Oil dropped by 40% per barrel, yet gas prices have only dropped 30 cents...WHY havent they gone down 40%?

Question

Oil dropped by 40% per barrel, yet gas prices have only dropped 30 cents...WHY havent they gone down 40%?

Answer 1

that is like the same exact question my mom asked lol

Answer 2

40%?  no.  But there are many reasons, one being that the raw oil cost is only part of the cost of gasoline.  Transportation and refining costs do not decline.

Answer 3

I told someone the other day, this was part of the 'plan'. Bump the prices WAY up, so when they came back down a little, we would be relieved, and would have forgotten that gas was 2 dolares 2 years ago.

Answer 4

The barrel price you see on the news is a future. It is a prediction of the price 3 months from now, not the price today.

If you want to educate yourself go to Yahoo Finance and then go to "view more indices" then go to commodities.

I really feel sorry for the great mass of people out there that don't have a clue.

Answer 5

147 to 113 is not 40%. 40% is 88.2. Learn some math

Answer 6

The market is based on supply and demand, not ratios.  If oil dropped another 40% per barrel do you really think you are going to see that kind of loss on price?  Oil loss 40 % per barrel since when?

Statistics can always mess you up.

Answer 7

They didn't go up 40% right away when oil jumped 40% either, there is a large delay from the oil being sold and the gas we use.

Answer 8

147 to 113. that's 40%

don't expect to ever pay less than $3.50 per gallon again.

Answer 9

I saw an article on this. They concluded when oil goes up the costs go up for everybody and the stations must raise prices. But when costs go down there is nothing forcing stations to lower gas prices.

The only driving force to lower prices is consumers shopping for the lowest priced gas. In the past they bought at the same stations out of habit too much. As long as the stations could still sell at the higher price there was nothing driving them to lower the price and cut their (slim) profits.

It will take the consumer shopping for the lowest price gas to drive the prices back down.  

Answer 10

gas in my area has dropped 85 cents in the last month and a half.

i never thought i would be happy to see $3.65/gallon

Answer 11

oil is not gas and gas is not oil.

there is no direct correlation with oil prices to gas prices.

gasoline is traded independent from oil. (RBOB unleaded gas). Oil is used  in many ways other than gas.  

Answer 12

GREED!!!