Originally Posted by BigRedChief (Post 16191369)

Gas tumbled briefly below $100 today. It was $130 a barrel just a week ago, right? When gas prices went up a couple of $’s they raises the prices at the pump immediately. The price drops 20%-30% and no one is seeing a drop at the pumps.

Can someone who understands the market explain why the price of a barrel of oil goes up, the local gas station raises the prices despite that same gas has been in then tank for a long time. But when the barrel price drops, it doesn’t drop at the gas pump. Why?

Originally Posted by Donger (Post 16192315)

No, they aren't. At least not the national average.

Originally Posted by Donger (Post 16192786)

Ummm... petroleum jelly.

Originally Posted by BryanBusby (Post 16191915)

Refiners are greedy, too.

Originally Posted by crayzkirk (Post 16191935)

Because they can...

Like when fuel went up after Katrina and airlines started charging higher rates and extra for baggage. Neither of which went down.

The price goes up immediately because they need to buy gasoline to replace what is currently being sold at a higher price. Which I understand however, I have never heard a compelling reason why the opposite is not true.

Other than they just can and do, do it... It's a fixed market with a constant demand, they can pretty much screw us as much as they want because there is no alternative. Asymmetric Price Adjustment. Because there is no competition, it doesn't behave like a normal consumer market. I found data that says it takes about 4 weeks for the price to go up fully and 8 weeks to come back down.

Or for the same reason cable companies will entice new customers with all sorts of promotions yet will force existing customers to call and haggle to get a better deal.

Originally Posted by Donger (Post 16192311)

https://www.chiefsplanet.com/BB//sho...postcount=1206

And the rapid rise in gasoline prices has stopped, at least for now.

Originally Posted by BleedingRed (Post 16192356)

Because of hedging.

Basically Producers and Refiners buy product at agreed price, these contracts are between 1-3 years and margin dictates profits

Originally Posted by BigRedChief (Post 16193304)

I get the greed. That’s our system. Personally since I got my Shaker, I don’t care about gas prices. Whatever they charge, I’ll pay. But there are a lot that do care. going up a dime makes a huge difference, especially independent truckers. They spend all that time away from the families and then they get their profit margins squeezed big time.

Supply and Demand at work. Except prices have dropped 30% in a week but the price here at the local pumps hadn’t declined much. They have laws down here in Florida about jacking up prices after a crisis aka hurricanes. They are serious about enforcement too. Put people in jail, not just fines. Why can’t this apply?

Originally Posted by Bugeater (Post 16193346)

Had to gas up the Camaro today, $4.04 for non-ethanol blend. Go **** yourself Donger.

Originally Posted by Bugeater (Post 16193346)

Had to gas up the Camaro today, $4.04 for non-ethanol blend. Go **** yourself Donger.

Originally Posted by Donger (Post 16193353)

Quite the bargain compared to the national average. Would you prefer to be paying that, **** face?

Originally Posted by penguinz (Post 16193458)

Down $0.10 to $3.69 at the QT by me for 87 octane.