Prices after Gustav: Oil Down, Gas Prices Remain
By: Julie Musgrave
Updated: September 4, 2008
Hurricane Gustav sent gas prices back up last week, just after we finally saw a significant price decrease.
Unfortunately, gas prices are still up, even though the price of oil has dropped. One week ago, the price of oil was a little more than $115 a barrel. Today, it's dropped to $107.
But the price at the pump has stayed the same. Unfortunately for the consumer, any drop in oil prices won't affect you just yet.
That's because gas stations have to pay a refined gas cost, the middle man between the crude oil and the gas you put in your car.
The profit margin is so slim, many stations are just breaking even. Contrary to the belief that oil companies are doing quite well.
So last week when Hurricane Gustav hit land, whatever price was paid then -- now has to be made up.
Local customers are indifferent when it comes to the cost, some understanding... some still waiting for a price relief.
One thing that you can do to help lower prices at the pump is to pay with cash. The fees from credit and debit cards hurt the station more, forcing them to keep prices higher to make ends in meet.
