How is it that gas stations are still charging alot of money if oil is going down/?

Question

How is it that gas stations are still charging alot of money if oil is going down? I thought gas stations were regulated and could not charge what ever they feel. If they are not how is it that gas is still high and yet oil is at an all time low in over 8 weeks and might get to 100 a barrel soon?

Answer 1

Gas is sold by the tanker, which IIRC is 8300 gallons. Each grade of gas has its own underground storage tank, so depending on the layout, a typical station has four tanks each holding about 10,000 gallons. (They buy before they run out.)

The gas station owners already paid the higher price and continue to pass it on to customers.

Answer 2

Most people are too stupid to understand this but it's kind of a messed up system....

Like someone else said above, the gas that the gas stations have is old. Which means they paid for the gas they currently have a few weeks before. I do admit that gas stations only bring down the price once they see their competitors do it. In reality they can charge whatever they want.

Answer 3

Gas stations don't sell oil, they sell gasoline, which is a LOT of steps away from oil...What REALLY is inexusable is gas going UP as quickly as oil does, since the same lag occurs there...

Answer 4

Good Question! You should go ask a gas company. Im sure if you go to a gas station, they will not know either!