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Author	Topic: Why gasoline prices rocket up, yet drop slowly	Post a Reply Back to Topics

greshams Champion Author Cincinnati Posts:2,005 Points:375,520 Joined:Nov 2011	Message Posted: Aug 1, 2012 11:18:15 PM Ignore greshams Report Abuse WASHINGTON – It's a common complaint among drivers: Gas prices shoot up quickly but take their time floating down. The phenomenon is called "rockets and feathers," and industry analysts say it has been at work for a long time. Gasoline retail prices rise four times faster than they fall after the wholesale price changes, according to a 2010 Federal Trade Commission (FTC) study. STORY: Gas prices up 17 cents in biggest July jump since 2000 In some places around the country, gasoline retailers sell at a loss when wholesale prices are high, and they try to make up that loss when prices go down, Visit USA Today for full article

greshams

Champion Author
Cincinnati

Posts:2,005
Points:375,520
Joined:Nov 2011

Message Posted: Aug 1, 2012 11:18:15 PM

Ignore greshams Report Abuse

WASHINGTON – It's a common complaint among drivers: Gas prices shoot up quickly but take their time floating down.

The phenomenon is called "rockets and feathers," and industry analysts say it has been at work for a long time.

Gasoline retail prices rise four times faster than they fall after the wholesale price changes, according to a 2010 Federal Trade Commission (FTC) study.

STORY: Gas prices up 17 cents in biggest July jump since 2000

In some places around the country, gasoline retailers sell at a loss when wholesale prices are high, and they try to make up that loss when prices go down,
Visit USA Today for full article

REPLIES (newest first)Ignore Short Messages

alex395 Champion Author Louisville Posts:2,049 Points:276,640 Joined:Jan 2007	Message Posted: Aug 2, 2012 3:52:09 PM Ignore alex395 Report Abuse Maximizing profits at the retail level and as we used to know and now ignor-price fixing.
shstew Veteran Author British Columbia Posts:286 Points:313,520 Joined:Nov 2011	Message Posted: Aug 2, 2012 8:50:53 AM Ignore shstew Report Abuse Old news
NukeAtComEd All-Star Author Milwaukee Posts:725 Points:338,520 Joined:Jan 2011	Message Posted: Aug 2, 2012 8:49:50 AM Ignore NukeAtComEd Report Abuse no kidding!
Dr Gas Champion Author Twin Cities Posts:3,268 Points:358,365 Joined:May 2004	Message Posted: Aug 2, 2012 8:32:32 AM Ignore Dr Gas Report Abuse OMG, really!!!! If you do not know the answer to this question , you've not been paying attenion in class and you'll have to repeat the grade!
WalkingWV Champion Author West Virginia Posts:3,701 Points:779,595 Joined:May 2008	Message Posted: Aug 2, 2012 7:43:41 AM Ignore WalkingWV Report Abuse Up 30 cents last week, up 27 cents yesterday. [Edited by: WalkingWV at 8/2/2012 7:44:02 AM EST]
WalRus49 Champion Author Boston Posts:4,075 Points:868,865 Joined:Nov 2010	Message Posted: Aug 2, 2012 4:28:16 AM Ignore WalRus49 Report Abuse More organized mayhem and pillage.............
BBopp Champion Author Dayton Posts:6,839 Points:1,937,705 Joined:Dec 2006	Message Posted: Aug 2, 2012 4:17:27 AM Ignore BBopp Report Abuse Simply because they can.
bl626 All-Star Author Toledo Posts:824 Points:242,355 Joined:Feb 2011	Message Posted: Aug 2, 2012 1:11:30 AM Ignore bl626 Report Abuse some one is pocketing though... and it's not us!
anascom Champion Author Hamilton Posts:1,593 Points:553,115 Joined:Feb 2011	Message Posted: Aug 2, 2012 1:06:37 AM Ignore anascom Report Abuse i have read this article or similar one tons of times.... good for new members though!
bston Champion Author Oklahoma City Posts:1,820 Points:642,275 Joined:Mar 2011	Message Posted: Aug 2, 2012 1:05:35 AM Ignore bston Report Abuse No wonder there are so many fanciful buildings owned by the oil conglomerates.
pumaMN Champion Author Minnesota Posts:1,553 Points:337,765 Joined:Aug 2011	Message Posted: Aug 2, 2012 12:24:32 AM Ignore pumaMN Report Abuse ok
MN1 Champion Author Twin Cities Posts:3,359 Points:650,590 Joined:Jun 2011	Message Posted: Aug 2, 2012 12:18:20 AM Ignore MN1 Report Abuse ok
MikeCapeCoral Champion Author Cape Coral Posts:1,932 Points:419,845 Joined:Feb 2012	Message Posted: Aug 2, 2012 12:11:36 AM Ignore MikeCapeCoral Report Abuse The main reason is still what the retailers have to pay to put more gasoline in the hole when the truck pulls up.
carpenter4u Champion Author Virginia Posts:2,436 Points:616,395 Joined:Jul 2011	Message Posted: Aug 2, 2012 12:05:33 AM Ignore carpenter4u Report Abuse It's a game that they play
Cashless Champion Author Akron Posts:3,520 Points:734,305 Joined:Apr 2011	Message Posted: Aug 2, 2012 12:04:58 AM Ignore Cashless Report Abuse Save your breath, I don't wanna hear it.
Blue_Cruzer Champion Author Lexington Posts:7,520 Points:1,669,585 Joined:Mar 2007	Message Posted: Aug 2, 2012 12:03:07 AM Ignore Blue_Cruzer Report Abuse Because they can do whatever they want, and get away with it.
MidNJ Champion Author New Jersey Posts:7,554 Points:1,172,595 Joined:Sep 2009	Message Posted: Aug 2, 2012 12:01:10 AM Ignore MidNJ Report Abuse "Brings a tear to think some folks are losing money on pump price"???? Yep, perhaps the speculators are crying all the way to the bank!!!
emcGas All-Star Author College Station Posts:886 Points:257,790 Joined:Apr 2011	Message Posted: Aug 1, 2012 11:55:17 PM Ignore emcGas Report Abuse ok
davenles Champion Author Texas Posts:3,196 Points:718,660 Joined:May 2011	Message Posted: Aug 1, 2012 11:46:55 PM Ignore davenles Report Abuse Seems like the rockets are headed for Mars.
humblepie Champion Author Toledo Posts:34,221 Points:2,371,370 Joined:Mar 2006	Message Posted: Aug 1, 2012 11:36:39 PM Ignore humblepie Report Abuse brings a tear to think some folks are losing money on pump price
SammyAdams Champion Author Tallahassee Posts:3,054 Points:792,745 Joined:Nov 2010	Message Posted: Aug 1, 2012 11:26:11 PM Ignore SammyAdams Report Abuse It doesn't matter what the reason or strategies. If people are free and not buying or selling under compulsion, then the consumer will win.