Fuel prices around the world.

[Diggin It]

Plenty of fuel now priced $4 and higher...

Only a few weeks back it was under $3...

That is a 33% increase since December... sobering.

Prices have been up or down 50 - 75 cents so often over the last 20 years, I haven't really paid attention.

 

[TMGT]

Fuel cost in '07-08 pretty much put me out of business, I had a small towing and hauling company and when diesel hit $5gal and stayed there for a bit it was brutal. Non of the contracts I had would give enough of a fuel surcharge to compensate. About 50% plus of my gross was going to fuel.

Also didn't help that I was competing with of bunch of people that were illegal, just bought a pickup and trailer and started operating without all the expenses that come with trucking legit.

 

[MossRoad]

One thing that kinda gets me is if I mention something, someone says where's the source? If I post a link to a source, they say anyone can post links.

Google why fuel prices are currently rising. The first 10 links will show the same thing I posted.

 

[sixdogs]

Here's a chart of inflation adjusted gas prices going back to 1918. It shows the price of gas today is actually cheaper than in 1918 after inflation is factored out. It's also below the average price of all the years since then. Plus, since back in 1918 we spent a lot more of our incomes on other things like food and gas money was harder to come by.

Some people think prices rise or fall because something happened to cause it. In looking at the chart, however, we can see the price of gas was already too cheap by historical numbers and was pumped for a spike.

Should the price of gas rise to the upper bands, one could then make a prediction that the price was likely to fall and be right more often than not.

 

[Hay Dude]

Fuel cost in '07-08 pretty much put me out of business, I had a small towing and hauling company and when diesel hit $5gal and stayed there for a bit it was brutal. Non of the contracts I had would give enough of a fuel surcharge to compensate. About 50% plus of my gross was going to fuel.

Also didn't help that I was competing with of bunch of people that were illegal, just bought a pickup and trailer and started operating without all the expenses that come with trucking legit.

Man that sucks. I am in a similar situation. I think a lot of folks don’t understand what a 30-100% increase in fuel prices does to their fellow Americans who operate machinery to put food on the table.
I just sold a piece of machinery back in October and the shipper who picked it up for the buyer was very shady. No DOT numbers and was to be paid in cash. His truck looked unsafe.
How am I supposed to compete with that when someone wants me to move a machine for them as a legal business?

 

[Hay Dude]

Here's a chart of inflation adjusted gas prices going back to 1918. It shows the price of gas today is actually cheaper than in 1918 after inflation is factored out. It's also below the average price of all the years since then. So it's OK. Even better since back in 1918 we spent a lot more of our incomes on other things like food and gas money was harder to come by.

Some people think prices rise or fall because something happened to cause it. In looking at the chart, however, we can see the price of gas was already too cheap by historical numbers and was pumped for a spike.

Should the price of gas rise to the upper bands, one could then make a prediction that the price was likely to fall and be right more often than not.

Post all your charts you want, a sudden 30% or more jump in fuel cannot be absorbed as easily as you think.
Most of it comes in the form of making small business owners poorer.
It doesn’t keep up with inflation??? So what? It’s still a rising cost!
If we all thought that way we’d have no money left. I’m sorry but that’s a losers mentality.

 

[Hay Dude]

One thing that kinda gets me is if I mention something, someone says where's the source? If I post a link to a source, they say anyone can post links.

Google why fuel prices are currently rising. The first 10 links will show the same thing I posted.

”Sources” can be manipulated one way or another. And 90% of them appear to be.
However, the bill you receive for monthly fuel expenditures cannot. When someone’s fuel bill goes from $1000 to $1350, no “sources” or charts or links matter.
Multiply that by 12 and you are $4,000 per year and that comes right out of someones gross income.

 

[MossRoad]

Man that sucks. I am in a similar situation. I think a lot of folks don’t understand what a 30-100% increase in fuel prices does to their fellow Americans who operate machinery to put food on the table.
I just sold a piece of machinery back in October and the shipper who picked it up for the buyer was very shady. No DOT numbers and was to be paid in cash. His truck looked unsafe.
How am I supposed to compete with that when someone wants me to move a machine for them as a legal business?

I absolutely understand what an increase in fuel prices can do to someone with a business that relies on fuel. You have to pass the cost on to the customer, the customer can't afford it or won't pay, etc... and down goes your profit margin. If it gets to the point you're not making enough to cover operating expenses, you're done. I do understand that. I worked at a newspaper for 30 years. Our biggest expense besides people was newsprint. The prices fluctuated wildly, and similarly to fuel and refineries, paper mills would go off-line for various reasons like supply of timber, or glut of paper on the market, international trade wars, trucker strikes.... if we passed the cost on to the customer, they'd stop buying the product. Some years there was no profit. Well, you know the shape of the newspaper industry today. Going, going, almost gone.

Good luck to you.

 

[Hay Dude]

Good post Moss. Previous posts by you on the topic seem to be rather cold to the people who use fossil fuels to provide service. Kind of a “that’s just the way it is, suck it up, here’s the chart” kind of vibe.

Lots of small-medium size business owners out there that cannot pass the cost on. With the virus they now have new, more costly challenges to deal with on top of higher fuel costs.

Its difficult to explain to some salaried employees what rising costs do to the self employed.

 

[ruffdog]

My neighbor depends on fuel as he has a large excavating business. Normally, he takes time off in the winter but he didn't this year. He is booked solid for jobs and working 14hr days. My cousin owns a big equipment rental business and he has been doing very good the last 12 months. Both of them will pass fuel costs to the customer.

 

[lman]

I absolutely understand what an increase in fuel prices can do to someone with a business that relies on fuel. You have to pass the cost on to the customer, the customer can't afford it or won't pay, etc... and down goes your profit margin. If it gets to the point you're not making enough to cover operating expenses, you're done. I do understand that. I worked at a newspaper for 30 years. Our biggest expense besides people was newsprint. The prices fluctuated wildly, and similarly to fuel and refineries, paper mills would go off-line for various reasons like supply of timber, or glut of paper on the market, international trade wars, trucker strikes.... if we passed the cost on to the customer, they'd stop buying the product. Some years there was no profit. Well, you know the shape of the newspaper industry today. Going, going, almost gone.

Good luck to you.

I grew up on a corn, soybean and hog farm. Unfortunately we and farmers in general didn't set the price of our commodities. That is one reason why we wound up selling the farm. Farmers are required to produce more and more to make a profit and the price of fuel is one more factor that will break them. It doesn't even sound like you have a business so you only know what your boss tells you or you read.

I have also noticed that with the price of fuel goes inflation and I suspect that will be next.

 

[MossRoad]

Good post Moss. Previous posts by you on the topic seem to be rather cold to the people who use fossil fuels to provide service. Kind of a “that’s just the way it is, suck it up, here’s the chart” kind of vibe.

Lots of small-medium size business owners out there that cannot pass the cost on. With the virus they now have new, more costly challenges to deal with on top of higher fuel costs.

Its difficult to explain to some salaried employees what rising costs do to the self employed.

That's part of my problem with written conversations VS in person conversations. It's hard for me to get the gist of someone's inflection, tone, seriousness, etc.... I'd rather talk over lunch or in a fishing boat.

As for owning your own business, hats off to you and everyone else. I've considered it many times over the years, but realize I do not have the traits necessary to do it and keep my sanity for it to be my only source of income. I enjoy working for an employer. Always have. They tell me what they want. I deliver a bit more than they expected. Everyone's happy.

BTW, I'm hourly.

 

[MossRoad]

I grew up on a corn, soybean and hog farm. Unfortunately we and farmers in general didn't set the price of our commodities. That is one reason why we wound up selling the farm. Farmers are required to produce more and more to make a profit and the price of fuel is one more factor that will break them. It doesn't even sound like you have a business so you only know what your boss tells you or you read.

I have also noticed that with the price of fuel goes inflation and I suspect that will be next.

I know how a farm works. I have friends and family that are small dairy farmers, grain farmers, and some that raise beef (but not full-time). They are hurting. I understand how commodity prices are set, too. I also understand the economics of scale and how it affects small business. It's hard to compete when huge companies are focused on making pennies per sale when you need dollars per sale.

 

[HawkinsHollow]

I'm sorry but that’s a losers mentality.

You seem like a tough talk no holds bar kinda guy and I respect that. But you gotta take it if you can dish it out. There are so many factors that play into gas prices, lots of them beyond the control of us humans. For instance the recent jump was directly caused by a catastrophic winter storm that severely limited refinery capacity. Basically the highs and lows of gas prices is a reality of daily life beyond your control. To me a loser mentality is complaining about how the realities of everyday life affect your bottom line. You gotta take the good times with the bad. Gas prices have been good, they are normalizing now. It's on you to figure out how to deal with that reality.

 

[Hay Dude]

You seem like a tough talk no holds bar kinda guy and I respect that. But you gotta take it if you can dish it out. There are so many factors that play into gas prices, lots of them beyond the control of us humans. For instance the recent jump was directly caused by a catastrophic winter storm that severely limited refinery capacity. Basically the highs and lows of gas prices is a reality of daily life beyond your control. To me a loser mentality is complaining about how the realities of everyday life affect your bottom line. You gotta take the good times with the bad. Gas prices have been good, they are normalizing now. It's on you to figure out how to deal with that reality.

What exactly is it I am "dishing out"? I'm upset that fuel prices jumped 35% in 2 months. Thats a huge jump. If you call 35% in 2 months, which is like 200% annualized "normal", then I guess radical price increases is cool with you and not me. I can see why it doesn't matter to a guy with 2 acres and a 25HP tractor. Try it with 3 tractors that burn 5-10 gallons per hour farming close to 300 acres. 1 hour with a discbine/10 gallons/$20/hour is now $30/hour. Try 200 hours of that....thats 2 grand. Now throw in a couple hundred hours baling hay at 8-10 gallons/hour. You see what that costs?
This is "Tractor By Net" right? We talk all tractors, all sizes, all uses, right?

 

[ruffdog]

I have some big grain farmers around me and what really hurt them was the commodity grain prices TANKING. Sales to other countries was disrupted so the markets sucked.

Gasoline Prices Adjusted for Inflation | US Inflation Calculator

 

[CobyRupert]

An important question is has the value of fuel gone up; or has the value of the dollar gone down?
In May $1 = 7.13 Chinese Yuan, now it equals 6.47.
$1 = .9 Euro, now .83
Looks like a little of both?

 

[sd455dan]

I have some big grain farmers around me and what really hurt them was the commodity grain prices TANKING. Sales to other countries was disrupted so the markets sucked.

Gasoline Prices Adjusted for Inflation | US Inflation Calculator

yep, same thing happened in the US oil market.

Probably not much sympathy for oil producers- but many small working owner interest small producers and exploration either went out of business or absorbed months of losses early in the Pandemic.

Texas crude in April last year took a 300% drop in 1 month. Oil traded for MINUS 37 dollars a barrel. In other words they had to pay buyers to take the oil.

Business was REALLY bad for a person that paid over $40 a barrel to buy it.

 

[Hay Dude]

I have some big grain farmers around me and what really hurt them was the commodity grain prices TANKING. Sales to other countries was disrupted so the markets sucked.

Gasoline Prices Adjusted for Inflation | US Inflation Calculator

Maybe we can start a thread about GRAIN PRICES? This thread is about FUEL PRICES

 

[CobyRupert]

Exxon Mobil share price has almost doubled since November.
View attachment 688631
A relative left me some shares a few decades ago. I’ve never touched them. Value of them has increased $10’s of thousands since November. Over that time period I’ve probably had to spend an extra $45 at the pump. Dang gas prices!