have never been about supple and demand. CRUDE market price, yes but not the end products made from it.
In 2008-2010, people in the USof A traveled less than they did in 2010/11/12/13/14/15/16/17/18. because of lack of money and faith in the economy, yet fuel prices did not drop to 1.29 a gallon from the stuff piling up from people not traveling and a huge amount out of work.
Odd how that works, when the talking heads repeat over and over again ,it's supple and demand.
If in2020. for example ,50% of the vehicles on the road daily became electric. and new gas models all went to turbo 4's including mall crawler trucks (anything smaller than.an 1 ton) and the national fleet mpg of the gas models went up 10mpg.
Fuel prices at the pump will not have dropped , they'll go up WAY up.
The refinery cost per gallon goes up from lack of spreading it across million more gallons sold. and fuel taxes would go up to keep the till full, The retail outlets, you know gas stations, would need to make more on each gallon as the volume of sales drop, if they plan on staying in business.
This is simple business 101.
In no way would higher café regs. or even a fleet of electric and everyone moving to fuel sipping cars and trucks. fuel be cheaper.
Race fuel is silly money a gallon. why. lack of volume of sales, it doesn't cost 5 -7times more to produce it. but the volume of sales isn't there.
And before some cluck claims but but e85 is cheap. take the government gimmies away from corn fuel growing and production and it won't be so cheap. take ethanol out of pump fuel , causing a huge drop of volume produced to be able to divide the production cost across and see it go up to race gas cost.
Volume of sales, lowers the retail price of everything. from retailers being able to buy it for less and then sell it for less than the small mom and pop place can buy it for. to the chain burger place that can cook you a burger while paying employees and overhead for less than you can make yourself one at home. or a egg muffin/etc.
Any time volume of sales drop, prices go up.
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