Since oil has been close to $100 a barrel, when will gas prices follow?

[Bill]

I don't understand how this works. If oil prices were $60 6-months ago and now the price is close to $100, shouldn't gas prices be $5 a gallon?

How...

[thekl0wn]

When gas prices go over the inflation rate over the past 50 years, I'll become concerned with it. Until then, I'm not too worried, though I do like the sub $3/GL pricing! Sad part is, every vehicle I own is a V8, and so far the gas prices have never hindered my occasional need to do a holeshot... :D

[old_guy]

The price of crude oil is roughly 50% of the cost of gas at the pump. So all other things being equal, which they never are, a 10% rise in crude prices would raise the pump price by 5%. But there are many factors which screw up this nice mathmatical relationship, e.g. inventory levels.

By the way, almost 20% of that pump price goes to the taxman -- enjoy!

[Terry Mac]

O.P.E.C.


(this if for the minimum 10 character post)