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This question raises the so-called “rocket/feather” phenomenon that is a common concern of motorists who believe gasoline prices go up like a rocket when crude oil costs increase and come down like a feather when crude costs decline.

Although experts have debated this topic for years, at least one study has concluded that gasoline and diesel prices generally track changes in crude oil costs.

Specifically, in 2003 the Energy Information Administration (EIA) took an in-depth look at price changes on the West Coast and concluded that, “[R]etail gasoline prices typically follow wholesale prices (which, in turn are driven by crude oil prices and other supply and demand factors) at virtually the same speed upward as they do downward.”

Further, the EIA reported, “The idea that prices ‘seem’ not to drop as fast as they rose appears to stem mostly from consumers having a keener awareness of prices when they are rising than when they are falling.”

Take, for example, what happened during 2008.  When the economy faltered midyear, crude oil costs fell dramatically. In the last five months of 2008, crude oil costs fell by approximately 68 percent.  In that same time frame, West Coast gasoline prices dropped about 60 percent.

In the five months between January 1 and June 1 of 2009, crude oil crude oil costs increased approximately 48 percent while gasoline prices increased roughly 44 percent.

All this information demonstrates that, while there are variations and anomalies, changes in gasoline prices generally tend to follow changes in crude oil costs.