Post
Topic
Board Economics
Re: Fuel prices hitting an eight year high (but still below 2008 prices)
by
DaveF
on 16/10/2021, 13:27:30 UTC
If you look here https://tradingeconomics.com/united-states/gasoline-prices and click on the 25 year chart
or here https://www.eia.gov/dnav/pet/pet_pri_gnd_dcus_nus_m.htm you can see that we are nowhere near the high price mark of fuel.
And those charts are in unadjusted $ so the price in todays money would be higher.

Now that the worlds economies are recovering from the pandemic prices are going to go up.
Transport and logistics are a mess at the moment so prices are going to go up.

Running around looking to blame green energy or the evil oil producing countries is not giving the full answer.
I asked about costs a few posts up and stompix posted a link about Germany spending $38 billion on green energy
Which looks like a big number.

But the Renewable energy surcharge for Germany went from 23% in 2018 to 21% in 2019 and is 20% in 2021
The grid cost was about the same (my question) however the cost of acquisition for the power has gone up from 21% to 24% of the bill.

Part of that cost is the profit for the suppliers. Anyone want to check on their profit margins?  No, OK I'll save you the effort.
Although 2021 numbers are not out yet:

https://group.vattenfall.com/press-and-media/pressreleases/2021/vattenfall--year-end-report-2020
https://www.macrotrends.net/stocks/charts/RWEOY/rwe-ag/profit-margins
and so on.

Germans are paying for corporate profits. Green energy is just a scapegoat.

-Dave