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Offlinesubiedude
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Registered: 02/06/09
Posts: 1,547
Loc: Colorado
Last seen: 3 months, 27 days
Why is the price of gas going up when oil is dropping?
    #11363343 - 11/01/09 05:12 PM (8 years, 8 months ago)

The price of oil is dropping, so wouldn't that mean that gas would fall also? Im no economist, so can someone explain this to me please?:mushroom2:

I'll be pissed if it gets back to $3/gal, let alone $4/gal.:mad2:


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Invisiblenooneman
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Registered: 04/25/09
Posts: 10,192
Loc: Utah
Re: Why is the price of gas going up when oil is dropping? [Re: subiedude]
    #11363400 - 11/01/09 05:22 PM (8 years, 8 months ago)

Gas prices are controlled by many factors, one of which is the price of oil. There are many others, including the value of the US dollar.


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InvisibleDieCommie

Registered: 12/11/03
Posts: 29,258
Re: Why is the price of gas going up when oil is dropping? [Re: subiedude]
    #11363413 - 11/01/09 05:25 PM (8 years, 8 months ago)

There is a time lag for gas to drop when oil drops.  The common phrase is 'up like a rocket, down like a feather'.

Consider if you just bought a lb of weed and were selling it, then the price you pay for a pound drops - your still gonna sell off your first pound at that higher price because you paid more for it.  Then consider that you buy a lb of weed and then the price you have to pay increases.  You know you arnt going to get your next pound for cheap so you immediately raise your prices.  Thats how it works.

Personally I think gas should go up in price, its a shame that it fell so low.  High gas prices fuels innovation towards energy independence and green alternatives.


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Offlinesubiedude
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Registered: 02/06/09
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Re: Why is the price of gas going up when oil is dropping? [Re: DieCommie]
    #11363436 - 11/01/09 05:29 PM (8 years, 8 months ago)

LOL, drug analogies always help things become more clear:rockon:


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InvisibleGrizvok
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Registered: 09/12/08
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Re: Why is the price of gas going up when oil is dropping? [Re: DieCommie]
    #11363465 - 11/01/09 05:34 PM (8 years, 8 months ago)

It also gives record profits to oil corporations who then spend more on lobbying and whatever else they do to make sure oil and gasoline remain the most important energy source in the world. And I'm sure high gasoline does wonders for our economy right? Less purchasing power for the American consumer because they are spending more and more on jacked up fuel prices.

High gasoline price = pretty terrible idea for calling for alternative energy.


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