Why do gas prices not go down when crude oil prices go down?

Posted by admin
oil prices
conker fr3sh asked:


Crude oil has slipped a bit lately, yet gas prices continue to soar across America. Will gas prices ever go down because of the decrease in price or future price of crude oil? Why do gas prices not go down when crude oil prices go down?

Phyllis
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    • This entry was posted on Saturday, December 13th, 2008 at 6:37 am and is filed under oil prices. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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    2 Responses to “Why do gas prices not go down when crude oil prices go down?”

    1. scottsmylie Says:
      December 13th, 2008 at 7:51 pm

      Beacause there is a lot more to Gas production than crude alone. I think gas tends to lag behing crude for about 30 days or so.

    2. BlaQice Says:
      December 17th, 2008 at 6:47 am

      The same reason gas didn’t go up as much when oil surged… And, the same reason mortgage rates haven’t dropped although the Fed has cut rates like Jack the Ripper.
      There are too many other factors like refining margins and other costs.. derivatives… If Oil stays down then gas will eventually drop.