Why has the price of crude oil doubled since this time last year, but gas prices are only a $1 higher?

Question

Crude oil is used to make gas!

Gas should be well over $5/gallon? I dont understand? There should not be this long of delay for it to hit $5.

Also, most bigshot investors are saying that gas won't go over $4 this summer??-hmm... it should since the price of oil doubled!!

What is going on?

Did the oil companies decided to stop making so much money???

http://bluemarbleclimate.files.wordpress.com/2007/07/oil-prices.png

above is a small graph to show how oil was between a year ago ($60-$70per barrel).

Now oil is at $133 per barrel!

(im not complaining, im just exteeeemely curious.) mostly because im board

i think a spelled boad wrong :)

Answer 1

be happy its not

Answer 2

It's not as simple as that. There are other things to consider, like taxes, tax breaks for oil companies, subsidies in many forms, how much it costs to produce gas despite the price of oil, and so on. All of these things go into the price of gas at the pump. That's why in some countries, gas is cheap, but in others, gas is expensive. Here in Japan, for example, I pay about 170 ($1.70) yen for a litre of gas. That's a lot more than what the average American pays for gas.

Oil companies are making money hand over first, don't worry about them.