I’ve written before about the direct correlation between crude price and the price at the pump. So with crude now down below $90 per barrel, why are we still paying an average of $3.67 per gallon? Well, one reason will be the lag time between crude price and pump price which is about a week as current higher price inventories at retail get worked out of the system. But don’t expect to see gas back in the $2.00 range. Our current energy policies have created a structural cost problem that may permanently keep prices high.
