Oil prices continue to drop (currently $57.00 a barrel), yet the price at the pump continues to steadily increase since it's sharp drop last month. When oil was $60+, it was $1.99 for gas here, yet, now it's $57.00 a barrel, and the price has crept up to between $2.09 and $2.19. Don't gas stations/oil companies realize that the average consumer is not ignorant and that they can no longer get away with saying they "can't control" the prices because the cost of oil overrules that? I know that we have no choice but to continue to buy gas, and yes, the prices are alot lower than they used to be, but that is no excuse, since gas should have NEVER been that high to begin with. This still is not "relief" to me, and I doubt it is to anyone else, especially when we continue to witness gas/oil companies growing profit margins.
2006-10-20 05:10:11 · 7 answers · asked by Yuna 2 in News & Events ➔ Current Events
In response to Kala, makes sense about the elections influencing prices. That just reaffirms my decision to remain neutral in political affairs and not vote. Mankind cannot solve our problems, and yes, I know "our votes make the difference", but no one man is better than the other when it comes to running this country. In the end they are all self-preserving.
2006-10-20 05:30:58 · update #1
The price of gasoline fluctuates for a variety of reasons, including refining, transportation and processing issues. Where I live (Northern Virginia), it goes up and down a little from week to week. However, the general trend has been downward for the past three months. Thankfully! I've seen gasoline for as low as $1.97 in my area but it's mostly around $2.10.
2006-10-20 05:17:45 · answer #1 · answered by svcbench 3 · 3⤊ 0⤋
Gas prices have dropped 58 cents in a month where I live, so I don't know what you're talking about. They have dropped from over $3.00 dollars a gallon across the country. If it is inching up here and there that is nothing more than the market adjusting to realities other than the price of a barrel of crude oil. That price is the factor that contributes most to the price of gas at the pump, but it is not the only variable. Another would be OPECS recent decision to cut back production in an effort to slow and cease the drop in price we have all recently benefited from.
2006-10-20 07:13:51 · answer #2 · answered by caesar x 3 · 0⤊ 1⤋
Besides greed and their recognition that the CAN hold prices high and force people to pay, there is actually a multi-month lag between when oil is bought in the market place by refiners and when it shows up at the pumps, so the gas you are putting into your car is actually one of the refined by-products of the oil a maybe 4-5 months ago that was relatviely "expensive"...now, you could ask then why when oil prices go UP, it is reflected almost immediately at the pump? Well, now we're back to the issue of greed...and the customer's willingness to pay. Good luck - I'm with you, we need to kick this oil dependence thing.
2006-10-20 05:20:46 · answer #3 · answered by amulkerin2002 2 · 3⤊ 0⤋
Oil prices that you see on the market are the prices for delivery of oil in 3-6 months' time. The markets in which oil is bought and sold are called "futures" markets. So, there is a lag between lowering crude oil prices and lower gasoline/diesel prices.
You should consider yourself fortunate. Here in the southern Caribbean where I work, gas is about $3.80/gallon ($1/liter), and in some parts of Europe it is on the high side of $8.00/gallon.
2006-10-20 05:24:22 · answer #4 · answered by sandislandtim 6 · 2⤊ 0⤋
Now, really, do you expect the Oil Companies to give up that 300%+ profits that they're used to having? I would love to see gas under 2$ a gallon, but so far it's only gotten down to 2.19 in Wisconsin. When we have oil men in Washington and oil money buys most of the politicians, that's why gas prices are so high. One of the presidents of an oil compnay retired on a 465 million dollar pension. That's more than the GNP of a small nation and it's obscene. Good luck.
2006-10-20 05:32:54 · answer #5 · answered by Mama Otter 7 · 2⤊ 2⤋
More oil could be shifted to producing heating oil & diesel fuel, so there is less gas. They don't control the price, they sell to the highest bidder. If there is less supply, the price goes up. The price of oil only sets a minimum, about $1.25 for just the oil to make a gallon of gas.
2006-10-20 05:24:12 · answer #6 · answered by Eric 4 · 2⤊ 0⤋
Don't get used to the "relief" either. As soon as the elections are over, I suspect that the prices will climb back up to where they were, if not over, to make it up to the oil companies for giving us a "break". They do that every time there's an election. Apparently, we're all dumb, and none of us realize that it's just a ploy to get our votes.
2006-10-20 05:23:48 · answer #7 · answered by K 3 · 1⤊ 3⤋