Diesel touched $8.99/gal this week. I want to know what happens when the sign runs out of digits at $10.
Is it tied to the cash register? Will the pumps run out of digits too? Will they still be able to sell gas?
One thing I can say: My F150 won’t care. It runs off solar.
The Simpson's had a nice take: https://www.youtube.com/watch?v=7dxVwA7bU2E
> . I want to know what happens when the sign runs out of digits at $10.
If you liked Y2K, you're gonna love 2.2f!
In Canada gas is priced per liter. Long ago it was under $1.00 and everyone was wondering what will happen when the price goes above a dollar. Then the signs could only do up to 1.99. Then it went over $2. Don't worry. They'll change the signs and the pumps and everything. Cost of doing business.
Fun fact. Oil and gas prices aren't coupled as much as people think they are. I think these days about 50% of the cost is the oil. When oil goes up it's an excuse to raise prices. When oil price goes down nobody lowers gas prices. There's refining costs, distribution costs, taxes, and oh, let's not forget - PROFIT! (about 20%-30%, mostly for the oil companies, not the gas stations that have pretty low margins). Another thing to consider is that the oil refined into the gasoline you're buying at the pump was not bought at today's future contract prices. You can bet your *%# that the refineries are hedging and trying to keep their costs as low as possible while selling to you as high as possible. Their profit skyrockets when oil goes high. This also influences how much reserves and storage are available. The reserves, oil in transit, and other storage all act as buffers. Point is that's not as simple as it seems.
I'm so happy that I drive a Tesla. I haven't been in a gas station in years. Switch to EVs guys!