I thought the price of oil determines gas prices?

Is there some equation, besides supply and demand, that I'm missing? That's the general, blanket comment I always hear, "well on today's markets the price of oil is $67 a barrel" then I'll hear, "price of oil today is $60 a barrel" yet gas prices increase. I just feel like it's something other than oil prices and supply and demand.

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TrashCat · M

Supply and demand is one thing. However I believe it comes down to plane old greed. For example; a different price for cash vs credit, near me gas stations near each other often have the same price, but the very same brand with no stations near them will charge more (or less). I was told by a gas station/convenience store-owner that it is also based on the deliver distance to fill their tanks and they pass it off to the consumer.

twiigss · M

@TrashCat Really?? That's very interesting to know. Thanks.

TrashCat · M

@twiigss Of course, they might be lying 😃

twiigss · M

@TrashCat With everything that goes on, it really wouldn't surprise me if that is the case.