Higher Crude Oil Prices Mean Higher Gas Prices, Again

For the first time since May the average price for a gallon of gas has increased. It has stayed just under the four dollars a gallon price but in some cities that may not be true any longer. The price for crude oil has increased so that means the consumer gets to pay more at the gas pump. On the average gas is going to increase almost nine cents a gallon. Crude oil has increased almost four cents a gallon from ninety sixty dollars a barrel to almost a hundred dollars a barrel.

Now I am not a math genius but if crude oil only increased approximately four cents a barrel why are we seeing an increase of approximately nine cents at the gasoline pumps. Is the other five cents going into the government pockets? They are “claiming” that because the crude oil prices increased is why they gasoline prices increased but yet we have a weak demand, weak economy, and high unemployment. These three factors would have meant that gas prices would have dropped if the price of crude oil had not increased.

If crude oil had increased more than four cents it would have made sense to increase the price of gas but to raise it approximately nine cents on the gallon is ridiculous. They need to take in consideration those three factors before they thought about lining the government pockets. A year ago gas was approximately $2.75 a gallon which is almost a dollar cheaper than it is today.