How often have you heard the complaint that gas prices go up faster than when they go down? Especially after the latest pipeline break in Illinois.
Consider how wholesale gas or any high turnover products are purchased.
Merchants pay for product with some of today's receipts. In order to buy more product tomorrow, they need to raise prices PDQ.
Conversely, when prices go down they want to make up for some of the smaller margins they had as prices went up and to provide some protection against prices going up again.
If the rate of prices going up matched the rate of prices coming down, we would probably be very upset when our favorite station ran out of gas.
