Quote:
Originally Posted by preciousjeni
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.
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Actually, this isn't quite true. Per gallon prices are figured out using a complicated method that uses the estimated price per barrel that will be in two weeks- the time it takes to turn crude into gasoline. (Per my friend who is a regional manager for a chain of gas stations.)