The oil companies know when Labor Day is, and that people will travel then. Therefore the price will increase sharply by then. The price of gasoline has nothing to do with the price of crude oil, it's based on what the market will currently bear.

As Heating oil purchasers already know.

Hi,
So the prices we are experiencing have nothing to do with the price of oil dropping from around $100/barrel to around $40/barrel. Bull! If you believe that then I've got a bridge to sell you.

The price of gas is mildly connected to the price of oil. However, remember that the oil has to be refined and that the companies that do this set the price of gas. They'll use any excuse to raise gas prices.

Supply and demand are also at work.

With so many countries selling crude, the price is going to drop for gasoline as well as the other products that come from crude oil.

Hi,

I agree that the refineries will set the wholesale price of gas. Bump it whenever the oil price changes. Gas demands can cause the fluctuations for when the availability of gas is lowered by the reduction in gas production.

What bothers me is the price of the delivered gas in the tanks will reflect the wholesale price. How can the gas that is delivered already change in price once in the ground tanks? To me that should be illegal!

I do not see the price increase for already produced commodities in a store change when the source supply increases for that product. Price may increase before it is delivered or placed in the store.

The reseller has to turn enough profit to buy the next tank. How else would that work?

I used to work in the oil patch. I've seen oil companies just cap productive wells just because they didn't want to sell crude then. The current price of crude oil has some, but very little, impact on the price of gasoline. It's used as an excuse, but it's not the real motivator. Oil companies make such huge profits they can sell gasoline for whatever they like and still not be hurt. Most of the price of a gallon of gasoline is taxes anyway. Swings in gas prices are just market manipulation by big operators.

1 liter of Super Benzin costs 1.38 EURO in germany at the moment. Thats very cheap compared to last year where it was 1.80 EURO

Hi,

Now that the Indiana refinery is back on line, we are seeing price decreases. Typical $2.38 to $2.43. A drop of $0.50/gal. It does look like the prices will continue to fall.

I just filled my cars at $1.989/gallon. I expect the price to go up just before Labor Day, but perhaps the rise will be only temporary. The price always goes up for major holidays.