Easily explained in the US, but Ireland?
Taxes.
It’s been like that for as long as I can remember. If the price of oil goes up pump prices go up instantly but if they go down it lags by ages.
“The biggest single component of retail gasoline prices is the cost of the raw material used to produce the gasoline – crude oil. Recently, that price has ranged between $50 and $70 per barrel, depending on the type of crude oil purchased. With crude oil at these prices, a standard 42 gallon barrel translates to $1.19 to $1.67 per gallon at the pump. Excise taxes add another 49 cents a gallon on average nationwide.
There are additional costs to refine, transport, and sell gasoline at retail outlets. As of January 2019, crude oil costs accounted for 53 percent of what people are paying at the pump per the U.S. Energy Information Administration. Excise taxes averaged another 17 percent. That leaves 30 percent for the refiners, distributors, and retailers.”
From here:
https://gaspricesexplained.com/#/?section=gasoline-taxes-by-state
Link includes a US map of gas taxes by state (IOW, your results may vary)
1.79 reg gas and 2.23 gallon diesel
I filled up on Saturday. $1.99 a gallon. Down ten cents from two weeks ago
Gotta love MA. Gas is still is about $2.40 most places around me, although I go to a place that is currently $2.15. I consider that a bargain but I guess many other states are seeing significantly better prices.
Still don’t understand how, if the price of oil goes up, the price at the pump increases immediately but if the price of oil drops, it either takes a long time to show a little drop or it doesn’t go down at all.
Other than us being screwed which I do understand and we can’t do a thing about it.
Saw gas for 1.65 per gallon yesterday. I’d say prices have gone way down.
Retailers have to work through their inventory that they paid $X per gallon. Once the inventory that is gone they can charge $Y/gallon. With the assumption price Y < X .
$$$$$$$$$$$$$$$
Because they don't sell Crude Oil at the pump? The price you're looking at on the pump for gasoline, is the cost of Industry, Transportation, Labor and Taxes. We have been paying close to cost for a few years now. Anything under $2/gallon is moving the product along at a loss.
RE-FI YOUR MORTGAGES NOW TOO!!
Last I checked wholesale for a gallon of regular was $.97.
Prices here (Texas) have dropped significantly - 15%, or more. It must be kept in mind that the cost of the raw material, oil, is only a part of the final price. The costs of, transporting it to the refinery, then refining it, and then getting it to the consumer, then the huge TAXES, all are fixed. The raw oil cost is the only thing that has dropped.
Bingo!
It is just like Interest rates are now 0 and look at your Credit Card interest rates.
I have great credit and my interest rate is 17.40% (Prime + 12.65%). WTF?
I am told that is really good, and I am not buying it. That was crap credit in the 1990s with higher interest rates by the Fed.
Good thing is I pay off my credit card every month, and I get cash back for it. So everything goes on it and everything gets paid off, and 0 interest is paid. I only use it for the cash back purchases.
It may also be the depreciation of the dollar.
The Fed is printing (well really typing on a key board) more USD. So we are seeing a depreciation of the dollar. Check out this web site.
https://www.in2013dollars.com/us/inflation/1970?amount=20
Uh. This isn’t hard. Oil and gas are bought on the futures market. Yeah-it does go up immediately (which is how they get you)-but the price of the stuff in the ground at the gas station isn’t what is reflected on the TV. That’s next month’s contracts. However-right now-has futures (RBOB) are through the floor-$.69. That’s down 23%.
Price reductions take a few weeks to reflect at the pump. Speculation of higher price per barrel and the pump prices are jacked up the next morning.