, ,

While the average price for a barrel of oil was $77.40 in November, after the first week of December it was spotted around $65 a barrel. There’s been about a 16% drop (though the December amount is one static price and not an average over 30 or so).  For argument sake, taking the 16% at this point, will gas prices drop that much?  No. Due to ‘game theory’, gas dealers are ready and willing to jump in and follow increases of crude with higher gas prices before their competitors – yet when oil drops, they tend to hold back and see what the other dealers will do. There are some other cost factors, but by and large it is the competitive nature of salesmen that are determining your short run gas prices!