THE UPS AND DOWNS OF GASOLINE RETAIL PRICES

The gasoline prices consumer pay fall just as quickly after crude oil price drops as they rise after crude oil price increases, according to a study by the American Petroleum Institute (API).The study is based on monthly and weekly data on the retail and wholesale prices of gasoline and the price of crude oil from 1982 to 1991. In a report, the API notes that "a large segment of the public appears to believe that in response to changes in the price of crude oil, retail prices of petroleum products like gasoline rise faster than they fall."