Why Pump Prices Haven’t Fallen As Fast As Oil (Don’t Blame Greed)

Crude oil prices have dropped dramatically since last summer. Strangely, over the same time period the price at gasoline pumps fell much less. If a barrel of oil today costs less than half what it did last summer, why hasn’t the price people pay at the pump decreased a similar amount? Continue reading

Why Isn’t the Price I Pay For Gas Falling Very Much?

If crude oil prices have dropped almost 25% per barrel since June, why haven’t gas prices at the pump decreased a similar amount?  At the end of June a barrel of crude oil on the NYMEX exchange was selling for over $103.  This morning (Oct. 16th) the price was below $80 a barrel.  At the end of June the average gas station in the USA was selling a gallon of regular unleaded gasoline for $3.70.  The government shows today that the average price is $3.21, a drop of only 13%.  Why has the price at the pump fallen by roughly half as much as crude oil prices? Continue reading