Fuel Prices............WHY ??
Gas prices have dropped nearly a dollar in our area..........and diesel has dropped about 10 cents.........why hasn't diesel prices maintained the same decreases as gasoline? Brian
Forum Discussion
Inelastic demand is the big driver. Diesel consumption in the US is primarily from commercial trucking. The demand is there regardless of the price, therefore inelastic demand. Raising the price does not decrease demand, reducing the price does not increase demand. Therefore no increase in sales with a price reduction, so no advantage to the producer.
