Gasoline pump price dips as crude tumbles
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Gasoline pump price dips as crude tumbles
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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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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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.
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.
"You have forgotten the face of your father." Roland Deschain
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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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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.
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.
Did you ever stop to think, and then forget to start again?
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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.
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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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.
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.
It's either real or it's a dream, There's nothing that is in between. ~ Jeff Lynne