Curious Why Gas Prices Aren’t Dropping Faster
I’m wondering now that the price of oil per barrel is down under $80, we only see a few cents lower at the pumps. I’d like to know when the price of gas was down to $2 something a gallon, what was the price per barrel then?? And why don’t we see a lower price at the pumps now?? – Susan, Graniteville
It’s always the same. Gas prices go up like a rocket, and down like molasses, and a lot of people would call that just plain unfair.
AAA announced today that the average price for a gallon of gas in Mass. went down a dime over the past 2 weeks. The average is now about $3.56/gallon. Gas prices have been going down along with the price of oil which is at about $80/barrel.
But wait a minute. Susan asks a great question about the cost of a barrel of oil and the cost of a gallon of gas in the past. I found that the last time oil was $80/barrel was August of last year. And the average price for a gallon of regular was $2.70. That’s 86-cents less than it is right now with oil at the same price!
I realize the oil companies, gas stations, distributors, wholesalers, etc take their time responding when the market goes down, and do the opposite when it goes up…but jeez…give us a break.
Perhaps it’s a tiny bit of consolation to know that energy analysts expect the price of gasoline to go down further if oil prices continue to moderate.
Of course the reason behind the lower prices isn’t really great news. It’s all because of the fear of a worldwide economic downturn, which would result in less demand for oil. Supply and demand. So while it’s great to have a few extra bucks in our pockets after we fill up, in the long run, it could actually hurt.
What do you think is going on here? If you think consumers are getting a raw deal, what do you think should be done about it?