Consumers: Gas prices dropping slower than oil prices

July 23, 2008 4:26:30 PM PDT
As oil prices fell over the past few weeks, many people felt Chicago area gas prices dropped less than prices in other areas across the country. With prices still averaging well over $4 a gallon around the state, gas hardly seems like a bargain. But the prices have dropped even though many drivers have barely noticed.

"It's come down a few cents since last week," said Ann Doukas.

"Not nearly where we were six months ago," said Waldo Joaquin.

Analysts watched the price of a barrel of oil go from $147 to $124 Wednesday. They believe that trend can continue.

"Everybody is making predictions we would go to $150 and $200 a barrel and oil would never come down again. We have had a substantial drop," said Phil Flynn, Alaron futures analyst.

That would be good news for consumers who have been hit hard by the price at the pump and the price of nearly everything else that has to be transported. Skeptics wonder why the price per gallon failed to drop as quickly as the price per barrel.

"When the price goes up, we see it at the pump immediately, but when it goes down, it takes weeks before it hits the pump," said Barb Fedyna.

Some could be dependant on when a fuel station bought what is in the tanks now. That will make a difference at the pump," said Nicole Niemi, AAA.

Analysts said there is no guarantee prices will drop. Hurricane forecasts and stability in the Middle East will have an impact on that.


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