When Will $2 Gas Return to South Dakota?

If you are like me you check. Every day!  Every day I drive by the gas stations wondering when the price at the pump is going to follow along the price of a barrel of crude oil. I'm no mathematician but I don't get it. If the cost of a barrel is so low, how come we don't see the savings at the pump?

According to Marketwatch.com

Based on history, “average gas prices should be at or below $2 per gallon when oil is cheaper than $40 per barrel,” he said. But “there is an enormous disconnect between oil and gasoline prices due to ongoing refinery problems and record-high driving demand.”

 

Seems that the blame is partly on us. We still have summer vacations to finish up and we're doing quite a bit of driving.

“Driving demand remains high, major refineries are still experiencing problems and we expect heavy refinery maintenance this autumn,” said Green.

Sounds like it could take some time. And it also sounds like it could be a nice Thanksgiving and Christmas gift again this year.