Gasoline pump price dips as crude tumbles

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whskyfan
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Gasoline pump price dips as crude tumbles

Post by whskyfan » 07-22-2008 07:22 AM

Why is it that crude oil orices "tumble" and gas and diesel prices "dip"? A 12% drop in crude should translate to a 12% drop in gas and diesel don't you think? Yeah, right... And record profits will again be reported.

Gasoline pump price dips as crude tumbles: government
Mon Jul 21, 2008 6:34pm EDT
By Tom Doggett

WASHINGTON (Reuters) - The decline of more than 12 percent in crude oil prices last week shaved about 1 percent from prices at the pump as consumers paid less for gasoline and diesel fuel, the government said on Monday.

The national price for regular, self-service gasoline declined almost a nickel over the last week to $4.06 a gallon, according to the federal Energy Information Administration's survey of service stations.

The average pump price was still up $1.11 a gallon from a year ago, mirroring crude oil costs that remain far above historical levels.

This fall in fuel costs was due to the $16 per barrel decline in the price of crude oil, or about 12 percent.

Every $1 drop in the price for a barrel of oil results in a 2.4 cent decline in a gallon of gasoline, according to the EIA. If crude oil stays down near $130 a barrel, pump prices are expected to keep falling over the next few weeks, the forecasting agency said.

But the EIA said refiners may not pass all the savings on to the pump and may take a bigger profit from making gasoline with cheaper crude.

In the agency's weekly survey, gasoline was the most expensive on the West Coast at $4.36 a gallon, down 5.2 cents. Los Angeles had the highest big city price at $4.48, down 5.9 cents.

The Gulf Coast states had the lowest regional price at $3.94 a gallon, down 2.9 cents. Houston had the lowest pump price, up a penny at $3.92.

The EIA also reported gasoline prices were down 5.7 cents at $4.46 in San Francisco, down 5 cents at $4.28 in Seattle, down 7.5 cent at $4.23 in Chicago, down 3.3 cents at $4.14 in New York City, down 4.8 cents at $4.13 in Miami, down 1.5 cents at $4 in Denver and down 10.6 cents at $3.92 in Cleveland.

Separately, the average price paid for diesel fuel fell 4.6 cents from last week's record to $4.72 a gallon, but still $1.83 higher from a year ago, the EIA said.

Both the New England and central Atlantic states had the most expensive diesel at $4.87 a gallon each, down 2 and 4.3 cents, respectively. The Midwest had the cheapest fuel at $4.65, down almost a nickel.

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Post by SETIsLady » 07-22-2008 07:40 AM

I was talking to a friend that works in the stock business and he told me to get used to the prices, we will see $10.00 a gallon in the future :( Lets hope thats not the case, but you very rarely see prices go down on anything once they have been raised.

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Post by Cherry Kelly » 07-22-2008 10:36 AM

On Sat July19 -- regular was 3.879 - on Mon July 21 regular was 3.779.

Now if it would only go keep going down...

(I look for fairly stable prices - that is little or no up/down - until Labor Day holiday.)

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Post by Shirleypal » 07-25-2008 02:41 PM

Right now gas is coming down, I filled up cash price today $3.71, also heard on the radio that it should be coming down another $.25 by Labor Day...

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Post by Jon-Marcus » 07-25-2008 02:54 PM

Not meaning to pop anyone's bubble but gas prices never drop below, or to, the "pre-surge" price. Think of it like a staircase. Prices take two steps up, one step down. Might look like it's going down but it ain't. Just keeps going up.

10 bucks a gallon? Nahh. The economy can't handle it.

Sorry, but that's just the way it is.

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Post by Cherry Kelly » 07-26-2008 09:41 AM

on Fri - hubby got gas for lawnmower -- price had dropped to 3.659...

now if it would drop in $$ area of that -- :)

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Post by whskyfan » 07-26-2008 09:50 AM

Jon-Marcus wrote: Not meaning to pop anyone's bubble but gas prices never drop below, or to, the "pre-surge" price. Think of it like a staircase. Prices take two steps up, one step down. Might look like it's going down but it ain't. Just keeps going up.

10 bucks a gallon? Nahh. The economy can't handle it.

Sorry, but that's just the way it is.

Money really is the root of all evil.


That's true. I think it's the psychological thing. They raise the price a dollar and when it drops back 25 cents people are happy that it went down and gladly accept the 75 cent increase.
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Post by Conspiracy Theorist » 07-26-2008 01:32 PM

Gas is still higher in the west. The lowest I've seen so far in Reno is $3.87. My car requires premium, so the lowest I can find here is $4.09.

Gas prices should continue to fall until 11/4, and then should inexplicably rise beginning 11/5.

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Post by Live365 » 07-26-2008 03:29 PM

I agree with Jon-Marcus and Whskyfan. It's a mind game. Jack it up, keep it in the news for three months, then when it starts to "fall" we re-joice. But the new low price is the old high price. The stair case analogy is a good one.

I drive little Suzuki, and what I've been doing is putting $30.00 in the tank at a time (I know that will shock many of you in the big cities, but here in the midwest gas never went over $3.70). It's not a real solution, obviously, as you just run out of gas sooner, but that way you can budget it in.
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Post by Cherry Kelly » 07-27-2008 10:56 AM

Do totally agree that even the few pennies it drops will never get us to pre-hike prices.

Its not the oil, its the refineries (lacks thereof) and the gov'ts at all levels wanting tax monies...

Too bad we didn't get that summer tax removal on gasoline - would almost lay odds that most people do not fully realize just how much they pay at the pump is in 'hidden taxes'. Just drive through any large metro and you can see differences in prices - tax related.

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Post by Conspiracy Theorist » 07-28-2008 04:52 AM

I would not favor a gas tax suspension. I think Federal tax is about .18 per gallon, but someone correct me if I'm wrong.

If you put 10 gallons in your car, the tax suspension won't even save you $2, and with the road infrastructure crumbling, especially bridges, this isn't the time.

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Post by Cherry Kelly » 07-28-2008 09:13 AM

My question would be - follow the $$ trail and ask what they have been doing with the tax dollars on gasoline they have been receiving all these years? You know the tax monies that were suppose to keep roads in proper repair (and bridges).

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Post by HurricaneJoanie » 07-28-2008 08:53 PM

$3.81 today. I filled the tank. Who know what tomorrow holds?
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Post by Shirleypal » 07-28-2008 08:56 PM

HurricaneJoanie wrote: .81 today. I filled the tank. Who know what tomorrow holds?

Still holding at $3.73 cash price here the past week for regular.

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Post by HurricaneJoanie » 07-28-2008 10:01 PM

Shirl, you lucky duck! Ka-ching!

I still feel like we're those frogs in the slowly boiling water -- and now are gloating over a "bargain" of $3.79 a gallon. I remember the first time I saw $3.00 on a station marquee and gasped in disbelief. :(
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