Why are gas prices still high?

Question

The price of crude is down 21 percent from its high in early July. However, gas prices are only down 7 percent in the same period.

I understand the concept that the price of crude today needs to work it's way through the system. However, when crude prices were increasing, gas prices moved at the same pace in real time.

Gas, based on today's crude price should be around $3.25.

Answer 1

Someone didn't get the message to start opening the valve and let it flow to the public yet! The moment the oil people sense the public ire they ease up on the prices, and then when they think the populace has settled down again they raise the price! Their ultimate goal is to push pricing as high as possible regardless what demand or supply is at that time!

Answer 2

The gasoline you buy today was made from crude oil bought when oil was more expensive.  It takes time for oil to be refined to gas, shipped to your gas station and get sold.  All the people claiming that the gas stations are gouging you are uninformed morons.  Gas stations operate on a razor thin profit margin.  Just because the oil companies are pulling in record profits doesn't mean your local gas station is.

Answer 3

Here in NYS gasoline is selling for $4.23 - give or take a little.  This infuriates us.  What can we do about this gouging?  This is the same price we have been paying right along, and yet oil prices are going down.  Doesn't add up, does it ?

Answer 4

As Dave87gn says, they can charge what they like.

More and more, as it becomes apparent to big business, that they can profit as obscenely as they like, without government intervention, and with the knowledge that the general population is becoming more docile and sheep like,they will push for as much as they can get.

I don't know what sorts of insider, cartel type, activities go on, but it is hard to believe there is any honest competition going on

Answer 5

They are trying to get back what they spent. Would you sell at a loss? The price went up in "real time" to be able to pay for the next increase.

Answer 6

With the high gas prices these days I'm so glad I found this site that gives you a gift card for gas completely free! Check it out

Answer 7

because of the war that bush started. however oil is limited and companies have the right to hike there prices. it is call demand ans supply. the demand is high for oil and they is a lil bit of oil being drilled. how ever this can all change if the world unite. the leaders are running it into a wreck. God will be here sooner than we all think. the Bible is full filling.

Answer 8

The oil in the tanks right now is the oil that was made when the price was high, thus "futures".... wait a few weeks when it catches up...

Answer 9

because bush is still sitting behind that desk

Answer 10

No reason, the oil companies charge whatever they want

Answer 11

A camel farted in India.