Why is it when the price per barrel of oil goes down we don’t see an immediate drop in prices at the pump?
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.
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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.
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.
The industry is according to grant and insist, now not ratios. If oil dropped yet yet another 40% consistent with barrel do you extremely think of of you will see that style of loss on value? Oil loss 40 % consistent with barrel as a results of actuality whilst? documents can consistently mess you up.
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.
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...
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.