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turtle777 · Oct 10, 2008, 04:03 PM

Can someone explain ?

Does it just take time ?
Any other conspiracy theories ?

-t

Rumor · Oct 10, 2008, 04:08 PM

I have always found it interesting as well. Crude goes up, gas goes up. Crude goes down, gas might go down, but not a lot.

stevesnj · Oct 10, 2008, 04:31 PM

The biggest scam is Diesel...it takes less refining, detergents,additives, to produce than petrol...so why is it more than petrol?

Rumor · Oct 10, 2008, 04:37 PM

Originally Posted by stevesnj

The biggest scam is Diesel...it takes less refining, detergents,additives, to produce than petrol...so why is it more than petrol?

Someone once told me that diesel follows the price of crude quicker than gas. Not sure if that is true or not.

macintologist · Oct 10, 2008, 04:37 PM

A bigger scam is the fact that the leading oil producers manipulate prices by controlling their oil output. This is called collusion.

Uncle Skeleton · Oct 10, 2008, 04:43 PM

Originally Posted by macintologist

A bigger scam is the fact that the leading oil producers manipulate prices by controlling their oil output. This is called collusion.

Wouldn't the libertarian position be that sellers can ask whatever price they want? Or are you not a staunch libertarian anymore (or am I misremembering who you are)? Just curious, what do you propose should be done about it?

Dakar V · Oct 10, 2008, 04:46 PM

I love 9/15. It went up in spite of a huge crude drop.

smacintush · Oct 10, 2008, 04:58 PM

It's supply and demand. I like to think of it like this: prices are generally pushed rather than pulled. When the costs of producing something go up the price HAS to go up. If the market doesn't support the new price, you either come up with a way to reduce your costs in other ways or you fail. This DOES happen sometimes. With gas it hasn't. Anyway, the cost of oil PUSHED UP the cost of gas.

When the cost of oil goes down that doesn't mean that the price of gas should automatically go down. The lowering of oil prices doesn't PULL down the price of gas. Prices of products just don't work that way. They have to be pushed down by demand. I like use the word push because demand comes from OUTSIDE of the process of production.

So if gas is higher than the oil price would seem to dictate, it's really very simple. It's because they can, because people are still buying gas at rate that supports that price.

smacintush · Oct 10, 2008, 05:02 PM

Originally Posted by macintologist

A bigger scam is the fact that the leading oil producers manipulate prices by controlling their oil output. This is called collusion.

You need to look up collusion. This ain't it.

Why shouldn't a company be able to produce any amount of their product that they wish to?

smacintush · Oct 10, 2008, 05:06 PM

Originally Posted by Uncle Skeleton

Wouldn't the libertarian position be that sellers can ask whatever price they want?

They should and they do. If people didn't have a problem paying $10.00 per gallon then that is what the price would be.

Chuckit · Oct 10, 2008, 05:09 PM

Originally Posted by smacintush

You need to look up collusion. This ain't it.

Why shouldn't a company be able to produce any amount of their product that they wish to?

I'd think an entire industry artificially limiting their supplies to drive up prices is collusion. In fact, it's a stronger example of collusion than Standard Oil was when Roosevelt took up the mantle of Trust-Buster.

Shaddim · Oct 10, 2008, 05:36 PM

I paid 2.98 for premium this morning.

Chuckit · Oct 10, 2008, 05:45 PM

Originally Posted by Shaddim

I paid 2.98 for premium this morning.

And…?

Shaddim · Oct 10, 2008, 06:00 PM

Originally Posted by Chuckit

And…?

and what?

I'm pointing out that gas prices are following oil prices.

sek929 · Oct 10, 2008, 06:25 PM

Yeah same here, got gas yesterday at 2.99 for regular, seems to me that gas prices are following the drop in crude.

Chuckit · Oct 10, 2008, 06:28 PM

Originally Posted by Shaddim

and what?

I'm pointing out that gas prices are following oil prices.

Stating a price out of context shows nothing. You'd have to compare it to previous gas prices for it to show that the pricing drop is actually following the price of oil rather than, for example, oil went down $60 and gas went down $0.01.

TheWOAT · Oct 10, 2008, 06:28 PM

most stations here are around 3.46 for regular... They sure as hell are taking their time dropping the prices.

Shaddim · Oct 10, 2008, 06:29 PM

Originally Posted by Chuckit

Stating a price out of context shows nothing. You'd have to compare it to previous gas prices for it to show anything. If your gas is closely following oil prices, that would mean it was about $4.40 last month. Is that the case?

It was 4.97 at one point last month.

Eug · Oct 10, 2008, 08:24 PM

My local gas prices are gonna drop several % at midnight tonite.

Today 107.581
Yesterday 105.416
One Week Ago 110.926
One Month Ago 122.149
One Year Ago 100.328

turtle777 · Oct 10, 2008, 11:32 PM

Still around $ 3.20-3.40 around here.

WTF is New England (sek929) cheaper than Indiana ?
That doesn't make a damn sense...

-t

turtle777 · Oct 10, 2008, 11:36 PM

Wow

http://www.indianagasprices.com/pric...750&ft=A&tl=48

-t

torsoboy · Oct 11, 2008, 12:21 AM

Originally Posted by turtle777

Wow

http://www.indianagasprices.com/pric...750&ft=A&tl=48

-t

That's an interesting map. Is Oklahoma a big oil state or something? They have the lowest prices in the country for some reason. I would have thought Texas.

Shaddim · Oct 11, 2008, 12:35 AM

OK probably has the lowest state taxes on gas.

Railroader · Oct 11, 2008, 01:16 AM

Originally Posted by turtle777

Still around $ 3.20-3.40 around here.

WTF is New England (sek929) cheaper than Indiana ?
That doesn't make a damn sense...

-t

Where in IN are you?!?! In Indianapolis, it was $2.719 at a Speedway tonight. With the Rewards card, $2.669

macintologist · Oct 11, 2008, 02:25 AM

Originally Posted by Uncle Skeleton

Wouldn't the libertarian position be that sellers can ask whatever price they want? Or are you not a staunch libertarian anymore (or am I misremembering who you are)? Just curious, what do you propose should be done about it?

The problem is monopolies and collusion are impossible without the force of government.

turtle777 · Oct 11, 2008, 10:10 AM

Originally Posted by Railroader

Where in IN are you?!?! In Indianapolis, it was $2.719 at a Speedway tonight. With the Rewards card, $2.669

South Bend / Elkhart.

Prices still above $ 3.20 here. For some reason (see map), Indy seems to have lower prices.

-t

Chongo · Oct 11, 2008, 12:08 PM

Neal Cavuto pointed out when oil went from $50 to $150 a barrel, gas did not follow from $2 to $6 a gallon.
As far as diesel is concerned:supply and demand. I remember when diesel was 20 to 30 cents LESS expensive than 87 octane gas in the 70's and early 80's. What happened is the automakers started building more consumer diesel cars and trucks and the selling point was that diesel was cheaper, and gets better mileage.

NYK Ace · Oct 11, 2008, 01:12 PM

about $3.50 here for regular... it was $3.60 last week so i guess something is better than nothing

mduell · Oct 11, 2008, 01:13 PM

The price of a gallon of gas includes taxes; this results in the change in price being damped compared to crude.
The cost/value that refiners add to the price at the pump isn't constant; when crude prices were sky high many were running at a loss.

turtle777 · Oct 11, 2008, 01:26 PM

Also, there's probably some hedging on the part of the refiners, which would explain why gas prices are smoothed out.

-t

Dakar V · Oct 13, 2008, 10:48 AM

Gas around here this morning down to $2.99, down from $3.13 friday.

stupendousman · Oct 13, 2008, 11:51 AM

Originally Posted by Shaddim

It was 4.97 at one point last month.

It's about 2.90 here now.

Just 3 months back we were told that a significant increase in production by the US would have absolutely no effect on the price of gas and that we were looking $4.00 a gallon for the indefinite future.

$2.00 reduction in the price later, how much of an increase in supply or decrease in demand has their been? How much do you want to bet it's not any more than the amount we'd produce if we drilled offshore and in Alaska? I think this sort of proves how insane the resistance to drilling is, based on what some "expert" claims will happen to prices.

Originally Posted by Chongo

Neal Cavuto pointed out when oil went from $50 to $150 a barrel, gas did not follow from $2 to $6 a gallon.

Excellent point. A lot of gas stations are also convenience stores. If they jack the prices up, demand will decrease and they'll lose out not only on gas sales but also the profits from the other items they sell. They are more likely to reduce any profit they get on the gas to keep people coming in when it's at all time highs, than to lower it too fast when the price goes down and people still think they are getting a deal.

olePigeon · Oct 13, 2008, 11:57 AM

$3.59 in San Jose, probably higher in San Francisco.

Railroader · Oct 13, 2008, 01:32 PM

Saw gas at $2.65 yesterday.

Big Mac · Oct 13, 2008, 01:41 PM

Refiners hold down price increases on the way up and resist price decreases on the way down, but the general trend of gas prices is still connected to the general trend of oil.

Laminar · Oct 13, 2008, 01:46 PM

I saw E85 for $1.70 yesterday, I filled up with 93 Octane premium for $2.94.