'Sticky' prices for fuel adhere to your wallet
By JEFF DONN
Associated Press
While U.S. oil companies blame the global oil market for high gasoline prices, a close analysis of pricing suggests it's not so simple: The run-up at the pump also comes from domestic refining, which is largely controlled by Big Oil.
In consultation with economists, the Associated Press examined pricing trends since 1999. It found evidence that:
The portion of gasoline prices tied to refining has ballooned all on its own, apart from oil.
•The suspicion of frustrated drivers is correct: After upward spikes, the price of gasoline drops back more slowly than the price of oil — and someone pockets the difference.
The petroleum industry knows that many drivers are steamed about both its record prices and profits.
story continued
Associated Press
While U.S. oil companies blame the global oil market for high gasoline prices, a close analysis of pricing suggests it's not so simple: The run-up at the pump also comes from domestic refining, which is largely controlled by Big Oil.
In consultation with economists, the Associated Press examined pricing trends since 1999. It found evidence that:
The portion of gasoline prices tied to refining has ballooned all on its own, apart from oil.
•The suspicion of frustrated drivers is correct: After upward spikes, the price of gasoline drops back more slowly than the price of oil — and someone pockets the difference.
The petroleum industry knows that many drivers are steamed about both its record prices and profits.
story continued
posted by anthony m, at Sunday, August 13, 2006
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