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How is it the price of crude oil has dropped almost 20% but the drop at pump price is less than 5%?

Will the price continue to come down?

Why doesn't the price of gas go down the same amount of the drop in crude oil prices?

If the average price of gas was $4.00 per gallon when crude was $147.00 per barrel it should be less than $3.50 per gallon now that crude oil is down to 123.50 per barrel.....what am I missing....

5 Answers

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  • 1 decade ago
    Favorite Answer

    There is still a shortage of U.S. refining capacity, and it's only going to get worse.

  • Anonymous
    1 decade ago

    Part of the reason is that 123.50 a barrel oil hasn't been refined, turned into gasoline and delivered to the gas stations yet. Also, demand for gas may be different than that for crude.

  • Anonymous
    1 decade ago

    When all logic fails, yell supply & demand.

    Don't worry it will be coming back up soon enough, that will erase all hopes of the price at the pump actually catching up withthe price of crude on the market.

  • Anonymous
    1 decade ago

    the price at the pump had quit going up while the price of crude was still rising.

    source: educated republican

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  • Anonymous
    1 decade ago

    only if it doesn't go back up...

    you notice when the price of oil rises, the price of gasoline rises instantly...overnight.... but when it decreases, we don't see a decrease in gasoline for weeks or months.

    it's called speculation...

    http://www.youtube.com/watch?v=AdRbuUQNcxw

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