Refining capacity doesn't increase because of a drop in crude oil prices. If supply of gasoline cannot be increased, prices will not fall even if the raw crude price falls.
The EPA has been hostile to refinery expansion or new refinery construction.
The EPA has been hostile to refinery expansion or new refinery construction.
Now, obviously price is only partly determined by cost.
Free markets y'all.
Some oil is $1 a barrel to pump. It will always be worth pumping.
Some oil is $50 a barrel to pump. It is only worth it when oil price is greater than $50 a barrel.
Two refineries have opened in the US this year:
Also, since we can not export crude, but can export distillates, we can sell gas to other countries, increasing demand to some extent.