Lower Oil Price Not Showing Up At Pump
POSTED: 6:36 pm HST July 23, 2008
UPDATED: 7:47 pm HST July 23, 2008
HONOLULU -- Crude oil prices dropped another $4 Wednesday, dipping below $125 a barrel, but the lower prices are not showing up at Hawaii gas pumps.“We’re still getting fuel today from crude oil that was bought last month, so that oil needs to work its way through the pipeline,” said gasoline retailer Barney Robinson. “The other factor is when prices were going up, the prices at the pump did not.”Robinson said oil companies didn’t pass along the entire record increase in the price of oil to gasoline customers.“Competition was keeping the prices from rising in step with crude oil prices,” he said. “Now that it’s coming down, it’s not going to come down as fast because we’re trying to recover from the margins that weren’t gathered when prices were escalating.”The idea of that oil companies will slowly drop gasoline prices didn’t sit well with Brandon Chung, who spent $800 on fuel Wednesday for Rainmaker Irrigation and Landscaping.“(I) never imagined having to spend this kind of money on gas and diesel just to fill up this truck and these tanks,” he said.
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