price of gas vs price of oil

[sunshine2777]

This may have already been addressed so I apologize if it this is repeating something else.

Does anyone know the lag time between an increase in a barrel of oil and an increase at the pumps? As we pay around 4$ a gallon now, what price of a barrel of oil is that based on? I hope I'm making sense.

Also, what does $150 a barrel translate into at the pump or even $200?

I appreciate any help you guys can provide on this. Thanks!

[HSmomto4]

$150 a barrel would be $5.45 at the pump and $200 a barrel would be $7.27. I believe the lag time is about 4 to 5 weeks.

[farmgirl]

Thanks! Not good news, but very informative. It really will become a choice between eating and driving to work for many folks. My husband is going to be biking eight miles to the nearest bus stop to go to work. But at those prices it will save us $400 a month. I just hope public transportation doesn't fold. The cities have to pay for gas too.

[sunshine2777]

$150 a barrel would be $5.45 at the pump and $200 a barrel would be $7.27. I believe the lag time is about 4 to 5 weeks.

Thanks for the info. Now, I wonder what that means for diesel and thus groceries. I think someone else is driving this car and we are just along for the ride anyways. Trying to set a budget on a trip planned by someone else is difficult to do. :ohno

[kyol122]

$150 a barrel would be $5.45 at the pump and $200 a barrel would be $7.27. I believe the lag time is about 4 to 5 weeks.

Just curious how you came to this answer? (beacause taxes vary from State to State, distance from refinery, etc.)

[HSmomto4]

JDS taught us that trick a few threads ago. Of course those prices would be like national averages so some states will be higher and some lower.

[Mandy_Bride]

I figured it out!! In Australia we're already paying $5.93 in American dollars!! (Its a difficult sum because we use liters instead of gallons and Australian money instead of US money) I guess if petrol prices are a sign of the rapture then we might get an early rapture in Australia!! (Joking!! :lol)

[Rondaben]

Thanks! Not good news, but very informative. It really will become a choice between eating and driving to work for many folks. My husband is going to be biking eight miles to the nearest bus stop to go to work. But at those prices it will save us $400 a month. I just hope public transportation doesn't fold. The cities have to pay for gas too.

Unfortunately, they will. Think of how much revenue will be lost because of decreasing tax roles related to house price collapse. No money in the coffers.