Oil major BP on Tuesday reported a nearly 70% year-on-year drop in second-quarter profits on the back of weaker fossil fuel prices, echoing a trend observed across the energy industry.
Oil major BP on Tuesday reported a nearly 70% year-on-year drop in second-quarter profits on the back of weaker fossil fuel prices, echoing a trend observed across the energy industry.
Average price of gasoline in the US in July of 2019 was about 2.80 per gallon. In July of 2023 it was about 3.60 per gallon. This is about a 27% difference.
Based on official us inflation rates (CPI) in 2020, 2021, 2023, but only through march of 2023 the price would be 3.40 per gallon. That isn’t that far off, especially when my calculation is missing inflation data for 4 full months.
tl;dr This is what inflation does to a mf’er. $3.70 to 3.80 is almost certainly the new normal, it won’t be going down unless the US economy experiences deflation.