Quote:
Originally Posted by lozen
A key sign of that is when oil collapsed we didnt see gas prices reflect a serious decline. They just kept the profits .The same will happen if Oil hits $60.00 a barrel Gas prices will not reflect that
It takes time for lower crude pricing to be felt at the gas pumps because of all the inventory along the way.
Gas prices rise faster because there's zero loyalty in the gas business. If you're 30 cents less than everyone else in the neighborhood, that guarantees you chew through your tanks faster, but then you're just going to have to fill it up at the higher price. You gain nothing by waiting to raise prices, and you lose those few days of extra profit.
It's not malicious collaboration, it's just sensible pricing strategy.
Once everyone can safely replace their stores at a lower price, now you can start trying to attract business from the guy across the street by lowering your prices.
Does anyone honestly believe there's an Oil Mafia out there controlling the hundreds of thousands of independent gas stations?