When crude oil spiked, gasoline prices went through the roof.

[11 Bravo]

Now that oil has tanked, the price at the pump has nose-dived as well, right? No? I'm shocked, I tell you, shocked!

[Selatius]

1. The general argument is winter often sees a higher demand for fuel (i.e. heating oil)

The problem is this has been an unusually warm winter, so the argument is already diminished at the outset. The only way we can guage exactly what is happening is to examine Exxon-Mobil's quarter 4 earnings report for 2006 and their quarter 1 earnings report for 2007. By examining the size and scope of the net profit generated relative to previous periods in previous years (adjusted for inflation) and comparing it market prices for crude oil, we can see if Exxon-Mobil and other companies are artificially charging a higher price than is justified by the market.

[unblock]

2. pump prices are "sticky-up"

station owners only need to look to their own costs to know when to raise prices, so that happens really fast.

when costs go back down, they wait and see what the competition is doing first, so prices are slow on the way down.


that's NOT a justification, just an explanation.

[TheCowsCameHome]

3. They must have thrown away all the lower numbers.

[soothsayer]

4. My gas dove to $1.97 gallon (from $2.27). I figgered it was * trying

to create goodwill for his speech