Why haven't gas prices kept up with the price of crude oil?

Saw .15/gallon today at the pump, when a barrel of crude oil is selling for ..A few months ago, when it was selling for around , I paid .65/gallon, at least one time that I know of. Both prices were at the same station.

16 Responses to “Why haven't gas prices kept up with the price of crude oil?”

  1. wt526 Says:

    To learn about the gas price, you need to first understand the components of the gas price. The following page clearly illustrates how the gas price is derived. It also has a link to another article describing why gas price fluctuates. Check it out and hope it is useful.

  2. robvanyam Says:

    no

  3. ♥♥Because I'm Gorgeous♥♥ Says:

    I know this really isn’t an answer, but my dad was wondering the same thing a few days ago…
    it really doesn’t make sense.

  4. Nothingusefullearnedinschool Says:

    There are many factors, including the available supply.

  5. B.Kevorkian Says:

    There is a substantial processing time lag between the spot market on crude, and finished products leaving refineries. Though a sudden increase in crude will often trigger a smaller increase in the price of refined products due to speculation or increased demand from consumers who fear a shortage.

    In the US, there are also seasonal variations in demand, with prices generally being higher in the summer months due to increased demand.

  6. ebedsworth Says:

    There are more issues that just the price of crude oil which go into the price of gasoline. At the earlier period, many of the refineries were having production issues – so the pricing was higher based on a more limited supply from refineries not from the price of crude.

  7. Dat bx kid Says:

    because all the government wants is money da…..

  8. fire_side_2003 Says:

    We are heading into the Holiday season which will also aid the supply and demand scenario. Demand is high and supply is low coupled with the high price per barrel gas prices will continue to rise.

  9. larry c Says:

    Just be patient. They’re talking 4 to 5 dollars a gallon by next spring. Let’s see how many folks can live with that…

  10. redd headd Says:

    there is a delay, they have to refine the oil and it takes a few weeks to change much.

  11. C B Says:

    And it costs the oil companies $2-$5 a barrel to pump, and another $8-$10 to refine. So they pay $18 on average per barrel real price. So to answer your question, it is all about greed. It totally does not actually cost $98 for CRUDE.

  12. kaoneill88 Says:

    Supply and Demand.
    If there is a demand for gas, the people at the gas stations will try and drain as much as they can from you.
    Last year, gas in NY had just hit $3. but when i went to school out in OH, Gas was only $1.99..
    Its all about the surrounding economy and demand for gas.

  13. Claude D Says:

    sounds like you R complaining that the price of gas is not high enough. maybe U can afford higher prices, I know I can`t

  14. rofe Says:

    could be we were getting gouged. All the enviro’s activity preventing production, refining capacity, pipeline construction, offshore and ANWR drilling is finally catching up to us isn’t it.

  15. Spartan316 Says:

    speculation, but the oil companies have figured out that we won’t pay too much more than we already are. gas prices have more than doubled in the last 10 years. Prices of a barrel were the same a few months ago (year ago?) as they were in the oil crisis of the 70’s, yet prices at the pumps were much higher recently. Doesn’t make sense when you look at the time value of money. The oil companies often say that prices depend on reserves, but when prices go up and down quickly i have a hard time believing that one. Personally, i think its jsut a capitalist sham.

  16. Rover Says:

    The Federal Reserve Banking system manipulates the price on all commodities, so there is no such thing as true supply and demand.