RW, if it cost retailers 2.00 to buy the oil from suppliers and the markup cost comes to total of 3.00 (just for sake of this argument)
If oil prices rises wouldn't the cost for retailers to buy also rises? Which means instead of paying 2.00 they are paying 3.00 and the oil are 4.00 a gallon.
So, if they are buying at 2.00 and selling at 4.00 there no way they could be doing that. If that really goes on my brother would be doing that with food when he sells bread to grocery stores. When the price for consumers changes so does the price for the suppliers to buy.correct? I remember on local news that some gas station ran out of gas because the owner didn't want to buy the oil that high.
So, how is it lagging because the price already occur?