Why is price of gas falling? If price of barrel of crude is 15% down how can the end product be cheaper by 33%

Question

To my understanding, the more you make the cheaper you can sell. Somehow, the utilities and fuel prices are not part of that rule. I would assume that if barrel of crude is cheaper by 15%, it would be illogical for the end product to be cheaper by 33% or more.Same with a gas or electric power. Why is that?
I do not get it.
Furthermore, if you make a larger quantity, you can give your customers bigger discount. Why is that not true for utilities or gas companies?
Something is not right here or am I just ...

Answer 1

Here in California gas has dropped from about $3.50/gal to about $2.60/gal over the last few weeks. For months the oil company executives said the price was set by the market, not by themselves. However here in California there is a proposition on the upcoming November ballot to tax oil removed from California reserves and it seems an absolutely astonishing coincidence that the price would drop so much just before the election. I think the oil companies have abused consumers and abused the market system enough that they have made nationalization necessary. I think their assets should be siezed under the RICO anti racketeering statutes, and the executives should go to prison. Just my opinion, but I'd love to see it happen.