So let's see.....crude oil goes down
18% in the last 2 weeks, as does demand. But the price of gas remains (at least in Utah) at around it's peak? You supply/demand nutz, still believe it's supply/demand or crude oil prices that is driving the cost at the fuel pump?
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Perhaps you didn't notice when prices shot up above $4 nationally they were for a time lower than $4 here in Utah. I don't know how to explain that or the current situation. However, to test any economic formula, I get a lot bigger sample size than the state of Utah. |
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Meanwhile, the crude prices you read about are based on speculations and futures. It takes time for that price to go from the pipeline to the refinery to your friendly neighborhood gas station. |
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So......why do gas prices go up faster
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Let me take a stab at your question.
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You really are clueless, aren't you? |
Exute is right for once. I was listening to a broadcast a few days ago about AAA's most recent report that during the period when crude prices fell 15% pump prices only fell 3% nationally. They take the position that while prices eventually come down, station owners will wait a week or so before passing the savings on to the consumer where as they will raise prices immediately when demand or prices increase. It also seems that stations near one another almost invariable refrain from competing with each other, but rather collude so that they all profit.
I think it is a legitimate question to ask whether this is an industry where the market principles that make most things work are actually in operation. It seems like there are many anticompetitive practices being utilized. If this is so, it ought not be. EDIT: Here is the article they were talking about. http://www.nypost.com/seven/08032008...ump_122827.htm |
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