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 Pump Prices Haven’t Fallen As Fast As Oil (Don’t Blame Greed)
gasoline taxes
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 Why Isn’t the Price I Pay For Gas Falling Very Much?