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If the price of oil is now 1/2 of what it was in July (on the news), then why isn't gas 1/2 the price it was in July instead of only about 60 cents cheaper?

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Asked by Sharon7772 at 1:09 PM on Oct. 17, 2008 in Politics & Current Events

Level 4 (36 Credits)
Answers (10)
  • Because they don't want the prices to go down any more then they are now.

    Answer by SAHMinIL at 1:10 PM on Oct. 17, 2008

  • Ours is down by more than 60 cents. it's 2.70 now and still dropping daily. It reached a high of over $4 at one point...

    Answer by MissAlisabeth at 1:11 PM on Oct. 17, 2008

  • We are still paying what the company paid for that gas to be delivered. Just because the price of oil went down we are still having to pay the companies what they paid for the gas so that they don't loose the money. It can take about a week or so before prices drop dramatically.

    Answer by usmc0351wife at 1:11 PM on Oct. 17, 2008

  • I would believe that usmc0351wife if it wasn't for the fact that as soon as the prices go up, it goes up on the pump regardless of the fact that that gas could have been delivered yesterday, and it is the same gas in those tanks that was there that morning before the oil barrel prices jumped!

    As soon as it's jumps it is immediately shown at the pump!.....

    Answer by SAHMinIL at 1:18 PM on Oct. 17, 2008

  • It goes up immediately. It goes down when you buy less or buy at a different station. Supply and demand.

    Answer by LoveMyDog at 1:23 PM on Oct. 17, 2008

  • Gas is still $3.39 a gallon here in North Carolina. I also agree with SAHMinIL, just the threat of a Hurricane in Texas had gas prices at $5 a gallon in some places here, and it hadn't even happened yet!

    Answer by Sharon7772 at 1:25 PM on Oct. 17, 2008

  • The highest gas got here was $3.50; right now it's $2.90; I've heard the lowest it "could" get here is $2.50. (which is only $1 less then highest price). The reason it's gone down is because of the supply and demand. There right now is more oil then needed we aren't using it as much, so that's driving the prices down, but they won't go down much because THEY (the oil companies) don't want them too. 6-7 years ago (when my kids were born gas was $1.60 a gallon: I know because I wrote it in their baby book). We pd $2.50 for gas and there was no change in our habits, so they (the oil companies) know they can get us for that price.....that's why it won't go much lower then it is now.... we will NEVER see $1.60 prices again.

    Answer by SAHMinIL at 1:55 PM on Oct. 17, 2008

  • Our prices have gone down steadily over the last 3 weeks or so. I don't care, I'm just glad it's going down!

    Answer by momma_2_three at 2:12 PM on Oct. 17, 2008

  • Ours is down to $3.30 and it was over $5.40.
    A couple of things to consider:
    There is a time delay: you buy a barrel of oil now and it takes a couple of weeks for it to be processed and end up in a gas tank.
    The price of processing the oil into gas is part of the cost as well. It just doesn't magically turn into gas.
    With the price high, people have been careful about their driving and have stopped buying the incredibly huge, wasteful cars. That will change as the price drops - demand will start to go back up and the price will follow. I've already seen news reports that sales of huge trucks and SUVs are back up - people want the "status" of being able to say they can afford to drive one.

    Answer by kaycee14 at 3:46 PM on Oct. 17, 2008

  • Gas is 2.58 here in kentucky.

    Answer by julianjordan at 9:38 AM on Oct. 26, 2008

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