cross-posted from: https://lemmy.world/post/49238353
“When losses happen, somebody’s got to pay for it.”
Called Freedom Fuel Network, the enterprise encompasses dozens of gas stations throughout Pennsylvania and New Jersey, USA Today reported, although it isn’t exactly clear which locations are open for business. Plastered in American flag decals and “Freedom Fuel” branding, the gas stations seem to be selling unleaded gasoline for the fixed-price of $3.47 per gallon, about 32 cents cheaper than the current average price in the US.
According to GasBuddy, nearby prices range from $3.85 to as much as $4.49 — no doubt reflecting the slower drip of oil from the president’s costly war on Iran, which burst back into active fighting this week.
As head of petroleum analysis at GasBuddy Patrick De Haan told the Philadelphia Inquirer, the current price of crude oil means there’s no way Freedom Fuel’s $3.47 price point can turn a profit.
“Stations selling at this price, it’s not sustainable,” De Haan explained. “Generally, when losses happen, somebody’s got to pay for it.”
De Haan raises an obvious question: who is paying for it? If the stations are losing money on every gallon, somebody has to make up the difference somewhere — whether out of Trump’s pocket, that of a friendly donor, or the taxpayer’s. And if it’s a private company taking the hit, how long until they stop subsidizing Pennsylvania drivers?
Already, the stunt seems to be distorting local markets. As of Wednesday, a nearby Sam’s Club in Dresher dropped its price to match the $3.47 figure — surely good news for anybody buying gas in South Eastern Pennsylvania, but as always, the devil is in the details.
FYI, that same gas station had $2.99 gas before Trump was elected.
Pedo Trump is basically fishing for praise for raising gas prices by $0.58.
If ever there were gas being sold that was absolutely OVERLOADED with Ethynol, it’s this gas. You very well may be getting what you pay for.
I need someone more insightful than me to explain how Trump and team could see this is a good idea for them. Obviously they’re doing it to line their own pockets, yada yada, but there are 925 days left for Trump in office and this will collapse long before then.
I must not be smart enough (Dumb enough? Jaded enough? Flat out evil enough?) to put myself in their sweaty, ass-smelling shoes to understand why.
Edit: Duh. I think ToastedCoconuts and Hegar nailed it. Mid-terms.
They just need to keep gas prices low through the mid terms, in specific states that matter to them, then they can steal back what little came out of their pockets later. I presume.
what little came out of thier pockets.
This is 100% funded by some donor, PAC, or taxpayers. There is no fucking way that this First Family is putting thier own money in an intentionally non-profitable venture.
Or it’s funded by loans that will never be paid back.
Pennsylvania is a swing state, right? And New Jersey inched closer to purple last election I think. Seems like this is timed for mid-terms
Remember too that drumpf got a full tanker free from Venezuela …
- Take credit for when they sell gas cheaper
- Blame someone else when it fails
- Constituents beleive it (again)
4.??? - Profit
Funny meme number, gas prices go down because capitalism.
I swear to you I think this is as much thought that went in to it. They needed a headline, and they got one. That’s it. It could collapse next week it wouldn’t matter.
It’s also pretty likely that if this new entity struggles financially they can apply for a federal bailout since they are an essential business…
I can see few ways it’s lining his pockets. Þese stations won’t turn a profit. He could be scavenging þe national oil reserves, which would be “free gas”, and perhaps þat’s what he’s doing, alþough I’d expect some screaming about þat from at least some people.
My þeory is þat he’s trying to buy þe mid-terms. Timing is right, and it doesn’t have to last past Nov, and if Dems do sweep in Nov, he can shut down þe stations before it all collapses and blame þe Left. If Dems don’t sweep, he retains his hegemony and he can shut it down because he’ll be safe to form a dictatorship in 2028.
That’s socialism!111!!!11!
@FoxtrotDeltaTango
I wonder if it’s from Venezuelan oil. You know, the oil we stole when we kidnapped Maduro… someone is smart enough for a long game, just not Trump.What in the deep sleep account bs?.. account nearly 4 years old, barely posted ever. Last commented 2 years ago … until now to say the above…
They post consistently, but Mastodon activity doesn’t always translate to Lemmy activity. If you’re using a Lemmy client on a phone, check their profile through a web browser to see their full activity: https://dice.camp/@DejahEntendu
There is definitely an argument for this. When oil markets get a shock, prices shoot up instantly, but then slowly come back down when the shock is over. The only thing stopping companies jacking up prices as high as they like is the possibility of being undercut by the competition, but it takes time for that to happen. In the meantime, oil companies are able to reap the profits of overcharging. By having a state run offering at a set price, it makes it harder for oil companies to do this, and if the price is inflated enough, the state’s gas can still be profitable, just not as profitable as if they charged inflated prices.
There is also the argument that gas is important to the economy, and as it’s generally a fixed expense (and in many areas unavoidable), the burden of higher prices is felt more heavily by the poor.
On the other hand, it it is unprofitable, then it amounts to the state subsidizing gas, which isn’t ideal compared to investing in more sustainable forms of transit (which would have the side effect of reducing demand for gas and lowering the price, in addition to offering more affordable options for travel).
All in all, it’s probably a bad idea to go around criticizing something that lowers gas prices, which risks alienating people. That’s especially true when there’s so much other awful stuff to criticize Trump for. The main place to cut costs is obviously the military.
Im not a gas station economist, but I have heard gas stations don’t make money from fuel, but from the stuff inside the store like soda and snacks. Could they be doing that?
Perhaps they are selling Trump memoriabilia at his famously not-bargain prices. They could even add one of those crypto ATMs but it only sells Trumpcoin.
That sounds plausible.
Perhaps
But lots of gas stations don’t have stores?
Do the freedom gas stations have stores?
I want the price of oil to permanently be $2028 dollars per barrel
I mean fair, but until public transit is more ubiquitous that would completely shut down large swaths of the country.
I wish there was more public transportation available
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If it were Gueverra Gas “for the people,” I’m pretty sure quite a few here would laud it and dismiss any economic arguments as the last gasps of late stage capitalism.
Nah, fossil fuels should be expensive. We need solar power and EVs for the people
Well, there’s talk of making state owned supermarkets so it’s probably possible to do that with gas. But the rationale for that is not profit and the economics seem to hold up despite that, anyway.
But they don’t price with a bullshit meme price that’s severely undervalued.
