Can someone explain this math!!

[bullroc3]

When gas hit $4.00 a gallon in 2008, oil was at $150 a barrel, or thereabouts.

Now gas is at $3.95 a gallon and oil is (was) around $110 a barrel.

I can't figure that one out.

[CamillaMichael]

It's the "oil company always wins and we always lose" formula.

[nosticks]

Your dollar is not worth as much now as then.

[exav8tr]

I can explain it in one word: GREED!!!!!

[Art-n-Marge]

The first one was only a practice on how to take the customer and they think we are now desensitized. Have you noticed that the instant the price per barrel dropped that there is NO drop in the price of fuel yet?

[Recumbent]

I agree with Art-n-Marge, its like boiling a frog. I also agree with Nosticks as its the devaluing of the dollar. In this now world wide economy when our governments spending habits are ever increasing and the dollar is relatively weaker we get to pay more for less goods and services both personally and as a group ie government. This espically effects most fixed income folks like retired Montana owners. I'll get off my box now and get back to reading the MOC. Garry

[Art-n-Marge]

Wow... not familiar with that analogy - boiling a frog? It sounds cruel, but maybe that's the analogy.

How do you think it is for a retired Montana owner, that still also owns a stickhouse and the mortgage/taxes/maintenance that goes with it? UGH. I would be so much more understanding if the prices were raised and they DID NOT have the huge billions in PROFITS. If they had huge billions in revenue and then low profits, then I'd know the excess dollars went to the cost of doing business and not into their pockets.

[richfaa]

It should take a couple weeks for the drop in oil prices to be reflected at the pump. The oil in the pipeline is still at the higher daily price. There are many reasons the price goes up and down quickly. The best way to understand is to do some home work on the commodities market and how it works. In most cases it is not greed it is good business practice.

If I have 3,000 gallons of 3.00 a gallon fuel in my station tank and the price of oil goes down 30 cents today.Do I Reflect that in my price and take a loss???
If it goes up 30 cents do I see that as a opportunity to make some additional profit to hedge against when it goes down and I must lower my price to stay competitive,

There is much to understand.... my family was in commodities for years(not energy)

[Rancher Will]

The price of Crude oil is only one part of the price of gasoline.From the time the crude is out of the ground until it get to and through the refinery it passes through a number of steps, and usually through a number of companies.
There are costs along the way along with taxes also along the way to finally make up the retail cost.

[CORattler]

Fuel price formula: Raise fuel prices fast + Lower fuel prices slow = BIG PROFITS

[ARJ]

Why, you should know by now-that is how the Government balances the budget!