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Why aren't we seeing gas prices that reflect the cost per barrel?

I believe it was 4 or 5 days ago the cost of gasoline per barrel was down to $96.00- yet we're still paying well over $3.50-$5.00 per gallon...

My personal pov and answer to my own ? is cynical...

However, I'm intrigued and interested in any well-educated response...

 
SarahElf.

Asked by SarahElf. at 1:02 PM on Oct. 4, 2008 in Politics & Current Events

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This question is closed.
Answers (6)
  • Mostly because the stock market is based on a good 6 months down the road--what businesses and investors THINK will happen in markets. The gas you are buying now was made from oil that was priced higher than that days barrel price. It is like spring clothing--buyers buy that way ahead of season so it is in the stores in time for the spring. I forget which airline hasn't raised prices as much because they made a "gamble" and purchased gas options a good year or two ahead so they would get it at the lower price. So just because the oil price is down, the gas station already contracted at the higher price and they have to recover their purchase price.

    Anonymous

    Answer by Anonymous at 4:04 PM on Oct. 4, 2008

  • Because someone is pocketing the money!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
    EmmahD

    Answer by EmmahD at 1:03 PM on Oct. 4, 2008

  • I think it's because we've all proved that we will continue to buy the gas no matter what it costs.
    bdotmom

    Answer by bdotmom at 1:18 PM on Oct. 4, 2008

  • Crude oil went up so fast in the last month sometimes with increases several times a day in price. Gasoline prices did not keep pace. Gas prices were raised an average of once a week. When the price dropped off of crude oil, they didn't drop gas prices so quickly because they were trying to recover the losses that occurred on the way up.

    njmommy2boys

    Answer by njmommy2boys at 2:08 PM on Oct. 4, 2008

  • Its being blamed on the hurricanes. Ike did shut down some refineries in the Gulf of Mexico, so the companies are claiming that they are having to pay more toget the oil refined. Personally, I think its a bunch of Bull, like the previous answer said, we have already shown we sill pay for it, so why not keep gouging the public? I bet if the CEO of Exxon didn't get his $1.2 million bonus (yes, bonus, not actual salary!) and that money went to pay for refining oil, gas wouldn't cost so much!
    chillemi78

    Answer by chillemi78 at 2:42 PM on Oct. 4, 2008

  • Because it will take x amount of time for the oil compainies to get the oit that is at that price, then they have to ship it to a refinery, and then refine it, and then ship it to us. Although the price of gas is about what we were paying the last time gas was still this high.
    MarshaB702

    Answer by MarshaB702 at 9:46 PM on Oct. 4, 2008

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