Why are the prices of gas going down very slowly?

Question

Whenever we heard on the news that the prices of barrel of oils has jumped HIGH the next day or as soon as possible, the gas stations prices for gas go EXTREMELy high too as well! But now that the barrell has gone down lower...the gas stations prices have gone down but very very slowly.

Why is this? just $$?

Answer 1

you should be rejocing, it's better t go down then up.

Answer 2

If you were buy gas @ $4.00 a gallon would you sell it for less than $4.00 a gallon? This price hike has been painful and has been happening since last fall. A barrel of oil a year back was trading for $70.00 a barrel. The pice has doubled in about 12 months, it could take a while to come down.

Gas where I am was $4.19 last weekit is now $4.07.

It will slowly come down sadly.

Answer 3

Although the barrel prices have gone down a lot in the past two weeks we, the United States, have already purchased an abundant amount of gas from overseas for the price that it was two weeks ago so gas prices will remain somewhat high in ratio to the barrel prices until they have sold what they have already bought.

Answer 4

I own 4 gas stations and deal with this everyday.

It is just a function of inventory that causes the prices to rise fast and drop slow.

Lets suppose you are a gas station owner and you sell 1,000 gallons per day of unleaded at $1.00 per gallon.  Now lets suppose today you notice that you have 2,000 gallons left in your underground storage tank.  You paid 90 cents a gallon for that 2,000 gallons.  Now  you order another load.  A load is 10,000 gallons.   Lets say that this new 10,000 gallon load will cost you $1.10 per gallon (that is 20 cents more than what you paid for the last load).  If you want, you can go ahead raise your price at the pump and make extra money on the remaining 2000 gallons.  Hence the quick rise.

Now, if the example were the other way around and your new load was 20 cents lower (70 cents per gallon) , you wouldn't want to lower your price until the old fuel was sold at a the higher price.  If you didn't wait you would lose money.

Answer 5

Well I don't care why it is going down I just care that it is going down because it better its driving me crazy.. sp far today I saw a gas station have regular at 3.79/gal Cash price

I live in Detroit

Answer 6

The change in the price of a barrel of oil takes about three weeks to affect the price at the pump.  The price was rising so quickly that it appeared to be instantly affecting the pump price.