- Joined
- Apr 14, 2006
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- 23,282
I just saw this new report from the Federal Trade Commission and remembered this thread
http://ftc.gov/os/2011/09/110901gasolinepricereport.pdf
It addresses the fact that retail gasoline prices rocket up in response to crude increases but settle back down "like a feather" when crude prices decrease. (known as "asymmetric passthrough") They speculate on some causes but come to no definitive answer. The report also discusses refinery capacity issues, including consolidation and capacity expansion at existing refineries. They don't address the widening crack spread (with or without K-Y), which makes me question some of their conclusions.
For those interested in this issue, it is worth the time to read.
http://ftc.gov/os/2011/09/110901gasolinepricereport.pdf
It addresses the fact that retail gasoline prices rocket up in response to crude increases but settle back down "like a feather" when crude prices decrease. (known as "asymmetric passthrough") They speculate on some causes but come to no definitive answer. The report also discusses refinery capacity issues, including consolidation and capacity expansion at existing refineries. They don't address the widening crack spread (with or without K-Y), which makes me question some of their conclusions.
For those interested in this issue, it is worth the time to read.