Petrol Prices

Well, I was wrong. I admit it. I was wrong.

I had a bet that petrol prices would not go below $3.00/gallon during 2008. I was wrong. The bet was made before the economic meltdown, but that doesn't change the fact that I was wrong.

Petrol prices where I live are averaging $2.95/gallon. I originally made the bet because I thought that the oil companies, their lobbyists, and the politicians they bought would keep the prices high, that they could only lower so much before the American people would (finally) realize that the price was being artificially inflated by speculators.

Well, I was wrong.

But I do have a question. At its peak, the price per barrel of crude oil was around $147.00 per barrel. The price of petrol peaked (the national average) was $4.11/gallon on 11-JUL-2008. The price of crude as of 8-OCT-2008 was $77.98 per barrel, which is a steep drop.

Yes, I know...time for math. 147.00 - 77.98 = 69.02 That's right. Prices per barrel of crude have dropped $69.02 since their peak high.

$69.02 per barrel. And yet petrol prices are only down just over a dollar. $4.11 down to $2.95.

Am I the only one that sees a problem here?

Link one: http://www.reuters.com/article/domesticNews/idUSTRE49B38D20081012?feedType=RSS&feedName=domesticNews&rpc=22&sp=true

Link two: http://news.xinhuanet.com/english/2008-10/13/content_10188444.htm