Anyone notice that price of Barrel of oil is down but gas isn't???

@lpetges (3037)
United States
January 10, 2007 7:19am CST
Yep the price of oil fell below 54.00 yesterday, and yet still no price drop at the station/// when oil was $54.00 before, gas cost $1.18. what is that all about? I guess if they figure we will keep paying, then why lower it? but, when it goes up a dollar per barrel, we pay more the same day..
2 responses
@taiguy (478)
• United States
16 Mar 07
I think it takes a bit of time before the local prices reflect the barrel prices. Keep in mind the barrel price is for crude oil, and not refined gas. I have seen where the price has gone down on local pumps even though the barrel price went up. I also believe it has to do with how much gas we have stored in reserve. When the price is low I believe we buy much more gas than we need, and this in turn helps keep the price down at the pump even when the barrel is going up.
@lpetges (3037)
• United States
16 Mar 07
the second it goes up in the stock market it goes up at the pump.. i also think that now the heating season is over, so there going to get you at the pumps, full well aware that it would be hard on the economy to hit us with both high heating costs, and oil at the pumps.
• United States
10 Jan 07
I'm not expert but it might have something to do with speculation in the oil market and the actual costs associated with producing and distrubuting the gas. Not to mention now that they have found that people are willing to pay over $2.25 for a gallon of gas and its still selling it would be bad business sense for them to lower the price. I do home eventually some government agency goes after the oil companies for price gauging since Exxon I believe made 10 billion dollars in profit in just one quarter last year, that is only 3 months. This sounds like price fixing and monopoly to me.
@lpetges (3037)
• United States
10 Jan 07
yes, i agree totally. I don't know if we will ever get under $2.00 a gallon. Its sad how our country would rather sell the oil to china and make more money from them, then give us some relief.