Why is it the price of gas will jump up in huge increments such as .40-.50- or even .80 cents all in one shot but it never drops like that? Gas was $2.88 on Tuesday night and then POW! Like a shot in the gut it's $3.29. Although we've been tricked into thinking $3.29 is still great I just don't get the hike of 41 cents. I remember earlier this year it got down to $2.99 and went straight to $3.80. The price skyrockets and then slowly trickles down by pennies for a while then watch out! It's coming. Seems like it would be easier if the price just stayed the same and stopped moving around. It'd average out. But instead we play the game of hunting for the cheapest place to get gas or waiting out the higher prices. You can fill up and then 5 minutes later the same gas and same amount will be $10.00 more......
Price jumps
- Thread starter Sonic
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And why is diesel not dropping? Still over $4 a gallon at some places here.
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Wish I came even close to the prices you posted. Here in New Yorkistan gas very pricey. Just my opinion but since oil/gas has nothing to do with our GDP since we don't produce anything anymore; there is no big business pressuring gov't to keep cost down. [censored], corn farmers (large corporation farmers, many owned by senators/congressmen) have the opposite push! Big business now feeds off higher prices and gov't keeps adding a lot of different blends and [censored] regulations that it will never be "cheap" the way we know it from yesteryear.
Diesel is tied in with jet fuel and heating oil production. Demand for one increases demand across the board. Also, some states have very high diesel taxes.
However, diesel is more efficient to produce than gasoline. You get more barrels of diesel than gasoline from the same amount of petroleum. So this should be a factor in keeping prices down......???
However, diesel is more efficient to produce than gasoline. You get more barrels of diesel than gasoline from the same amount of petroleum. So this should be a factor in keeping prices down......???
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It went up 20 cents a gallon here overnight yesterday.
Refiners take crude oil and separate it into many different products. The sum of the products has to be greater than the cost of the crude barrel. If gasoline demand drops in the Fall, then there is oversupply and the price drops. It is not unusual for refineries to sell gasoline at break even or a loss. They just have to make it up on the other products by increasing their margin, like diesel, or reduce production.
In the summer time, it flips and they make their money on gasoline.
In the summer time, it flips and they make their money on gasoline.
Refineries and retail don't really make a lot of money for the big oil companies. Their big profit center is exploration and extraction. They operate refineries as a means to sell their crude oil.
JHZR2
Staff member
cant say Ive seen jumps like that ever... But they are fast to increase while slow to decrease.
Originally Posted By: Boomer
You get more barrels of diesel than gasoline from the same amount of petroleum.
I was thinking this sounded wrong so I googled it. The US Energy Information Administration website says you get 19 gallons of gasoline from a 42 gallon barrel but only 10 gallons of deisel.
http://www.eia.gov/tools/faqs/faq.cfm?id=24&t=10
http://www.eia.gov/tools/faqs/faq.cfm?id=327&t=9
You get more barrels of diesel than gasoline from the same amount of petroleum.
I was thinking this sounded wrong so I googled it. The US Energy Information Administration website says you get 19 gallons of gasoline from a 42 gallon barrel but only 10 gallons of deisel.
http://www.eia.gov/tools/faqs/faq.cfm?id=24&t=10
http://www.eia.gov/tools/faqs/faq.cfm?id=327&t=9
Originally Posted By: Sonic
Why is it the price of gas will jump up in huge increments such as .40-.50- or even .80 cents all in one shot but it never drops like that? ...
I price gas at replacement cost, so when it goes up, I generally adjust accordingly.
Likewise when it goes down, although generally not as fast.
Some places ( not many around here ) price it on the cost of what they have in ground, regardless of the replacement cost.
Why is it the price of gas will jump up in huge increments such as .40-.50- or even .80 cents all in one shot but it never drops like that? ...
I price gas at replacement cost, so when it goes up, I generally adjust accordingly.
Likewise when it goes down, although generally not as fast.
Some places ( not many around here ) price it on the cost of what they have in ground, regardless of the replacement cost.
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