02 September 2005

Interesting Factoid

Well, crude prices are back down. Now let's see if price at the pump follows suit...


So, as I endured the pain of filling up my gas tank (I drive 70+ miles a day, can't really wait for prices to drop), I thought to myself, as I often have, "Why has gas gone up more than $1.30 in two months? Sheesh, I'd like to see what the crude price trends were and compare it to pump prices - it has to be B.S." Now, believe it or not, I have about a year's worth of data on pump prices - I track my car's fuel effeciency to verify performance. I am a geek. So all I had left to do was get a year's worth of crude prices, and compare, right?

Or, I could take the easy route, and check AAA's fuel price site.

So, here is that comparison, from their site:

As you can see, the National Average tracks pretty closely with crude prices - but when crude spikes, pump prices spike higher, stay high longer, and when crude drops, pump prices take longer to fall off, and do not fall off as much. Economics or swindling? I'll let you draw your own conclusions, as I am not an economist. However, I will say that at least the pump prices bears a resemblance to the crude prices - I didn't give gas companies even that much credit.


At 9/03/2005, Blogger WillyShake said...

What does this say for the much-talked-about shortage of refineries in this country? And also our dependence on foreign oil?

It would seem regarding the first question that the lingering, elevated prices at the pump may in fact reflect that shortage of refineries (added to this is the many concoctions that these refineries must produce to satisfy various local/state environmental regulations.

And to the second question, this also seems to be an issue--otherwise (if we were producing more of our own crude oil), the supply would be greater and the cost would go down, right?

As you say, I'm no economist ... but here's my question: where has the sense of urgency been about this issue? I fear it's been swept aside by political expediencies such as, for example, not wishing to raise hot-button issues like drilling in ANWR. (As if drilling for more oil was a BAD thing!!! *sigh*)

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