Do falling prices in crude oil reflect in gas prices as instantly as rising prices in crude oil do though? I think that asymmetry is what the poster was calling out. It lets resellers skim a bit of extra profit off of the volatility, by raising prices quickly but lagging on lowering them.
And i know i simplifying things A LOT here.. but that is the mentality behind it..
When crude oil price go up then gas station raise their prices because they know next they they buy it will be more expansive and they will need more money to afford it, so they raise their prices prices immediately..
On the other hand, if crude oil prices drop, it means that next time they buy it will be cheaper, but the gas they currently have was expensive, so they need to keep the prices up to recover what they already paid for it..
