Why is gas per gallon up 40% when cost per barrel only up 14%?

Question

I live in southern California and have noted that in the last few weeks gas has gone from $2.45 per gallon to $3.45 per gallon (premium), while the price-per-barrel has gone from approximately $50, up to over $63 (I believe), and back down to $57. The petroleum companies are quick to increase the price of their gas when the cost goes up, but are slow to reduce the price when their cost goes down.
The petroleum companies made record profits in 2005 and 2006.
The petroleum companies do not really compete with each other (there are different companies that are fighting for your dollar, but as of yet, no company has made a move that would cause customers to prefer them, i.e.: reduce prices drastically in ALL franchises/outlets. In light of the profits, I believe there is pricing cooperation occurring between companies.
Here's the question:
At what point does government involvement become necessary to ensure that some sort of price control in relation to the production cost of gas?

Answer 1

sounds like someone wants a new ferarri & a new in ground pool

Answer 2

Because OPEC sets the price for the industry, regardless of member status. If you're wondering, it stands for
Organization of
Petroleum
Exporting
Countries
or as I like to call it:
Over
Pricing
Every
Container

And price regulation only puts people out of jobs. If the government freezes prices on any commodity, the company will still make profits by cutting other costs, like healthcare contributions, jobs, pensions, 401k matching, etc. That's why there's no such thing as a tax code as far as corporations are concerned. They'll always find a way to make their money at the expense of their employees, which is why I always support lower corporate taxes.

Answer 3

I think you answered your own question. The oil companies want to make money so they are reeming us for the money. Don't worry though. One day it will come back to bite them in the butt.

Answer 4

Refineries are switching to the summer blend of Gasoline,