why isnt gas coming down any but oil is?

Answer 1

The fall of the gasoline prices generally do follow the fall of oil prices. However, there can be lots of factors that can affect this ratio. For example, in a barrel of crude different components are create such as Gasoline, Jet Fuel, Heating Oil, Plastic dirivitives, etc. Based on the current market, the allocation of crude can be 'adjusted' to facilitate a higher market price. For example in the Winter time, Heating Fuel Oil may be produced at higher quantities due to demand (higher $ return) and less Gasoline produced. Thus the total available gasoline in the market remains constant keeping the price elevated.

Keep in mind, that just because the price of a barrel of crude drops, this does not necessarily mean that there is more crude available on the market. One can't simply tie the cost of crude to the cost of gasoline with considering ALL the other factors that affect the price.

Hope this helps and good luck!

Oh.. here's something to consider. Keep in mind that the government levies taxes on the price of gas and this tax is a percentaged based tax. Thus the higher the price of gas the more tax the government collects. The same is true through out the process from the well head to the refinery to the gas pump at your local station. This product is taxed more than any other raw material. If you truly wanted to reduce the price of gas to below $2 a gallon, simply have a set amount of tax per gallon/barrel. Remember, the higher the price the more money the government makes. Just some thing else to consider!

Answer 2

you have to ask? well taxes on gas are up and almost by the same amount gas has risen from the last time crude oil was at 60 dollars per barrell. anyway the opec members are selling oil for around 30 dollars per barrell. China is using more and we sit on top of the biggest oilreserve in the world 15 miles off the coast...cannot drill for it but it is leaking into the air would run the US for sixty years but we would pollute the ocean and besides it dont belong to us it belongs to the world and we have no right to it but china does go figure

Answer 3

Because oil and gas is a trillion dollar business and those in power capitalize on the fact that the American people don't really know how the business works. It the biggest game in the business and will continue to be as long a we use oil and our leading fossil fuel. I don't agree with it but we have to live with this fact until we as Americans advance in knowledge of power sources. But even when we arrive, there will be another trillion dollar business ready to capitalize on it.

Answer 4

Oil companies are doing business as usual.

Answer 5

Because Exxon Mobil needs to increase its profits. They only made $10.45 billion in their last quarter. You should understand that is too low and they need more so be prepared to pay even more to help those paupers out.

Answer 6

capitalism

Answer 7

What?Don't know what u r talking about.

Answer 8

beats me