Why is it that when the price of oil rises, our gas price also rises immediately?

However, when oil prices are down, it takes WEEKS for it to reflect on our gas prices?





There is something VERY shady about this!Why is it that when the price of oil rises, our gas price also rises immediately?
As oil goes up and down in price, so does gas. This is so the companies that buy gas will not lose money. Even if the gas they sell was not bought at that price. They have to account for the fact that you have to supply gas CONSTANTLY, every day! So to maintain profit they change their prices according to oil prices.Why is it that when the price of oil rises, our gas price also rises immediately?
The gas prices are not really because of supply or demand. It is driven by wall street and the selling of ';futures'; if the oil futures goes up so do gas prices, it goes down they go down. That is why it is immediate. Of course it is harder to get the local guy to lower the prices.... Supply and demand take much longer to be reflected in the marketplace.
Not at all. If you were manufacturing -- let's say ice cream -- would you immediately drop the price of the finished product if the price of milk turned down for a few days? Or do you think you would wait to see if it looked like milk was going to stay at that level or pop back up next week? Or at least until your competition dropped price?
because oil is a substitute of gas,so when the price of oil increases,the price of gas also increases since if not the demand for oil would be high.that is explained by the demand curve of substitute goods.
it is not a overnight thing either way. it will take a few days before you see the price of oil reflected at the pumps either way.
I dunno there is a connection with oil and gas. Like if oil prices rise so would the cost of manufacturing products.
inventory replacement cost is immediate.
I noticed that, too. There just might be something to that.