Why Oil Prices Fall Faster Than Gas Prices?
Why is it that Gas Prices take longer to come down than Oil Prices?
The reality is you buy crude oil it takes time to get to you then you process it and then distribute it. So if today I pay 150 a barrel the lag time would be weeks before the first pump would see it. Same as when the price falls.
Strange how it does not work that way in the real world.
International Level: Senior Politician / Political Participation: 188 18.8%
Oil will always fall quicker than gas because they want to recoup some of the profits they lost when oil prices were going up. Plus they want to keep their profit margin in the high three figure range so they can look good to the stock holders. It is their way of campaigning to keep their jobs.
I agree with what krakyn said. The oil suppliers already paid a certain price for the oil so when that stock finishes then they can adjust the price and it trickles down into gas prices.
International Level: New Activist / Political Participation: 18 1.8%
I think the same reason they let it go down slowly greed! They are just out to maximize their profit. The reality is it should go up and down basically at the same rate unless consumption patterns are different.
International Level: Senior Politician / Political Participation: 188 18.8%