Originally posted by Anonymous ATS
How come gas price at the pump is going up but gas price per barrel is going down![]()
Value of inventory?
If your station bought gas when say the RBOB future was at $1.30 a gallon and while you have that load of gas in your tank at the pump, RBOB sells down to $1.10. Are you going to sell what you previously purchased $0.20 higher for $0.20 lower, taking the .20 a gallon loss? I doubt it. Your prices will come down $0.20 when you purchase another load of gas at the lower rate.
Will they not?
I use RBOB for reference but it'd probably be more correct to say if the gas was made from higher priced crude. I don't know much about that end of the deal. But it seems gas at the pump lags a ways behind RBOB+RoadTax and I assume that has to do with the value of the gas purchased by the station at the time of purchase.

