Why do gas prices skyrocket overnight, but take weeks to come down?

I can't find any data on this question. I admit I really have not looked too hard.

Anyone got an answer for me???

My unscientific and laymems opinion is that this gas stuff is a bunch of BS 100%.

I think this whole thing is actually a long term scam as much as anything....

you see if you raise the price 250%-300% over time, freak people out enough

psychologically the Oil companies have set the stage for sustained long term profits...


You see when gas prices go down the public will be happy right?


Well these crooks can cut 12-15% off the high prices of today, be heros and laugh
all the way to the bank!

When gas prices "NORMALIZE" the price will in fact still be a huge bump in profits
for them in the long run. Having raised their commodity $2.00 PG,, In six years.

The people will be happy to save the 40 cents, but will fail to recognize that the price is still way over priced in comparison to 6-7 years back...

The reality is that nothing will have changed, just the perceptions of what gas is worth.

Production, refining and transport will still costs about about the same for the companies....

Anyways I know that was not your question but....

I also think the prices of gas will continue to drop because of elections---
unfortunately one party tends to assist this effort on behalf of the gas prices,,,
high gas prices might hurt the whole party...

Just my opinion...

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www.abovetopsecret.com...&addstar=1&on=4712956#pid4712956

Ya what he said..

My thought is they like the 12.2 bil in euroes they are raking in cause of the high gas prices.

i can.t answer this question sorry
but i know that it is the same in my part of the world
especially when school vacations are just around the corner they put it up high high high

guess it is disdainful mammon which is ruling!g
getting the most out of us now!

edit:
and the companies tend to make us belive that it is the goverment bringin the prices up coz of energy tax
and if they rise them and then lower them a bit, people relief coz they are not that high anymore but still they pay more than at the beginning of the year


aren.t there alternatvies?



[edit on 30-7-2008 by orange-light]

This thread is easy to answer: it's about selfish greed. On the part of the oil companies that rake in the profits but also on the part of the states that rake in the taxes. There is no real incentive to bring the price down, the oil companies are in it for themselves and will take whatever they can and the state is not really representative as it should be and will take whatever it can too. Remember most modern states don't control their own currency so they are just as screwed as a big corporation if they don't have cashflow.

It's one huge societal screw up. We have people who should not be getting rich making money on a commodity we should not be burning.

reply to post by mental modulator


Hey MM, great reply!

I did some digging on this and found what we need on, of all places, MSN.com.

I'm just going to paste the article.

Oil prices have dropped to about $125 a barrel this week after reaching a peak of $147.27 earlier this month. Meanwhile, gas prices are still hovering around the $4 mark, down just a few cents from an all-time record average of $4.11 two weeks ago. Why does it seem like gas prices go up faster than they come down?

Because they do. Analyses of gasoline economics show that when the price of oil rises, it takes up to four weeks for gas station prices to catch up, with most of the increase taking place within the first two weeks. But when oil prices sink, it takes up to eight weeks for the savings to be passed along to consumers. The phenomenon is known as "asymmetric price adjustment" (PDF) or, more informally, "rockets and feathers."

A busy gas retailer will take delivery on a daily basis, so there's some pressure to pass along price hikes without too much delay. The stations can't raise prices too much, though, because consumers tend to be extra-vigilant about shopping for bargains when oil prices are on the rise. When the newspapers start reporting upwardly mobile barrel prices, drivers tend to comparison shop down to the penny. This keeps gas prices from rocketing even further.
The asymmetry that economists cite comes into play as soon as oil prices start to deflate. Freed from the constant reminders about rising fuel costs, drivers become less invested in looking for a bargain—and retailers don't have to worry as much about the competition. As a result, station owners can keep drivers happy by knocking just a few cents off the "old" price.

I guess that takes care of it.

Same with mortgages really. I'm not just referring to the current situation, but I remember my parents grumbling about this when I was well young. It's a cartel excuse to make profit on the sly.

Simple, gut-feeling reply:

It's a huge cash cow and they are milking it as long as they can.