Chesterton Tribune

Do the math: Oil prices fall while gas prices stay high

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Voice of the People

Can someone please help me with this math problem? I always thought I was pretty good at math, but this one has me stumped.

According to one of my local newspapers, the price of oil on Friday, Aug. 15 dropped to itís lowest level in three months to $113.77 a barrel. The record high on July 11 was $147, a difference of $33.23 or 24 percent. The article said that on July 17, the price of gasoline peaked at $4.114 a gallon. (My hometown peaked at $4.29). It also said the new national average is $3.771.

Now the math: If we take the peak price and multiply it by 24 percent, we get .99 cents difference. If we subtract the .99 from the $4.114, we get $3.124 a gallon. Wait a minute! Why didnít the price of gasoline drop the same 24 percent like the oil? Where is the .65 cents difference?

To make matters worse, the price of gasoline in my hometown, Chesterton, on Friday was back up to $4.10. That means in my hometown right now, there is a .98 cents difference. If a fifth grader can do this math and see there is a ripoff, why canít congress?

Shame on you Associated Press for not pointing this out!

Richard Rockstraw


Posted 8/18/2008