Quote:
Originally Posted by ree-Xi
What I don't understand (and if someone who is clued in can explain) is how the oil companies raise the cost of a barrel of oil. Let's say that two weeks ago, the cost per barrel was $60. It's at $70 today because a storm blew over a rig in the Gulf. Suddenly, Joe Schmo's Gas station raises the cost per gallon from $3.19 to 3.31, although he bought his gasoline at the $60 per barrell cost. How is that justifiable?
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If only... we're closing in on $110/barrel. To attempt to answer your question, there is always a delay in the increase or decrease at the pump because of what you're talking about. But, it looks like you might not realize how quickly gasoline is consumed at gas stations. Most larger gas stations get their gas once a day or once every few days. Gas stations don't make a much of a profit on the gas - they make their money in the convenience store. It's the local government that rakes it in with the tax on gas.
Gas stations also play a balancing game with the price. Too much = consumers go elsewhere. Too little = not enough money to pay for the next day's gas off the truck and the gas runs out...end result, consumers go elsewhere.