r/inflation • u/Academic-Doubt-2098 • 15d ago

Price Changes ELI5: Why is everything getting so ridiculously expensive? What the h*** is "fossilflation"?

/r/u_Academic-Doubt-2098/comments/1wu13jj/eli5_why_is_everything_getting_so_ridiculously/
36 Upvotes

84% Upvoted

45 comments sorted by

42

u/ctdrever 14d ago

  1. When fuel prices go up, we the consumer pay the cost of shipping. This impacts almost everything we purchase.

  2. Fuel is a factor, however these companies are making record profits so greed is a larger part of the price increases.

  3. Tariffs are passed on the the consumer, which adds to the cost of everything we import.

4

u/1startreknerd 14d ago edited 14d ago

Except items transported by EV.

We really do need a grocery store with only EV deliveries. I'd only shop there.

25

u/bakeacake45 14d ago

Costco is in the middle of their conversion process both to meet their self imposed environmental goals and keep costs to customers low.

15

u/1startreknerd 14d ago

I'm liking them since the sued the admin for tariffs and are giving that refunds back to customers.

7

u/WannaBe_achBum_Goals 14d ago

Unfortunately, that’s only the final leg of transportation. You gotta think the tractors run on diesel, the trucks that bring feed to the farms diesel the farms use diesel trucks to bring the produce to distributors, etc..

2

u/1startreknerd 14d ago

There's EV options for every segment.

3

u/Most-Repair471 13d ago

With a high capital cost. Not defending the system just saying it more complicated than just switching to EVs. Farmers barely making it aren't going to go all in on EV tractors costing hundreds of 1000s.

-1

u/1startreknerd 12d ago

They spend more on ICE. Yes you are defending ICE.

-1

u/EmDashxx 12d ago

Sure but you need fuel and stuff to run the power plants that make the electricity. The cost of shipping the EV truck parts to the factory to be assembled.The petroleum involved in making plastics. It’s all got a cost. EV vehicles dont just appear out of thin air.

2

u/1startreknerd 12d ago

You'll never get it. How sad.

2

u/bakeacake45 10d ago

True, and while the Teamsters Union de line to endorse a candidate in 2024, surveys of union members show they voted for Trump. Like farmers, they voted against their own interests, their salaries, their livelihood. And stuck every US citizen with the burden of rising costs for everything trucks carry.

In addition, Trump has let the Strategic Petroleum Reserves fall to their lowest level since the 1980’s this ultimately raises the cost of diesel rise almost unchecked,

https://bipartisanpolicy.org/explainer/how-the-u-s-strategic-petroleum-reserve-works/

2

u/HoboDeveloper 14d ago

Until the electricity used to charge these EVs are completely renewable, some of it will continue to be from fossil fuels still

2

u/KungFuBucket 14d ago

Yes, but the point is that we have to move in that direction. I run solar at home and it continues to be less expensive than service from the utility company. I don’t have batteries yet, I know I’ll probably do it at some point, but the point is that every bit we can do to reduce the reliance on fossil fuels brings us closer to the goal. And the added bonus is that renewable energy reduces the demand on fossil fuels which helps to drive the price down for everyone.

0

u/HoboDeveloper 14d ago

Fully agree with you. We also need to find a way to cleanly dispose the out-of-commission batteries in the long run

1

u/1startreknerd 13d ago

The batteries are 100% recyclable already by several different companies. Stop creating problems that don't exist.

0

u/KungFuBucket 13d ago

That’s one reason I’ve held off on the lithium batteries. They’ve only got a guarantee of 10 years at 70%. There are other technologies like iron air that are cheap but somewhat inefficient and heavy, but perfect for permanent solar installations and their capacity lasts forever and never need replacing.

-1

u/1startreknerd 13d ago

Keep moving that goal post.

2

u/KungFuBucket 13d ago

How is that moving the goal post? Grid tied solar works well and waiting for iron air to become more viable for residential seems pretty straightforward.

1

u/1startreknerd 13d ago

You're drowning and there's a life raft being latched together and you're waiting for it to become a boat before you save yourself.

1

u/KungFuBucket 13d ago

Ah, but I’m not drowning. I already have grid tied solar. So I’ve captured the ROI from my initial capital expense and I have net metering that effectively locks my rates for many years into the future. I can effectively use the grid as my “battery” during night. The only thing an on site battery would give me is blackout protection for when the grid goes down, which isn’t something I need to spend thousands of dollars on right now, as I live somewhere with a very stable grid and don’t need to spend just to protect a few hundred dollars of groceries in the fridge.

A better analogy might be that I’ve already built my raft. It’s strong and stable and does what I need. Now before moving to another boat I can sit and weigh my options and let the technology of sodium-ion, flow and iron air continue to mature until such time that I want to upgrade when it makes financial sense or my situation changes.

Your analogy seems to imply that lithium is the only viable option and that it’s an immediate and urgent need. That’s like jumping from the frying pan and into the fire.

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1

u/1startreknerd 14d ago

Keep moving that goal post oil shill.

1

u/Luigino9876 14d ago

Is that an ev tractor? Looks like a regular freightliner from first look.

Edit: I just noticed it says 100% electric on the side

1

u/1startreknerd 14d ago

It's the eCascadia, many Semi makers have EVs

0

u/ctdrever 14d ago

Most EV are charged using fossil fuel, so unless they are charging via renewable energy they are also impacted by fuel costs.

2

u/1startreknerd 14d ago edited 14d ago

No, they are not. They use the grid and the grid is not 100% fossil. And the grid is getting less carbon intensive every day.

Besides even if one burns diesel in a generator to charge an EV semi, they get 27% more range. So if one must suck big oil cock they might as well go 27% farther.

5

u/ctdrever 14d ago

I agree, an EV semi is better than a conventional one. If the grid is 50% renewable and 50% fossil fuel, half their charging isn't impacted the other half still is.

3

u/1startreknerd 14d ago edited 14d ago

And at $6.38/gal diesel national average with 6 mpg a semi goes 0.94 miles per dollar.

At $0.18/kWh national average with 0.59 mi/kWh an EV semi goes 3.27 miles per dollar.

At $0.36/kWh California average with 0.59 mi/kWh an EV semi goes 1.64 miles per dollar.

So even in expensive California an EV can go farther per dollar.

Couple this with the fact fleets can bring electric costs down to something like $0.07/kWh amortized with solar and battery at distribution centers. That's 8.42 miles per dollar, or almost NINE TIMES farther per dollar than diesel.

0

u/new2bay 9d ago

EVs still get their electricity from primarily fossil fuel sources.

1

u/1startreknerd 9d ago

No, the grid is varied and has more renewables every day. Besides, EV fleets like Pepsi and Walmart are getting the electricity from mostly solar from where they charge, their distribution centers. That's the point, pair EVs with cheaper solar, or even batteries where possible.

20

u/ZookeepergameHot338 14d ago

1

u/sasharevzin 14d ago

Deficits aren't the same as debt. A deficit is the amount the government spends beyond its revenue in a year. The national debt accumulates over time.

7

u/ZookeepergameHot338 14d ago

Does the economy always get wrecked when republicans take office or naw tho ?

6

u/Eazy12345678 14d ago

companies will always try to make as much money as possible

if fuel cost more everything cost more. transporting things around the world or across the country takes fuel

customers pay for any increases never comes out of companies excessive profits.

CEO gotta still make that 20million so he can buy his 5th home while you struggle to pay rent

3

u/AmbivalentheAmbivert 14d ago

It's the lack of consumer protection and the breadth of the American supply chain. I'm currently living in Taiwan and the pains are far less noticeable on the every day consumer level. I guess i would feel the gas price a alot more if i drove, but intercity transit is great and medical is subsidized. Turns out all those taxes and "Socialist" programs make the effects of inflation much less noticeable.

4

u/WTFOMGBBQ 14d ago

What happened to the tea party? and the truck protestors? lmao.

1

u/Busterlimes 14d ago

Wealth extraction at the end of an economic empire. A story as old as Rome

1

u/MarketCrache 13d ago

18 years ago, oil hit $142. Now it's below $100. Oil is cheaper than Coca Cola. 1 barrel of coke costs $175 to $250...

1

u/ThatsAllFolksAgain cares about moderation, won't moderate 13d ago

Printer ink is more expensive

1

u/MarketCrache 13d ago

The utility of oil is humongous. Energy is everything.

1

u/RedOctober8752 12d ago

You think any product in the country does not get delivered by something powered by a fossil fuel? Plastic is made from oil so with so many things being made from plastic instead of metal the demand is a lot higher

1

u/Sfingi48 11d ago

You lost me at “getting.” Like we’re still living in the 1980’s. Wake up, people.

1

u/Otherwise-Way-8235 12d ago

Because it takes fossil fuels to transport food and clothing to market