OK, so when Congress held it's "hearings" (and I use that term loosely), the oil execs said that gas prices go up when oil goes up and they have no control over that. So, why is it that when there's a whiff of trouble in the oil pipeline (figuratively, not the actual pipeline), gas prices shoot up, but when oil plummets to the lowest it's been in over a year, we're still over $3/gallon?
Check out this chart:
You can change the timeline. Notice that in July, oil was over $145/Bbl. and gas was about $4.12/gal. That's a ratio of about $35:1. Now, oil's about $80/Bbl. and gas is about $3.05/gal. That's a ratio of about $26:1. What's up with that? Using the same ratio as July, gas should be around $2.29/gal. today.
So, why is it that gas never drops as much as it goes up? Well the answer is simple, but unfortunately there's nothing we or any politician can do about it. How much you wanna bet the oil companies have no problem growing their profits this year even during the "economic downturn".