It has been a commonplace observation over many years. Whenever there is a shortage or supply chain problem with crude oil, prices rise immediately. the problem is eventually fixed, but despite a rapid fall in crude prices, it takes weeks or months for the price at the pump to reflect the new reality. I never realized there is a term for this situation. "Rockets and Feathers" is the term used by economists. The wholesale price of gasoline is down more than 80 cents/gallon while the retail has dropped by about 40 cents.
Most of us have heard the excuse the retail station has expensive gas in their underground tanks and they have to sell it before they can buy cheaper fuel and lower prices at the pump. This is surely what happens. However, data over many years indicates there is a deliberate holdup by individual gas stations and chains of pricing. This goes on until competition from stations down the road force prices lower. The same is true of pricing in other industries, but it is most easily observable in a product many of us use every day and track pricing up and down.
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