Tuesday, July 8, 2008

Crude oil prices vs. At the pump cost

What gives? Why is it that when there is an increase in crude oil barrel prices, we see an almost instantaneous rise in at the pump prices? However, when the cost of crude drops significantly, the relief for the consumer takes days even weeks.

A decline in oil prices wouldn't translate into relief at the gas pump for some time. Retail gasoline prices in the U.S. held steady at a record $4.108 a gallon, according to AAA auto club, the Oil Price Information Service and Wright Express. Diesel continued to advance, rising more than half a penny to a record $4.807 a gallon. (Yahoo! News 7/8/08)

I don't think I'll ever understand the thinking behind all of this mess. The consumer always gets stuck in the end. For once, I would love to see a wide spread protest at the pump. A protest where everyone vows to not purchase fuel for 2-3 days or longer if they wish. Of course, I know it would never happen. This is exactly why the interstate system is just as congested on say 4th of July 2008 as it was 3-5 years ago. Gasoline prices just don't have near the effect on keeping people home as they may have in the past, which is exactly why a protest would never happen as well. I hate paying these prices but unfortunately, until the government approves widespread development of alternative fuel sources such as hydrogen fuel cells, which won't happen because their hands are in the oil companies pockets, we will just have to deal.

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