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Gasoline Prices Fail to Keep Pace with Crude Oil Slide

FROM THE Phoenix Business Journal …

“Gasoline prices fail to keep pace with crude oil slide

Recession fears have sunk crude oil prices to $87 per barrel. But retail gasoline prices have not yet dropped to the same level as the last time oil traded in that range.

The last time oil sold for $87-per-barrel was October 2007, according to the U.S. Department of Energy. But current gas prices nationally and in Phoenix remain more than 60 cents higher than last October.

The national average stands at $3.40 per gallon, well above October 2007’s $2.77, according to AAA. Phoenix-area average prices stand at $3.27 per gallon compared to $2.65 a year ago. Current prices, however, are down from summer highs of more than $4 per gallon. Oil prices are well off record highs this summer of $147 per barrel.”

I am shocked that gas prices at the pumps have not fallen as rapidly as the price of crude oil on the exchanges! Shocked!

Oh wait, I’m older than 3-years old …

Who did not see this coming?

When you ask the oil companies to explain why a retail gallon of gas goes up when crude goes up, they are eloquent and detailed but in reverse, it’s pretty much, “humamamamamamama.”

And as the article notes, at $87 per barrel last year, gas at the pumps was $2.65 … who here is paying $2.65 a gallon?

Of course, this morning, it’s at $79 a barrel so about $2.45 a gallon? Anyone paying $2.45?

Really, you don’t say.

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11 October 2008 Uncategorized 2 Comments


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