So when does the 20% drop at the gas pump kick in?
Prices have already dropped about 10% from the peak in Dallas.
“So when does the 20% drop at the gas pump kick in?”
It’s interesting how that works. When the price of crude goes up, the price at the pump goes up instantly.
When it goes down, first the station owner has to sell the higher priced gas that he already bought and is in his tank. Then the cheaper crude has to make it through the production system to the station owner. Takes weeks.
But, it’s just an opportunity for a station owner to catch a break, and most of those guys aren’t getting rich. As the product price comes down, competition will take care of the rest.
“So when does the 20% drop at the gas pump kick in?”
Not 20% but it is a start. Two fill ups ago I paid 2.39. Last night it was 2.15 at the same station. There is no doubt that it goes up faster than it goes down.
Gas prices today here were at $3.78 (from 4.05). That’s a bout a 10% drop.
Of course, they didn’t go up 250% when oil went from 60 to 145 either.