Can Someone Please Explain...?

[lone_star_dsl]

Why the price at the pump would not be falling at the rate that the price of a barrel of oil is falling?

I mean, when oil prices go up, the price is translated immediately to the consumer. But when they come down, a price reduction at the pump doesnt come down nearly as quickly.

To me, I see it as a ratcheting mechanism to keep prices higher. Kind of a two steps forward, one step back deal.

I have tried to keep my mouth shut in the other posts because I honestly dont know much about speculators. Hell, I dont even know what hedging means. All I do know is that fuel prices and a stagnant local economy have just about put me out of business.

If I had the option of running around in a gas sipping car, I would. Unfortunately, being in the excavating business, that is simply not an option.

Sorry if I was ranting. Its been one of those weeks.

[action4478]

Not sure if true or not , I have heard they keep the price up as long as they can ,to recover losses ....

[blakedog]

here in georgia it has gone from 4.89 last week to 4.59 this week

[lone_star_dsl]

Originally Posted by blakedog

here in georgia it has gone from 4.89 last week to 4.59 this week

Here we had a jump from $4.65 to $4.72 and now it is back down to $4.69. All in the last 10 days.

[eagleeye]

Diesel has gone from $4.79 to $4.68 here in east central Illinois in the last 4 days.

[THEBUNDO]

The price may be for futures

[Texrob1]

We went from $4.67 here in the Houston area,to the $4.51 I paid this morning for Diesel.