If the price of oil has dropped by 50%, why has the price of gasoline only dropped 25%?

Gas Prices are falling. You need to realize that prices fall because of competition, not because oil drops. Yet when oil rises, gas prices rise..





The reason is that when oil goes up, the cost of producing oil rises. As such, they have to raise the price to remain profitable. When Oil falls, their margin of profit declines. If it was left up to a specific company, they would keep gas prices high. But because the company down the street lowers their prices a nickel and gets all the business, the Exxon on your street has to follow in kind, else it risks not selling any gasoline and going out of business.





Prices fall because of competition. Here is the 3 month price average across America





http://66.70.86.64/ChartServer/ch.gascha鈥?/a>If the price of oil has dropped by 50%, why has the price of gasoline only dropped 25%?
There are several factors that affect the price of gasoline besides the price of crude. For one thing, much of the price we pay at the pump is made up of taxes, also, 10% of the ';gasoline';at the pump is made from corn, not crude. The refining costs don't change nor does the storage, handling, insurance, maintenance of pipelines, etc. and the expense of the transportation of the fuel drops, but not that much.


If the price of oil has dropped by 50%, why has the price of gasoline only dropped 25%?
because it takes time for the oil companies to recover their losses due the previously unstable oil market...plus the fact that it's still unstable now. also because oil companies price their products based on the price of cruide oil of the PREVIOUS month. oil prices are low only TEMPORARILY because of the US financial market crash, which is rebounding quite quickly. You can be sure that oil prices will rise again just as fast as it dropped.
The price of gas didn't rise proportionately with the price of oil so you shouldn't expect it to drop proportionately.
lots of reasons, people reselling oil have to make a profit, refining etc costs money, shipping, all those reasons.
Because the right only get richer. Why should the poor people get an easy life when the rich people can keep ';living it up.';
The price of a barrel of oil today dictates the price of gas a month from now.
because the the owners need to make money


and because they get to choose how much they want to sell it for
one word - GREED