Quote:
Originally Posted by Donger
Because retail prices drop more slowly than they increase. Think of it this way:
When gasoline prices are dropping in response to crude dropping, the retailer is still selling gasoline that he bought when crude was higher. So, in order to not lose too much money on the inventory he has in his tanks, he drops his prices as slowly as possible.
Make sense?
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Sure is funny that when prices are going up, it's about the replacement cost, and when it's going down it's about what he paid for what is in the tank. Why don't you just call it what it really is?