When price per barrell of oil goes down, why dont the gas prices go down?

Question

a friend of mine at work wants to know, why dont the prices go down as quick as they go up? oil drops but the cost is the same, oil rises and immediately the cost is higher.

Answer 1

people want to make more money

Answer 2

Those two other answers are disgraceful.

A drop in oil prices isn't reflected in gas prices right away because it takes a while for the oil that's purchased today to be refined and distributed.

It's not because they make more money.

Sometimes the price of oil goes down and gas prices go up. This is simply because the gas that's entering the stations' tanks was produced from oil that was at a higher cost a while back. In other words, the gas you buy today represents the price of the oil back when it was purchased.

Hope this helps.

Answer 3

Ahhh; capitalism at work.

Answer 4

Because when the price of a barrel of oil goes up the gas companies raise their price immediately.  When the price of a barrel goes down the gas companies will eventually lower their prices.  This is called s***w the consumer.