Friday, December 18, 2009

Why do gas prices go up but not motor oil prices?

Supply and Demand(Econ 101)


It takes more energy to crack gasoline from the crude than it does to get motor oil, hence higher costs. Also there is a higher demand for gasoline than motor oil. As example say you change your oil every 5000 miles thats 1.25 gals(avg 5 qts on change of oil). So you average 22mpg, you would need 227.3 gal of gas to travel 5K miles. The gallons of gas only rise as your mpg falls...20 mpg = 250gal, 18mpg = 277.7 gal. and so forth.Why do gas prices go up but not motor oil prices?
Becouse they have an enormous profit alreadyWhy do gas prices go up but not motor oil prices?
Good question.


I know when I get new siding on my house the guy said that vinyl siding goes up when gas does.
in response to the answer of Redeft.


Then tell me why diesel fuel is on the rise and cost as much if not more than gas if diesel is also a by-product left over after refining gas.
actually, oil prices do go up, just not at that high of a margin. i work at a dealership and we have had to adjust for the oil companies 3 times in the last 3 months.

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