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Why do gasoline prices rise so quickly and fall slowly?

Asbury Park Press -- Gasoline seemingly goes through a maze to get from the oil field to your car, with the price adjusted multiple times along the way. But there’s a simple explanation as to why gasoline station owners raise prices faster than they lower them: because they can.

It could be called a dirty little secret, but it’s not even a secret. In fact, there’s a phrase for it – up like a rocket, down like a feather. And to motorists, it’s awfully irritating.

“It seems like you’ll read in the paper that the price for a barrel of oil has fallen, and then you’ll have to wait forever” before it hits your pocketbook, said Joan Freyer, a Deposit, N.Y., resident who was visiting the Shore on vacation last week.

After declining nine consecutive weeks, gasoline prices are on the rise again, cutting into

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Submitted Jul 23, 2012 By: MidNJ

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tomok Champion Author Portland Posts:33,596 Points:2,373,210 Joined:Aug 2006	Message Posted: Jul 27, 2012 3:53:13 AM Ignore tomok Report Abuse Fuel at the pump does go up like a rocket and down like a feather, so very true. Fuel retailers and suppliers try to get the most money for their product. If volume sold goes down, drop the price a little. When volume sold goes up, raise the price slightly. There is No supply and demand, Big Oil will charge what they want because they can. If you don't like the price of fuel at the pump, try the other fueled vehicles (such as EV's or Inbreds) that may cost less to fuel the vehicle for the miles driven. Whatever the size or shape of the vehicle, Produce and ‘Drive’ vehicles with high MPG, are very safe, reliable, have a ‘reasonable’ cost and a good ‘value’ for the money. Consider using other forms of less expensive transportation to lower your cost. The price of fuel at the pump is too high! 12/22/2012
1006 Champion Author Birmingham Posts:1,106 Points:1,371,110 Joined:Apr 2008	Message Posted: Jul 26, 2012 8:57:01 PM Ignore 1006 Report Abuse who likes to lower prices when you are on that side?
honda0105 Champion Author Tallahassee Posts:18,828 Points:1,637,220 Joined:Nov 2008	Message Posted: Jul 25, 2012 7:18:03 AM Ignore honda0105 Report Abuse PCW: nah... answer: Pig Oil greed.
PCWHIZ All-Star Author Denver Posts:585 Points:449,090 Joined:May 2004	Message Posted: Jul 23, 2012 11:37:44 PM Ignore PCWHIZ Report Abuse Why do gas prices rise so quickly & fall slowly? That's the million dollar question.
bston Champion Author Oklahoma City Posts:1,955 Points:669,990 Joined:Mar 2011	Message Posted: Jul 23, 2012 11:23:52 PM Ignore bston Report Abuse Seems like a gamble & we can't win.
A2J Champion Author Richmond Posts:3,205 Points:628,700 Joined:Aug 2011	Message Posted: Jul 23, 2012 10:34:21 PM Ignore A2J Report Abuse Oil Politics
PDQBlues Champion Author San Diego Posts:7,214 Points:1,476,025 Joined:Jan 2009	Message Posted: Jul 23, 2012 10:32:45 PM Ignore PDQBlues Report Abuse FuelishGuy: Capitalism 101: Thou shall make a profit ...the more the better ...the faster, even better! And what we lack then is competition. Capitalism works for the consumer ONLY when competition is strong. But the oil corporations collude, and as such, there is no competition.
FuelishGuy All-Star Author Edmonton Posts:823 Points:950,855 Joined:Oct 2008	Message Posted: Jul 23, 2012 8:37:11 PM Ignore FuelishGuy Report Abuse Capitalism 101: Thou shall make a profit ...the more the better ...the faster, even better! If you can't beat em, join em. Buy the oil companies before the Chinese scoop them all up. Limited time offer; batteries not included.
bwatchingu Champion Author Arkansas Posts:1,859 Points:627,925 Joined:Jan 2009	Message Posted: Jul 23, 2012 6:25:36 PM Ignore bwatchingu Report Abuse I have to the word-greed.About 4 years ago the Murphy USA(at Walmart)all of a sudden raised their price $.15 the same day as gas and oil was still going lower.Called the home office and asked them for an answer-they couldn't give me one,and said someone would call me back(didn't)and before I ended my call I told them that I posted their price on GasBuddy and that their price was the highest in the state of Arkansas.They dropped their price back down within one hour.Another raised their price later but only briefly only because they thought they could make extra money.They admitted such to me.GREED
PurplepassionNC All-Star Author North Carolina Posts:838 Points:157,310 Joined:Mar 2012	Message Posted: Jul 23, 2012 5:52:08 PM Ignore PurplepassionNC Report Abuse Called greedyness....
dcone2 Champion Author Los Angeles Posts:1,065 Points:112,335 Joined:Jul 2012	Message Posted: Jul 23, 2012 3:25:33 PM Ignore dcone2 Report Abuse We're getting ripped off again!!
leemun Champion Author Utah Posts:5,683 Points:1,067,765 Joined:May 2010	Message Posted: Jul 23, 2012 3:20:24 PM Ignore leemun Report Abuse On greed: "The public may curtail my profits any time it wishes – by refusing to buy my product. . . . Any other method of curtailing profits is the method of looters – and I recognize it as such.”
Fitwit Champion Author Stockton Posts:6,523 Points:1,379,755 Joined:May 2009	Message Posted: Jul 23, 2012 1:09:57 PM Ignore Fitwit Report Abuse There seems to be a greed consensus.
Soglaos Champion Author Virginia Beach Posts:2,851 Points:765,405 Joined:Feb 2011	Message Posted: Jul 23, 2012 12:57:01 PM Ignore Soglaos Report Abuse greed
Bigtex09 Champion Author Dallas Posts:4,427 Points:1,186,865 Joined:Oct 2009	Message Posted: Jul 23, 2012 12:50:43 PM Ignore Bigtex09 Report Abuse greed
zoomer20 Sophomore Author Indiana Posts:232 Points:279,270 Joined:Apr 2012	Message Posted: Jul 23, 2012 12:39:04 PM Ignore zoomer20 Report Abuse Big oil and stock market greed. Just because oil goes down doesn't mean that my saved cash is "disposable income"...no such thing in my book. Just means I have the money to pay another utility bill on time, do to the screwed up economy. The only thing that was disposable was my job of 20 years that was eliminated due to corporate greed over the past 10 years or better.
jcdakota Champion Author Baltimore Posts:1,427 Points:377,345 Joined:Nov 2010	Message Posted: Jul 23, 2012 12:05:16 PM Ignore jcdakota Report Abuse This was a very informative article -- any ideas how to get it to operate at the same speed up or down?
TXryder Champion Author Texas Posts:2,854 Points:460,510 Joined:Jan 2012	Message Posted: Jul 23, 2012 11:57:31 AM Ignore TXryder Report Abuse quite obvious out here.... G R E E D !
ampinoy13 Champion Author Oregon Posts:37,017 Points:2,677,305 Joined:Jul 2004	Message Posted: Jul 23, 2012 11:55:45 AM Ignore ampinoy13 Report Abuse Speculators and oil company GREED!
bobsalwaysmt Champion Author Long Island Posts:4,709 Points:268,240 Joined:Oct 2007	Message Posted: Jul 23, 2012 11:54:06 AM Ignore bobsalwaysmt Report Abuse Manipulation!
ARCO Champion Author Pittsburgh Posts:2,478 Points:2,403,120 Joined:Sep 2005	Message Posted: Jul 23, 2012 11:52:43 AM Ignore ARCO Report Abuse ALL ABOUT THE $$$$
sciotosix Champion Author Dayton Posts:2,889 Points:693,825 Joined:Apr 2011	Message Posted: Jul 23, 2012 11:43:19 AM Ignore sciotosix Report Abuse Because they can.
zaq001 Champion Author Atlanta Posts:4,119 Points:1,500,755 Joined:Oct 2008	Message Posted: Jul 23, 2012 11:42:37 AM Ignore zaq001 Report Abuse ok
tes283 All-Star Author Tampa Posts:865 Points:368,850 Joined:Dec 2011	Message Posted: Jul 23, 2012 11:40:58 AM Ignore tes283 Report Abuse If we'll pay, why not charge more?
AJeepLife All-Star Author Ottawa Posts:679 Points:349,770 Joined:Mar 2011	Message Posted: Jul 23, 2012 11:40:15 AM Ignore AJeepLife Report Abuse the FREE MARKET economy is the plus and the minus to most prices in North America- but the fact remains that BANK INTEREST- at 15-27.99% and oil/gas prices -exaggerated and inflated- are designed to manipulate the economy and to make it FREE- only to those that control it- not to US the actual economic participants.
viperahul Champion Author Oakland Posts:1,366 Points:622,375 Joined:Feb 2006	Message Posted: Jul 23, 2012 11:39:41 AM Ignore viperahul Report Abuse Greed.
SUPERQUACK Champion Author Sacramento Posts:6,247 Points:1,938,130 Joined:Jun 2007	Message Posted: Jul 23, 2012 11:39:37 AM Ignore SUPERQUACK Report Abuse YES ..... GREED !!!!!!!!!
TWS658 Champion Author Portland Posts:4,543 Points:950,875 Joined:Sep 2005	Message Posted: Jul 23, 2012 11:38:07 AM Ignore TWS658 Report Abuse Greed!!!!
zeeflyers All-Star Author Pittsburgh Posts:713 Points:230,655 Joined:Feb 2012	Message Posted: Jul 23, 2012 11:37:13 AM Ignore zeeflyers Report Abuse so big oil makes more money. DUH!
Homito All-Star Author San Antonio Posts:880 Points:174,700 Joined:Apr 2011	Message Posted: Jul 23, 2012 11:37:02 AM Ignore Homito Report Abuse who will help us? who will free us?
Homito All-Star Author San Antonio Posts:880 Points:174,700 Joined:Apr 2011	Message Posted: Jul 23, 2012 11:36:44 AM Ignore Homito Report Abuse hostages in a carbon-based empire.
CPayZombie Champion Author Phoenix Posts:10,220 Points:1,683,315 Joined:Aug 2008	Message Posted: Jul 23, 2012 11:36:19 AM Ignore CPayZombie Report Abuse When one's back hurts, one tends to move quickly in the direction of the least pain. As things improve, one move slowly into another position.
ROSYMI Champion Author Michigan Posts:1,028 Points:388,600 Joined:Nov 2011	Message Posted: Jul 23, 2012 11:31:52 AM Ignore ROSYMI Report Abuse they are just making their money who cares what we say
bullfrog69 Champion Author Texas Posts:2,304 Points:850,760 Joined:Nov 2009	Message Posted: Jul 23, 2012 11:31:47 AM Ignore bullfrog69 Report Abuse Don't buy and watch it fall like a lead ballon!
regasaz Champion Author Phoenix Posts:5,779 Points:1,300,035 Joined:Dec 2006	Message Posted: Jul 23, 2012 11:31:09 AM Ignore regasaz Report Abuse Retailers jump prices immediatly to increase their profit magins. When you see prices jump 12 cents and no deliveries made in the past 24 hours, there is no other excuse.
fervid Rookie Author St. Louis Posts:51 Points:429,035 Joined:Jul 2011	Message Posted: Jul 23, 2012 11:29:10 AM Ignore fervid Report Abuse They just need a law/requirement as to how many times or how much the price can change per day. Something like 1 change per day up or down a max $.03 change. You choose up when everyone else goes down then you get to deal with lost profits/customers for the day.
Car54BC08 Champion Author British Columbia Posts:4,394 Points:1,538,040 Joined:Jun 2008	Message Posted: Jul 23, 2012 11:28:47 AM Ignore Car54BC08 Report Abuse Oil dropped today and see if we ever see it at the pumps. I doubt it.
lonewolfhead Champion Author Texas Posts:1,688 Points:585,980 Joined:Aug 2011	Message Posted: Jul 23, 2012 11:28:42 AM Ignore lonewolfhead Report Abuse There are resellers that are in the middle that also jack up the price that the stations pass along to the pump
schatzila Champion Author Los Angeles Posts:5,089 Points:1,044,320 Joined:Jun 2010	Message Posted: Jul 23, 2012 11:28:39 AM Ignore schatzila Report Abuse No one really knows.
DeeMamma88 Veteran Author San Bernardino Posts:352 Points:303,855 Joined:May 2012	Message Posted: Jul 23, 2012 11:27:27 AM Ignore DeeMamma88 Report Abuse Gouge the consumers!
deaconjones Champion Author Cleveland Posts:2,259 Points:324,955 Joined:May 2006	Message Posted: Jul 23, 2012 11:26:30 AM Ignore deaconjones Report Abuse IT IS CALLED GREED......
Stevedog Champion Author Michigan Posts:3,993 Points:1,973,675 Joined:Jul 2006	Message Posted: Jul 23, 2012 11:25:56 AM Ignore Stevedog Report Abuse it's called collusion and every time there is an investigation dirty politicians can't seem to find anything wrong
toxigas Champion Author Oakland Posts:1,333 Points:433,000 Joined:Oct 2011	Message Posted: Jul 23, 2012 11:25:53 AM Ignore toxigas Report Abuse "up like a rocket, down like a feather" Sounds about right.
VernonOR Champion Author Oregon Posts:3,018 Points:758,980 Joined:Aug 2010	Message Posted: Jul 23, 2012 11:25:43 AM Ignore VernonOR Report Abuse Greedy oil companies, refineries, and speculators have a lot to do with the price at the pump.
91Explorer All-Star Author Dallas Posts:634 Points:1,154,140 Joined:Oct 2009	Message Posted: Jul 23, 2012 11:24:44 AM Ignore 91Explorer Report Abuse yup that seems correct!
flatrock14 Champion Author Michigan Posts:2,785 Points:803,505 Joined:Oct 2010	Message Posted: Jul 23, 2012 11:23:49 AM Ignore flatrock14 Report Abuse someone is playing a game on us
bicycler Champion Author Ontario Posts:14,815 Points:2,598,445 Joined:May 2005	Message Posted: Jul 23, 2012 11:23:12 AM Ignore bicycler Report Abuse Gee that`s funny all the station owners and those who lease say that it is the 'oilbarons' who set the price! Perhaps the situation in Canada is different?
ShineRunner Veteran Author North Carolina Posts:272 Points:310,295 Joined:Apr 2006	Message Posted: Jul 23, 2012 11:22:34 AM Ignore ShineRunner Report Abuse We need government policies that will stabilize the prices. Not with this administraion will we get that.
MightyDude Champion Author Minnesota Posts:10,496 Points:2,676,445 Joined:Mar 2003	Message Posted: Jul 23, 2012 11:22:32 AM Ignore MightyDude Report Abuse its called GREED
unicornpmb Champion Author Buffalo Posts:8,631 Points:1,657,215 Joined:Sep 2005	Message Posted: Jul 23, 2012 11:22:29 AM Ignore unicornpmb Report Abuse How to make money 101.