It seems that when there is a price increase per barrel of oil there is always an instant increase per gallon. You would think it would take a while for gas to go up since the petroleum that is at the gas stations was purchased at a different price.Why is it when the price per barrel of oil goes down we don鈥檛 see an immediate drop in prices at the pump?
I see it all the time. It is obvious they tweaking out the decline as long as possible to make a few extra bucks, in millions.Why is it when the price per barrel of oil goes down we don鈥檛 see an immediate drop in prices at the pump?
The price of gas at the pump is driven by the wholesale gasoline prices, which is driven by oil prices.
There is also some greed involved.
if the price per barrel drops at say noon today, you arent going to see an instant drop in gas prices. my cousin owns a gas station and his prices change when he actually receives the gas. so if it went down at noon today and he isnt getting gas at his station until friday...his prices will change on friday...hope this helps...
Gas stations pay for the gas they recieve when they recieve it. Since it might take 2-3-4 days to emtpy the tanks and get re-filled there is a delay before prices change.
The biggest reason is that it takes about 6 months for the crude oil your reading about today to get refined into gasoline and sold to your corner gas station.
In other words, the gas your buying today was probably taken out of the ground as crude in November or December of last year.
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