Latest / Energy Economics with Fexingo: Oil Prices, Renewables, and the Cost of Power
Why Gas Prices Take Forever to Drop Even When Oil Crashes
Lucas and Luna crack open the puzzle that frustrates every driver: oil prices plunge, yet gas pumps barely budge. On June 8, 2026, WTI crude is around 91 dollars a barrel, down more than 5 percent in the last five days, but regular gasoline is still averaging 4.30 a gallon nationally. Why doesn't the price at the pump fall in lockstep with crude? The answer is a mix of refinery capacity constraints, seasonal fuel specifications, and the fact that gasoline prices are set by wholesale racks and futures spreads—not the headline oil number. Lucas walks through the refining crack spread…
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