« If You’re Going to Pay Extra on a Loan, Do it Sooner Rather Than Later | Main | I’m Concerned With Generation X’s Retirement Goals »
Go Figure! Oil Drops 11.2% This Week and Gas is Down 1.5%
By JLP | July 18, 2008
I know that oil prices and gas prices don’t always move in tandem but it sure seems like gas prices follow oil up and are reluctant to follow them back down again. Take this week for instance: Oil prices were down 11.2%. Yet, this morning I noticed that my local Kroger dropped the price of gas a WHOPPING $.06 per gallon or 1.5%. It’s frustrating.
They raise prices on a whim, why can’t they lower them the same way? I know the answer, I’m just ranting.
Okay, I’m done ranting for now.
Topics: Rant |
July 19th, 2008 at 1:58 pm
Maybe it is a good thing we do not know the raw material price of more goods, with precision… less internal friction.
July 19th, 2008 at 2:29 pm
you now fill your tank with gas that was bought by the refinery few weeks ago. on the other hand the reffineries have been making very little profit in the past 6 months as they could not increase the gas prices as fast as they had to pay more for the crude oil.as far as I remember the gas prices were behind the crude oil prices on the way up, so they will be behind the oil prices on the way down ( if after all there will be indeed a way down for the oil prices).
July 19th, 2008 at 2:36 pm
Hoosier,
I’ve heard people say that before but I find it hard to believe.
July 20th, 2008 at 9:01 am
The data I saw showed crude oil affecting 76% of the price of a gallon of gas. However it does appear that it goes up faster than it goes down. Do you think the fact that President Bush accounced off shore drilling has any effect on the price of crude, or was it simply a coincidence?
July 20th, 2008 at 12:10 pm
As they always tell us when the price of oil is going down: “The gas you are buying today was oil 3 months ago”.
Somehow they lose this line of reasoning when they set the price of gas upwards each time oil moves up.
It’s no wonder the gas and oil companies are breaking records for profits.
Do you really think that the US slow gas usage by a large percent if they were to jack the price of gas up to $8 a gallon? I know I’d still need to get to work each day. I’ve already made plenty of cuts in the rest of my driving. I think I could only shave off another 10% or so.