Price of oil vs Gasoline?

Has anyone noticed that oil prices have dropped 17% since the beginning of the year but here in Florida the prices have risen $.30 a gallon. Are you seeing higher prices at the pump since the first of the year also?





Like the oil companies say, the market at work.Price of oil vs Gasoline?
The gas you put in your car has been refined by oil refineries in this country. The oil refineries import the crude petroleum, then use chemical processes to create oil (and a lot of other things like diesel, natural gas, etc). So when the price of crude petroleum drops, it means that the oil refineries can now produce gasoline cheaper.





So why has it actually risen recently? The reason is this. There has been a lot of industrial consolidation of refineries in the US over the past several years. There weren't that many refineries to begin with, and now, they are owned by fewer companies. So they have greater power to determine price the gas products. As the price of crude dropped, they saw an opportunity to increase their profits by raising the price of gas.





Last quarter when the demand for gas was dropping, the refineries actually took a hit. The recent price increase is their attempt to get back a little to lowering supply and increasing their prices and their profit margins. But if prices for petroleum remain low as they are right now, the price you see at the pump should actually fall again.Price of oil vs Gasoline?
In the past, prices rose in winter due to higher demand, especially for heating.





Of course, in the summer, prices rise due to everyone driving on holiday! Lots of excuses here....





When prices rise, they say it is because the wholesale price at the refinery goes up. However, when the crude prices drop, they say it takes 3 months for that crude to make it to market, so prices will only drop after 3 months.





There are a lot of excuses, but basically, they will charge whatever the market will bear. Prices here (Ottawa, Ontario) hit $1.40 per litre last summer, but people were buying less and less. Around Christmas, the prices had dropped to $.62. This morning, we are back up to $.75. This was despite the drop in crude prices. Yet, we are still buying gas.





I was up in Dawson City, Yukon over Christmas. Prices there were $1.36 per litre. For you Americans, this works out to about US$6.50 per US gallon. If they have had a similar increase as here, their price will now be be around $7.00 per gallon, so maybe we should not complain so much!
oil prices don't change too often, but gas prices can change overnight and have always been after oil prices change. I think we are all getting screwed at the pump even with gas just above 2 dollars(Chicago). Just wait, it'll be back to 4 bucks a gallon by summer. That's why this country really has to get off of oil.
yes, I have a ford explore and 3 weeks ago i used fill my thank with less than $30, now i fill it with $35. i think they should do something about it because its not only in florida; I was in new york a week ago and the gas was at the same price or even higher

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