Wednesday, July 28, 2010

Why do fuel costs rise with oil prices, but not oil prices in the store?

i see a barrel of oil goes up $20 then immediately the price of fuel jumps $.25 a gallon, why doesn't the cost of oil go up? Jiffy Lube doesn't change their cost for an oil change 3 to 4 times a week.Why do fuel costs rise with oil prices, but not oil prices in the store?
Gasoline is more of a commodity. It is purchased almost daily for each gas station at the price that day. The cans of oil were probably purchased months ago and stay on the shelf for a long time. You wont see a change in price until the jiffy lube warehouse has to restock and buy the canned oil at a higher price.

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