Why were gas prices so fast to go up with the price of crude but are lagging behind as crude falls?

Question

I believe it is because the oil companies want to take more profits. It makes me mad actually that they post billions and billions in profit for just 1 quarter of the year at the expense of us hard working people and can't keep the same pricing standards no matter how the market shifts. Just because we have gotten used to paying more doesn't justify the slow decline at the pump but I hope I'm wrong.

Answer 1

Because the price of a finished product is not determined solely by the cost of its ingredients. Do you think a shoemaker would immediately drop the price of his shows the minute leather prices fall by some amount?

Answer 2

It's been that way forever. You're just figuring this out ?

For as long as I can remember, Gas prices have gone up fast, and dropped slowly ...

Answer 3

The main purpose of any private business is to make money for its owners.  And there is no law which says that they are not supposed to make a lot of money.  

If you don't like the way the oil is priced.  Then vote with your wallet and don't buy so much oil.  Take the bus or walk to work.  And if enough people do that.  Then the price of oil will come down.