Vague News: The Moron's Guide to Investing: A Strategy for Reducing Your Cost for Gas
A butterfly flaps its wings in the Saudi desert, causing the State Department to release a warning of increased terrorist activity. The futures market flips out, sending the price of crude skyward.
The higher price on the futures market makes it more expensive for refiners to acquire crude to refine into gas. When the refiner's work is done, the emerging gas will be priced accordingly higher. This raises the rack price and the prices on the spot markets.
Refining oil into gas isn't instantaneous, and there can be a lag before the higher price of the oil is reflected in higher gas prices paid by jobbers and oil companies. That, of course, didn't stop them from raising prices the moment the futures market jumped. So now that the oil that was purchased for refining at a higher cost is ready to hit the market as gas, the oil companies will raise prices again.
This double-dipped price is passed onto dealers, which is then inflated yet again so the dealers can turn a profit.
You paid more for gas thanks to a butterfly.
The Moron's Guide to Investing has thoroughly researched the reason for the high cost of gas. In order to save you some time in reading a boring 2 thousand word report, here are two pictures illustrating what needs to be done to reduce the price you are paying for gas.
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