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
From Cincygasprices.com: Cincinnati Gas Price Chart
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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.