Actually, reviewing your chart actually shows him to be right, if the statement you're arguing about is that consumer price rises faster than it falls. The chart shows gas price rises almost directly corresponding with the crude price, but falls almost always smooth and slowly.
I don't mean to rain on your parade, HTB, but the conventional wisdom seems to be true based on this chart. In fact, this makes the gas stations look even worse, because as prices stabilize at a higher level, their margin compared to the barrel price would seem to similarly stabilize and drop. This chart doesn't seem to show that at all (note the gap between red and blue shrinking and widening, mostly as crude price drops). Only when crude's in freefall do gas prices seem to drop relative to crude.
Again, this is simply based upon the chart you posted. Historically, you might be 100% correct.
Thank You but when the name calling began I cut off any more talk about it
Sorry but you might notice the spike began in 3/12 and prices rose for four periods before steadying out a bit.
However if you look straight across at the point where the red line appears at that point again in 8/15 you notice that it takes only three periods for the price to fall that same amount.
The price of gas fell in 75% of the time that it took to go up. Proving conclusively that prices do not rise faster then they fall.
but the conventional wisdom seems to be true based on this chart.
Actually it doesn't. In fact there are several places where there is a short spike in crude price that is not reflected in the gas prices. Consider for example the week of 4/17 where there is a small short spike in Crude but no corresponding spike in gas. Please point out ANY corresponding spike in gas that is not found in crude.
In fact, this makes the gas stations look even worse, because as prices stabilize at a higher level, their margin compared to the barrel price would seem to similarly stabilize and drop.
I am not sure what you are trying to imply here. Are you saying that as the price of crude rises that gas stations make less of a profit margin?
That might be true.