Then there is the old expression -- "gas prices go up like a rocket, and come down like a feather".
Is it the "price of gas, stupid"?
- Thread starter Tsing Tao
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Then there is the old expression -- "gas prices go up like a rocket, and come down like a feather".
yeah I dont see any gasoline seller rushing to adjust prices down just because oil came back down from $130 so fast haha....demand for fuel still strong....capitalist gotta capitalist
It's one of those misunderstandings on how the process works. When the price of oil goes up sharply the oil is miraculously delivered and refined into gasoline, then transported in less than 24 hours, sometimes less that 12 hours, and can actually be refined and delivered in real time. It's a fucking miracle. Now when oil drops sharply, well then, this refining process takes time don't ya know. Days, even weeks can go by before the price is finally reflected at the pump.
Americans waiting in line, car idling for 15 minutes to buy a 5 dollar cup of 50 cents worth of coffee at Star we want your bucks, but the bitch about paying 4 bucks for gas, and half of them fretting about carbon emissions. 
That could be applied to any number of prices (outside of the LME, of course).
It is not really a mystery. Most of the gas stations are owned by mom and pop operators who own only that gas station. Their profits per gallon of gasoline is only very small, a few cents per gallon. That is why they have built convenience stores where the profits are way larger. So, if a gas station, takes delivery of gasoline that costs them $4.00 per gallon for instance, which they sell for $4.10 per gallon, they will not be selling that gasoline for less than $4.00 per gallon until they buy a new shipment for say, $3.50 per gallon, which they now sell for $3.60 a gallon. That could take a while, that is until the gas station is able to dispose of the higher priced gasoline they paid for. Only then, will they buy more gasoline at the much lower prices.
Yep they are no hurry to reduce prices when the time comes. I have always doubted that current retail pricing has anything to do with cost to produce and ship. The retailers use that hysteresis to their benefit.
Inflation down in my corner of the world is noticeable now. I would say groceries are up about 25% for stuff I buy, mostly just proteins and vegetables as I don't eat any processed food or snacks which is where the big increases are. Occasionally my local Publix will be out of a certain item I regularly buy but nothing that looks like a shortage. The next time you are in the store you see that item and just grab 2 or 3.
Fuel is up around $2 from 2 years ago.
I recently had to replace the fuel tanks on my boat (and add a fuel polishing system) so it was bone dry after the work. It cost $336 dollars to fill it. A little sailboat!
I feel bad for anyone with a significant commute to work.