Why are gas prices slow to come back down?

AAA Carolinas said oil prices account for 50 percent of what people pay for at the pump.

RALEIGH N.C. (WNCN) – Although crude oil prices dropped this week, it’s going to take longer to see that translate to prices at gas stations.

Tiffany Wright with AAA Carolinas said oil prices account for 50 percent of what people pay for at the pump.

Wright said oil and gas companies react quickly to any changes in market prices, like the world saw last week amid increased sanctions against Russian oil.

“People are trying to make money and also anticipate those losses,” Wright said.

That’s why she said it’s easy to see a 15-cent increase overnight, but when oil barrel prices drop, gas prices take longer to follow.

“They bought the gas when it was expensive, so if gas stations were to abruptly drop their prices, they would be operating at a loss,” Wright said.

Wednesday, President Joe Biden urged oil and gas companies to lower costs, tweeting that they “shouldn’t pad their profits at the expense of hardworking Americans.”

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