Price lag. There is still expensive gas in the tanks. This is a normal thing and has happened many times before.Oil prices have fallen from $135 to below to $125. but gas prices remain the same. why?
Partially because the mass majority of the country expects gas to stay high like that goof at the top of the answers. But really the price that you see is sweet crude oil per barrel. The price that you see today is what it was traded on the market for today. These costs tend to trickle down the supply chain and are not reflected immediately because of this lag. Producers purchase crude oil to refine into gasoline and then sell that to suppliers who sell to us. Also remember that during summer months gas always makes a climb in price the further into summer we get due to the raise in demand of gasoline. These two changes in the price and the demand are lliterally cancelled out to where you don't notice much of a change in price, just a change in quantity supplied.
You have to figure in the cost of refining the crude, and also the cost of transporting the gasoline...
surcharges per mile are anything from 30%-50% depending on the price of gasoline/diesel.
So by the time the gas station has paid overages for refining and transportation... the end user (consumers) are paying for 2 middle men... and that's also depending on the pocket depth of the middle men... we're at the tail end of the gasoline prices, we'll see the price drop last...
give it time, and stay hopeful.
You must be new to the driving world. There is a whole stack of reasons why. First and foremost, the gas that is in the ground at the gas station was bought at a higher price and THAT fuel is still there and THAT fuel price is the price you have to pay to get it out otherwize the gas station owner is out of pocket.
Gas prices ALWAYS go up faster than they go down. Something to do with evaporation ';I think'; Gas wars between stations is the only way it comes down faster.
Short termed fluctuations in the market does not warrent a decrease in fuel prices as much as an increase.
We station owners don't wanna.
Why do you think for the third year running the oil companies report the highest levels of profit ever! they do it on by riding our hard earned dollars...I spend 120.- a week just to go back and forth from work with a relatively low fule consuming car...
I think we ought to create a band of angry citizens to hunt down oil company CEO's and throw into an oil pit and set it ablaze...maybe they'll get the message.
It takes a bit of time for actual price at the pump prices to reflect the downturn in per barrel prices. It has a lot to do with the futures markets and supply and demand.
It usually takes a couple of weeks before you see a difference at the pump. If the oil prices stay around this level for at least a couple of weeks, you should see a drop in prices at the pump.
why should they? there's only one way to go in the gas war baby, and that's up. Gas is never coming down, so get ready to pay 5 a gallon by july 1st.
Gas prices are RISING while oil fell for some time now. I think it is greed by now. I asked this question a week ago and no longer believe anything else.
The answer is fairly obvious- GREED!
Have you seen the kind of profits some of the oil companies our making these days?? They are richer than some nations. I even think Exxon is giving Wally world a run for the money
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