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A Fox Business alert nymex crude.
Barely moving today settling at 94 dollars 95 stance -- sense still that is down sixteen point 7% from its recent high of a month and a half ago.
In the meantime AAA telling us that the national average price for a gallon of regular gasoline is now three dollars 69 cents.
Down seven and a half percent from its high in 2011 of 399.
How many times and yes -- -- so why is the drop in gas prices just half -- the percentage drop in oil prices are we ripped off.
Let's ask Andy -- values president what -- oil associates.
And we have to go through this regularly because we get more email hosts about this subject and any others.
Bill O'Reilly goes on screaming rants about it say it's all -- perceive the oil companies what are you say.
-- -- well let's talk about that you're right oil prices here are down 17%.
And that represents about a third of the oil that we consume and the refineries.
The other two thirds is coming from offshore and those prices are actually only off 9% since the beginning of may.
Now on the gasoline side yes they have been coming down slower because.
As you as we know the oil majors since 2008.
Have been divesting themselves of their -- -- assets.
So now the individual business man is the one who's controlling the price to the retailer.
I'll consider you're telling -- that the guy at the mini mart is the one now in control not the CEO of ExxonMobil or Chevron.
Exactly so let me give you some examples ConocoPhillips.
Has no retail stations they own nothing.
Exxon as you cross around the country they have about 121000 service stations that we -- fly the Exxon flag.
Of those 121000 service stations they own themselves may be a couple of hundred.
BP they fly the flag at about 111000 stations they've been divesting themselves of every bit of their retail outlets.
So we have the futures price the wholesale price and the -- price.
The oil companies have -- -- reducing their wholesale price and guess what the retailers have been slow to pass that on to the consumer.
But is there are no advantage for retailers to have some kind of connection with the oil companies or at least a refineries.
Well be a V retailers their connection is they get security of supply but once again they're paying the whole -- price.
That's a number of places around the country which we call on branded.
That they just go by in the spot market every day and you can see that their prices are much cheaper then that say.
The the regular major oil companies if you go to -- costs go -- Kroger you'll see that prices are generally less than a major oil company.
-- how about Safeco we should let people know -- is actually of Venezuelan operation Venezuelan government around at at or say for example lukoil which is Russian.
Well okay sit go and clearly that refineries are on by PD PSA but like the other major oil companies that most of the Citgo stations are -- by the local business men.
Lukoil is a company that has no refining assets here in the US.
They are just out there buying gasoline on the spot market crash and putting it through their terminals and racks to the whole it's only wholesaler and retailer Telus would be mad at Andy -- -- and we want to distribute at a well you know I know people want to be mad at the big bad major oil companies but in this instance you really.
Have to recognize the business has shifted and the pricing power if you will has moved to the local businessman who's trying to make some money.
And Andy -- crowd thank you very much candy good to see again appreciate it we'll tell Bill O'Reilly.