Originally Posted by Bowser
So gas is less expensive per barrel today than when it was 3 bucks a gallon. But in the span of a year, our demand has risen so sharply that gas companies have no choice but to raise prices? I have no idea on how to refute that, but I'm not sure I buy that.
Crude oil is $10 less expensive per barrel than it was when gasoline was last at $3 per gallon. That means that gasoline shouldn't be near $3 per gallon now, right?
Refineries are operating at ~88% capacity right now. The last time gasoline was near $3/gallon, they were operating at near 100% In other words, the present high price of gasoline has more to do with refining capacity (or lack thereof) than it does with the price of crude.