As crude oil drops to its lowest price since January, a new analysis shows Big Oil’s continued price gouging with no end in sight. Accountable.US released the new analysis confirming Big Oil’s record profits.
Oil prices dipped below $80 a barrel for the first time since January 2022, but consumers are paying 13 percent higher than the last time oil was this low, the analysis reported.
“As crude oil prices plummet, Big Oil’s thinly veiled excuses for price gouging break down,” Jordan Schreiber, director of energy and environment at Accountable.US said. “Instead of passing the savings down to consumers trying to financially recover from the industry’s unprecedentedly high prices at the pump this summer, Big Oil decided to further line the pockets of its wealthy shareholders and executives with more of everyday consumers’ hard-earned money.”
According to reports, Big Oil raked in more than $138 billion in profits last quarter.
“Oil companies are reporting record profits. Shell said it expected its refining profits to nearly triple, adding $1 billion to its bottom line, as the price of oil products surged because of a lack of refining capacity. BP reported its largest quarterly profit in a decade,” The New York Times reported.
While oil companies saw their profits skyrocket, retailers continue to keep the price of gas elevated even after the price of crude oil has decreased to try and recoup money from oil price spikes.
“When oil prices rise so quickly, many gas stations will take a loss because they can’t
raise prices fast enough due to local competition. WHO reports that when prices drop, many
stations will try and recoup some of those losses by slowly lowering their prices,” KHAK.com reported.
Gas prices continue to sit above previous 2022 lows even after a 98-day streak of crude oil prices plummeting. According to AAA, gas prices edged higher—by a penny—to $3.68 a gallon, on average, in August.
“Given this is all after Big Oil raked in a record-shattering $138 billion profits last quarter, it’s clear their greed knows no bounds,” Schreiber said.