When Oil Prices Drop, Why Do Gasoline Prices Stay Elevated?

Brooke Hathhorn and Michael Owyang

On the Economy from Federal Reserve Bank of St. Louis

Abstract: Why do gasoline prices rise quickly but fall slowly when oil prices drop? Learn the economics behind the "rockets and feathers" effect on pump prices.

Keywords: oil prices; gasoline prices (search for similar items in EconPapers)
Date: 2026-08-11
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Persistent link: https://EconPapers.repec.org/RePEc:fip:l00001:103635

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