Why arent gas prices falling in line with the drop in oil prices?

Question

The price of oil has fallen from 147 to 124 - a drop of 15% - when oil was at $147, the price of gas here was $4.00, so a 15% drop should result in gas being approx 60 cents less, or $3.40 - why arent we seeing that now, and why wont we see that in a few weeks once the prices catch up. the analysts are saying we "may see a 25 cent drop in the next few weeks.

Answer 1

price gouging

Answer 2

because

government = corruption + greed - common sense

lol

Answer 3

because big oil loves your money and they only have a short time left in which to fleece us all since big oils cronies will be out of political office come 2009

Answer 4

Prices are coming down where I am.

Answer 5

PROFIT!

Answer 6

I don't know where you live but the price of gas has come down in MA.

Answer 7

The gas stations are still selling gas purchased earlier when the price was higher.  For a barrel of oil to be refined into gasoline and shipped to gas stations and then be sold takes some time.  The gas you buy today came from oil purchased some time ago.

Answer 8

Gas prices never come down as fast as they go up, and this is because oil companies are getting used to their record breaking profits every quarter. The key here is to keep demand down while they begin to fall or they will start to rise again if the demand increases.

Answer 9

Because we have so many bonus greedy chairmen in charge of the utilities - the more profit they make the more THEY rake!

Answer 10

You have to remember that is the price of CRUDE oil, gasoline is a derivative of crude oil that takes a long time to ship, refine, process, then finally sell to the end user, so in order to see a price drop in gasoline, when production increases for various reasons, or the price just drops, you need to wait a short period of time.