Oil prices down, pump prices still up
Oil prices down, pump prices still up Save Email Print
Posted: 6:02 PM Oct 7, 2008
Last Updated: 6:21 PM Oct 7, 2008

A | A | A

KNOXVILLE, Tenn. (WVLT) -- Crude oil prices are at an eight month low, but the price you're paying at the pump is still a lot higher than it was back then.

In February, crude oil prices were around $90 a barrel, and gas prices averaged $2.91 a gallon.

But Tuesday in Knoxville, the average price of gasoline stood at $3.49 a gallon.

The price difference is almost $0.60 a gallon.

A lot of motorists say it just doesn't make sense, but officials with AAA say the Southeast has the highest gas prices as we continue to deal with gas shortages.

Anne Armstrong says she doesn’t understand the high gas prices.

"I wish I knew. I could probably make a lot of money if I did know."

But Don Lindsey with AAA says oil prices tend to fluctuate more than gas prices. He says retailers often hold prices from going up when oil does then do the reverse.

Lindsey says, "When gasoline price come back down again they'd wait a little bit and not come down as fast to kinda recoup some of what they lost."

But when drivers hear low crude prices and see high gas prices.

Dick Grissom feels gas prices should be so high, and says, "I've run those numbers myself and it just doesn't compute. Somebody's making the money and where it is I don't know."

Armstrong says, "Somebody is taking advantage of people like me at the pumps."

There is one variable that's present today that wasn't back in February. There are gas shortages.

Gene Baker had a hard time finding higher grade gasoline,

“It had bags over the hoses, so I was very glad to find something open."

Lindsey says two hurricanes to the Gulf coast disrupted flow from the refineries that deliver our gasoline. The Southeast, nationally, now has the highest gas prices.

Lindsey says, "How far the gasoline will drop largely depends at this point on how quickly they can get those gasoline refineries back up."

So will we see lower gas prices? Maybe.

Lindsey says if the price continues to drop and remain lower, then yes.

But that may not be the case. Bloomberg is reporting that OPEC is looking at cutting production.

That sent the cost per barrel up more than $2 Tuesday.

More Stories
Family Remembers Former Vol Best As Role Of Minister

Knoxville celebrates Independence Day

Arson investigators look into Western Heights fire

Woman drowns in Douglas Lake, alcohol believed to be a factor

Honduras rejects OAS appeal to restore president

SKorea says NKorea fires 2 missiles off east coast

Kyle says gubernatorial race decision coming soon

Flames engulf boat on Fort Loudoun Lake

Post Your Comments
First Name:
Location:
Enter Comments: characters left
Email (optional):
By posting this comment I have read and agree to the Terms of Use and Privacy Policy:
You must agree to the Terms of Service to continue.
Read Comments
Comments are posted from viewers like you and do not always reflect the views of this station.
Posted by: Rene Location: Maryland on Oct 17, 2008 at 08:59 PM
I spoke to a friend of mine who owns an exxon station in FLA. about this same situation, and he sais he doesn't understand this problem either, which vrings up a very interesting question, who does? The Customer doesn't understand, the Retailer does't understand, the Distributer doesn't understand, AAA doesn't understand, the Gov't doesn't understand, but they have no problem charging upwards of $.25/gal..., that only leaves one more hand in the pot... the Refiner/Manufacturer! Are they really the only ones that understand what is happening here, or is there more to the story? Here's what I know, the price of sweet crude was $147/barrel... yesterday, $75/barrel... Price at the pump was $3.89/gal yesterday $2.89/gal. does this make any sense? Do we know who is supposed to Know what is going on and whan do they let us know? I wanna know. you know?

Posted by: Anonymous on Oct 10, 2008 at 02:19 PM
Come on people it is simple economic. THE RICH GET RICHER AND THE POOR GET POORER

Posted by: jt Location: east tn on Oct 10, 2008 at 01:17 PM
Congress has the authority to lower gas prices--they don't want the Pres. to look good so they are holding off. Let's all vote all incumbents out of office in November--they are all benefiting from this. The taxpayers pay their gas and auto expenses--so why should they care what it costs? Let them have to pay for it themselves and you'll see the prices go down--and, YES, WE SHOULD DEFINITELY PAY WAY UNDER $3.00/GALLON--THE COST PER BARREL is way down--but the suppliers see that we were able to pay above $3.00 so they'll just keep it there--they don't realize we have to pay it or all live off the govt with food stamps. Amazing--but in Cocke County--as usual--the prices are even higher than anywhere else ALWAYS!!

Posted by: Kenneth Location: Maryville on Oct 10, 2008 at 12:49 PM
Why does everyone say it's the presidents fault. We do have a democratic congress that is doing nothing but getting richer as they continue to earmark monies for their pet projects.

Posted by: MurrY Location: jaCKSBORO on Oct 9, 2008 at 06:25 PM
Come to LAfollette

Posted by: Andy Farmer Location: jacksboro on Oct 8, 2008 at 01:09 PM
Joe stated that 'the prez is sure not going to do anything about it because hes getting richer from it'. Bush owned an oil company but sold it in 1986. He may still own stock in oil companies but so do most Americans who have a mutual fund so therefore aren't they getting rich also?

Posted by: Wayne Location: Knoxville on Oct 7, 2008 at 06:58 PM
After doing a year long study of gas prices at the pump vs. on the stock market, I think a better question would be, why are we paying about $1.30 above the market price? During my unscientific study I found that gas prices at the pump ran about $.50 above market price on average. I just wanted to see if their was any real price increases at peak travel times, i.e. 4th of July, Christmas etc. I found (to my surprise)that their were no increases but did notice the 50 cent average. Today, 10-07-2008, the market price for unleaded gasoline closed at $2.06/gal. with oil at $89.54/barrel. You can check this at CNBC.com. Gas at my nearest pump is at $3.39. That is ~80 cents above what has been the average. Somebody is making a lot of money off the backs of the southern people. How does the Hurricane disrupt only the southern pipe line? The pipelines feeding the rest of the country are some how saved! Someone explain that to me.

Posted by: joe Location: nc on Oct 7, 2008 at 06:44 PM
people are just tired of getting royally screwed.the prez is sure not going to do anything about it because hes getting richer from it.but the people have just about had enough.

Currently
Local Radar
Radar