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Gas prices in Cincinnati not in sync with price of oil

I noticed that gas prices rose by nearly 25 cents yesterday.  This when the price of oil has dropped to $103 dollars a barrel, a 30% drop since its high in July.  Price for gasoline today at $3.77 represents only an 8% drop since the July high of $4.08/gallon.  If you look at the 1 year charts for gas in Cincinnati and the price of oil, they mirror each other pretty closely until the price starts to drop.  A corresponding drop in gas prices of 30% would make gas around $2.86/gallon.  They’re always quick to raise prices, but slow to decrease prices.

I don’t think we’ll ever see gasoline below $3.00/gallon again unless the government gets involved.  I think that the oil companies are happy that we’re now conditioned to accept +$3.00/gallon gasoline.  Why lower prices when we are happy when we see “cheap gas” at $3.25/gallon.  It’s all relative, but we’ve gotten used to higher gas prices.

Crude Oil Price Chart
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From Cincygasprices.com: Cincinnati Gas Price Chart
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1 Comment

  • Reply cinplify.com September 10, 2008 at 10:45 am

    Gas prices in Cincinnati not in sync with price of oil

    Gas prices in Cincinnati have stayed high even the price of oil has dropped 30%. A corresponding drop in gas prices would make gas around $2.86/gallon.

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