Oil Prices Drop, Experts Don’t Expect Gas Prices To Follow

By Jim Armstrong, WBZ-TV

BROOKLINE (CBS) – Oil prices may have taken their biggest one-day tumble since April, 2009 but that won’t translate into lower gas prices at the pump, at least not immediately.

That’s something that frustrates a lot of drivers who notice that gas prices seem to jump the very day crude oil prices increase, but it doesn’t work the other way around.

WBZ-TV’s Jim Armstrong reports

“The numbers on my price sign are controlled by the oil companies and suppliers,” explained Elias Audy, owner of the Mobil station on Route 9 in Brookline.

“They decide what to charge in what area.”

Audy says his customers look at him, “like we’re jerks, with disbelief,” he said, when he tries to explain how little control he has over his prices.

The oil companies and the wholesale suppliers, Elias said, leave him little wiggle room, and diminishing profits.

As for when motorists might see some of the benefit from today’s lower crude prices, Elias isn’t hopeful. He agrees that oil suppliers are much faster to take advantage of price increases than they are to acknowledge decreases.

“If it goes up 10% they will jack it up 10%,” he said. “But if it goes down 10%, we’re not seeing that.”

Business analyst Peter Cohan says that behavior is to be expected.

“The price of gasoline will remain high even after the price of oil drops,” said Cohan, who also teaches at Babson.

“This is the industry’s way of milking the last drops of profit from an oil price spike.”

  • Angela Newman

    because they are all GREEDY!!! They have to squeeze every penny out of the American people!!

  • 1608

    Oil was $113.+ Tues. As of 10pm today $100.+. Why can’t we at least get a .25 drop?

    • your momma

      Because the Illuminai and greedy SOB’s want you to be broke and broke-backed slaves

  • mike

    agree angela !!! just total BS

  • gus P

    OIl companies seem to be laughing all the way to the bank, What we need to do, is pick an oil company and boycott it for a week at a time. Maybe we could do a little squeezing ourselves and remind them its nothing personal its just the way we are starting to do business

  • jd

    get rid of oil speculators

  • Check it out

    Im not sure if this is a recent photo of the gas prices, but Im almost sure gas staions cant charge one price for cash or credit i thought something was passed not too long ago in mass. Anyone else?

  • Junior

    Two things. the 9/10 is one cent that I wish I had in my pocket for every gallon sold. The other is the taxes collected is the main reason the state and federal goverment won’t step in . They are racking in billions.

    • Chris

      Actually. The gas tax is not a percentage, it’s a static amount. So when gas goes up, the government still gets the same X cents per gallon no matter the price.

  • Tom

    the governmert gets hurt when oil prices go up as they are a flat fee per gallon…not a percentage of the price. When we get up to $4/gal, people buy less overall so they don’t collect as much.

  • BOB

    We our being robbed!!! Were is the outrage???

  • Lynn

    I have heard people say they have paid more per gallon for using their card versus cash payment. I have not seen it. But I trust thsi person that said it happened to them.

  • http://boston.cbslocal.com/2011/05/06/gas-prices-officially-hit-4-mark-in-boston-area/ Gas Prices Officially Hit $4 Mark In Boston Area « CBS Boston

    […] Oil Prices Drop, Will Gas Prices Follow? Print Share […]

  • response

    gas stations in ma can charge more for a credit purchase than a gas purchase.
    It is not illegal.
    I would like to see Martha C’s office investigate some of these stations that increase gas prices in the am and then again in the pm….same gas…the station paid one price for the fuel but continually raise prices during the day.

  • emom

    gas and oil companies made a HUGE PROFIT this year and they will continue to gain a HUGE PROFIT… I will not go to the BRAND name stations because they are always at least 10 cents more a gallon…. I will continue to go to the competion down the street,,, FOREVER… since THEY BRAGGED about their PROFITS I drive right on by,,,,,,, wont even purchase any of there other products…. they are extremely greedy ….. wont even use their air for my tires it cost 75 cents and you only get two tires worth MAYBE…. I am a bargain hunter and they are not a bargain at all……

  • Ron amon

    The goernment makes more than any oil company!!! Fair tax

  • Imblack Yomamma

    total friggin scam!!!!!!!!! but guess what? no one cares except the common people

  • andy

    that s why they make billions in profit

  • http://aflashnews.co.cc/2011/05/oil-prices-in-dramatic-slump.html Oil prices in dramatic slump | Flash News

    […] Read more on CBS Boston […]

  • CEO

    Gee, isn’t Obama doing a great job? Gas was $1.69 a gallon when he took office, now it’s over $4. And whatever happened to that promise to keep unemployment under 8%? It’s 9% today…..and still a long way from the 4.5-5% it was when Bush was in office.

    • Catherine

      This isn’t about President Obama. It’s about the oil companies and the fact that the American people refuse to take a stand on anything. It’s much easier just to complain on facebook and other online sites than to actually take action.

  • emom

    What I dont get is the oil price is back up all because unemployment is up,, SOmeone please explain the logic in that reasoning… Oh and for obama the so called wonderful president,, YEAH …… NO….. just a bunch of lie’s liar liar pants on fire….. NO I AM NOT PUTTING OUT THAT FIRE,, SICK OF BEING SCR*WED BY THE GOVERNMENT……….

  • http://botd.wordpress.com/2011/05/07/top-posts-1832/ Top Posts — WordPress.com

    […] Oil Prices Drop, Experts Don’t Expect Gas Prices To Follow BROOKLINE (CBS) – Oil prices may have taken their biggest one-day tumble since April, 2009 but that won’t translate […] […]

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