Despite the fact that oil prices were down to a low $118 a barrel on Tuesday, down more than $25 from July’s high of $147 a barrel, New Yorkers continue to feel pain at the pumps.
The average price of gas in NYC on Tuesday was $4.26, compared to $4.09 in Connecticut and $3.83 in New Jersey.
The executive director of the New York State Association of Service Stations and Repair Shops, Ralph Bombardiere, said one reason why pump prices rise fast in relation to their decline is what the industry calls “replacement cost.”
“If crude oil and wholesale gasoline prices are rising, the price for the next refill of a station’s tanks will be higher and it has to be paid for upfront by the gas station operator — on delivery,” Bombardiere said.
(Source: 1010WINS)
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4 Responses
This totally does not make sense! If oil prices went down then crude oil and wholesale gasoline prices should go down too. It is pure customer gouging!
Ya ya ya…
It’s like those charges you see on your cell phone bills..”Wkahakee charge, govt this charge govt that charge…just give the charge a name and it justifies any price increase.
Bottom line is, “what goes up-gotta come down”, doesn’t seem to apply in food n energy prices..
Its amazing that there is no reduction in “replacement costs” when the prices go down.
Its all profit.I should be in such a business, its a win win situation.
bunch of baloney. They seem to be able to raise the prices as soon as the price goes up on the market. I think the old email floating around to boycott ExxonMobil should be enacted. They reported record profits at our expense so it’s not just the sheikhs in the arab countries who are getting rich due to the price of oil.