Latest questions:
Trending questions:
Hot questions:
Global lower oil prices
Whyhave the global lower oil prices not reached at our local gas stations yet?
50 months ago
2 answers
There is some delay and separation because companies who produce oil and companies that sell oil are different. You should see local gas prices go down as demand goes down. If people are staying home and not driving to work as often as before, and businesses aren't delivering as much because of lower business volume driven by lower consumer demand, then the gas price will follow.
It has gone down in my area already and I predict it will continue to remain so until demand picks up -meaning businesses open again, people go back to work and start earning, and consumers have more money and start spending.
49 months ago
Current oil prices are related to lockdowns and less flow of international business, air & sea freights and may soon be seen to be reduced for individual consumers globally too.
However, usually in many national economies, the decrease in price does not directly affect the price individual consumers pay. The main reason for this is that governments use the difference in price as a source of income to be used for governmental expenditures in many countries.
49 months ago
