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Why gas prices aren't dropping

February 22, 2009

Re: "Crude oil slides below $35 a barrel," Feb. 18:

I realize that compared with the $787-billion stimulus bill President Obama signed into law or the $22 billion Chrysler and General Motors now say they need, paying a few pennies more each week at the pump doesn't seem like a big deal.

Except for one economic fundamental: As the cost of crude keeps falling, shouldn't the price of gasoline also be dropping?

The good news is that the average price of a gallon of regular gas is nearly $1 less than it was a year ago. The bad news is that refineries have cut production, thus creating price increases at the pump.

Denny Freidenrich

Laguna Beach

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