What happened to big savings at the gas pump?

[mystery-ak]

http://www.cnbc.com/id/102477074

What happened to big savings at the gas pump?
John W. Schoen   | @johnwschoen
Wednesday, 4 Mar 2015 | 2:31 PM ET

 Some big savings at the pump seem to have gone missing.

The plunge in gasoline prices has generated a windfall for American drivers. But so far, there's little evidence those savings are producing a widely anticipated boost in consumer spending.

So where is all that money going?

There's no question the sharp drop in pump prices since last summer means a much smaller bite out of consumers' wallets. Though fuel prices have bumped up a bit, they're still some 30 percent lower than the five-year average cost.

Even though prices didn't fall until late last year, Americans saved some $14 billion on gasoline last year, or an average $115 per driver, according to estimates from AAA. The group figures if pump prices stay tame, those savings could amount to as much as $75 billion this year.

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[alicewonders]

Well, part of it is that we're waiting for the price of food to come back down - I mean, when gas prices went up so high - they raised the price of food because the transportation costs went up.  How come the prices never come back down?

[Dexter]

It's all being controlled artificially.

[truth_seeker]

It's all being controlled artificially.

Really? How precisely do they do that? Who are they? Why do they do it?

[jmyrlefuller]

Well, part of it is that we're waiting for the price of food to come back down - I mean, when gas prices went up so high - they raised the price of food because the transportation costs went up.  How come the prices never come back down?

Drought drove up the cost of beef.

Diarrhea has driven up the cost of pork.

The cold winter in the south and the continuing drought in California has driven up the cost of just about everything.

Basically, we have seen supply declines in almost all the major food groups.

[Oceander]

It's all being controlled artificially.

[mountaineer]

The price per gallon jumped about 20 cents recently. According to some news reports, it was due to troubles at one California refinery. Really? One refinery has that much power?   

[jmyrlefuller]

The price per gallon jumped about 20 cents recently. According to some news reports, it was due to troubles at one California refinery. Really? One refinery has that much power?   

There's never been all that much slack in refinery output, so indeed one refinery can have at least a noticeable impact, but I think the bigger factor is the annual shift from winter to more expensive spring/summer blends that always happens this time of year.