Why is it that the price of a barrel of gas has declined yet the price at the pumps remain the same??

Question

For the last several months, every time the price of crude oil rose on the stock market, the price of a gallon of gas rose at the pumps. At one point, a barrel cost about $147. That amount has dropped to around $120 recently, yet the price per gallon has remained the same. Shouldn't the price at the pumps decline as well???

Answer 1

It does take time, normally 3 days for the change in oil prices to hit the gas pumps. Gas stations owners have been taking a big hit on their profits on gas trying to get people into the store so they will buy cokes, chips beer ect. No gas stations owners are not greedy, they are slow to bring down prices to recoup some profits they did not get for a year,

Answer 2

We all ask that. Its about greed. The govenrment will always come up with some excuse. Dont ever except things to get better. Its not abouto being bitter its just a reality check. Either live ith it or get a better car to deal with the crazy pump prices.  

Answer 3

The oil companies are in the business to make a profit.  They have found a dollar amount that gives them the most profit at this time.  If the price goes up more, people drive less.  It's all part of capitalism.

Answer 4

It always takes less time to JACK UP A PRICE...

then to LOWER IT.

Answer 5

Here in Louisiana our gas prices have dropped about 30 cents per gallon thus far.

Answer 6

When you find out let the rest of know.   I have not gotten a straight answer to that question since 1974.

Answer 7

Where I live (Cincinnati, OH) the price at the pump has declined about $0.40/gallon over the past few weeks.  Maybe it's different where you live.  Are there fewer suppliers where you are?  The lack of competition could inhibit price-minimizing market forces.

Answer 8

Yes it should. Think about this.\:

When oil was $60.00 a barrel, gas shot up to $3.00 /gal and went back down.

When oil was $100.00 a barrell gas shot up to $3.00

at 140.00 a barrel it went to over $4 per gallon.

When and if it returns to $100 per barrell will it return to $3.00 and why when it was $60.00 was gas $3.00  it does not compute.