Why have prices fallen at the pump with the decline in oil prices...?

Question

Oil prices rise and the price at the pump JUMPS by 3, 4, 5 cents (if not more) per gallon the day that the oil price goes up. Now the oil prices are dropping (thank GOD) but the prices at the pump are not reflecting that.... I know that here our prices are 4.15/gallon... the price has gone down 4 cents per gallon...

When the oil prices were where they are now a couple years ago we were touching $3/gallon....

Answer 1

government

Answer 2

oil will probably never go down to the same price years ago due to inflation. And prices for most things go up easily and fast but drops slowly since producers do not like to cut price even if they should.

Answer 3

1)  The prices at the pump don't ordinarily jump as soon as oil prices go up.  If they did the competition nearby could undercut them, still make a profit, and take their customers.

2)  Oil is not gasoline and you don't live at the dock where the tanker unloads.  Oil purchased at today's price has to be shipped to refineries, turned into gasoline and trucked to your local gas station.  The gasoline that you're buying today is made from oil purchased months ago.

3)  A couple of years ago oil was much cheaper.

Answer 4

Bush overturned the presidental ban on offshore drilling...now we are waiting for congress to pass the bill to lift the ban on the drilling and exploration here in the U.S. It takes both actions to get things rolling.  Just Bushs action had the impact of bringing down the price...just think if congress did their job and passed the bill..it would come down even further..Here in Ohio it is $ 3.54 per gallon today. We were paying $ 4.19 per gallon just 2 weeks ago.