
Welcome to Money Moves. I’m digging into all things money — moves that can impact you, links and insights, and the one thing I can’t get off my mind.
What Happened:
We’re all feeling the dent in our wallets as the cost of filling up the tank remains sky-high. But while the average cost per gallon is hovering around $4, you might have seen the price of oil has fallen. It’s a contradiction that understandably leaves many drivers with some questions: Why aren’t the prices at gas stations reflecting that drop? And why do prices seemingly go up faster than they come down?
In the gasoline industry, they have a phrase for this phenomenon: Rising like a rocket and falling like a feather.
Why It Matters:
Hmmm, that feels a little unfair. But the price of oil is only part of the story. Sure, oil accounts for the majority of the price we pay for a gallon of gas, but many other variables (inventory levels, regulations and taxes) also impact the price difference between oil and gasoline. For the past year, the gap between oil and gas has been largely due to supply vs. demand — with higher demand and lower gasoline inventories.
But wait, there’s more. The cost of compliance and environmental regulations are at record highs, the price of corn (used to produce ethanol, another common ingredient in most gasoline) has skyrocketed and increasing state gas taxes also impact how much you pay.
All of this is happening as the war in Ukraine broke out, further impacting supply challenges. And now the summer driving season is upon us, increasing demand and the cost to produce gasoline. As I said, oil is just one part of the story.
What It Means for You:
With lots of factors to consider, the reality is, that higher gas prices may not go away as quickly as we would like. That means it’s time to budget for higher spending on gas.
If you’re looking for a longer-term solution, you could ditch the gas line altogether and consider plugging into the electric vehicle (EV) market. While there are more than a few reasons to make the leap, 88% of consumers cite gas prices as an influencing factor for their next vehicle purchase. And while a new car is a big investment, remember many states offer tax credits for EVs, and it’s an expense that will get you off the roller coaster ride that is gas prices and likely help you save in the long run.

Is it just me or is the saga with Twitter and Elon Musk shaping up to be the next Barbarians at the Gate? Whether Musk takes the social media company private or not, his actions have put the company in play to be sold or acquired. Twitter has hired JPMorgan and Goldman Sachs to represent them. And private equity firms like Apollo Global are already offering to provide the cash for a transaction. The big tech companies have thus far been silent on their interest in pursuing a deal with Twitter, but you can bet they are doing the math.
In other words, just like in the days of RJR Nabisco, this could turn into a bidding war between the wealthy. I wonder who will turn this saga into a miniseries?
Let me know your thoughts below!

Check out what else we’re reading this week.
- Could a post-pandemic return to office be an opportunity for women?
- Need financial inspiration? Check out my friend and peer Jack Howard’s My Money Story.
- Green your portfolio for Earth Day with an ESG investing strategy.

Have comments or questions? Post a message below.

Lindsey Bell, Ally’s chief markets & money strategist, is an award-winning investment professional with a passion for personal finance and more than 17 years of Wall Street experience. Bell’s unique ability to connect the dots between data and real life and craft bite-sized money ideas that people can use and apply stems from her deep background as an analyst, researcher and portfolio manager at organizations including J.P. Morgan and Deutsche Bank. She is known for demonstrating why and how an understanding of all things money improves a person’s finances and overall well-being. An ongoing CNBC contributor, Bell empowers consumers and investors across all walks of life and frequently shares her insights with the Wall Street Journal, Barron’s, Kiplinger’s, Forbes and Business Insider. She also serves on the board of Better Investing, a non-profit focused on investment education.
Comment on this article
Comments
Kathryn Z. on April 22, 2022 at 12:55pm
You are right about Elon Musk. He says he believes in 'free speech', but destroys anyone in his business or professional life who dares to question him. He is, like Trump, vengeful. He destroys the reputation and income of anyone who challenges him. A horribly dangerous person.
MJ M. on April 22, 2022 at 1:07pm
Elon and the Twitter saga is just starting. Twitter is very Global, and it opens so many avenues for civil discussions about issues that Americans have never heard of. It is an education to read and usually gives clues in why people have the opinions they have. Elon has to realize that the ads must carry Twitter. He misjudges how much money the Twitter group have to spend on memberships, use fees, etc. Jack Dorsey got it right in a lot of ways. Elon will lose a lot of people if he changes Twitter to a fee gateway. Facebook is not a place to learn anything; Twitter is lush with ideas, humanity, the rich and the poor. the good and the evil.
Rob on April 22, 2022 at 1:07pm
Twitter is currently a disaster as presently constituted. It was a great idea, but bad ideas have turned it into a bad investment. I welcome Elon Musk’s direction. he potentially can turn the company around. I would hope my funds don’t invest in Twitter unless they do come under new management.
Kathryn Z. on April 22, 2022 at 1:58pm
I am not surprised that gas prices come down slowly, given that energy companies main goal is to maximize their profits. I have a robo account with Ally, and I called to inquire about changing from a core conservative to an account with ETF's more focused on gold, and other metals used in the manufacture of electronic devices. I was told I would have to open a self-directed account to do that. Why? I can't be the only small investor unhappy with the decline of bonds in a market where the Fed is focused on controlling inflation. Still, since I know practically nothing about investing, I am reluctant to go with a self-directed account.
lawrence c. on April 22, 2022 at 2:09pm
Send copies to all the congressmen/woman delivered by Sergeants in Arms to force them to listen while being read............
Barbara501 on April 22, 2022 at 2:43pm
Thank you for sharing your information.
Bernard T. on April 22, 2022 at 2:50pm
The real reason is quite simple, the large refineries have for years played this game with the public on both ends of the curve setting prices up on the first up tick on oil and keeping them there even even oil is going down. Congress will not challenge them on either side because of too many lobbyists. Time to end subsidies with BIG OIL.
Tim on April 22, 2022 at 7:42pm
Most people don't realize the commodities market (part of the stock exchange) has more effect on prices than do the oil companies. Speculators buy yet-to-be-produced fuel (gasoline and diesel), in hopes the price will go up so that they can make a profit. Prices only go down when they are "left holding the bag" and others are selling at a lower price than they are, hence the "drop like a feather" effect.
tim on April 22, 2022 at 10:45pm
Either free speech and the 1st Amendment is respected in all aspects of a democratic republic's social life or it does not exist at all, for anyone. Tech tyranny and Communist authoritarian censorship by the liberal establishment MUST not prevail or we are all dopomed!
Mike C. on April 26, 2022 at 2:11am
If Russian oil only accounted for 3% if the oil imported in America before the Ukraine war even started then how can it possibly have that big of an impact on oil prices once the war started and continues to unfold?
Don C. on April 27, 2022 at 9:03am
YOU FORGET TO MENTION SHUTTING DOWN OUR DOMESTIC SUPPLIES
customer on April 29, 2022 at 2:41pm
i should not see articles like this under my auto load summary
Fructuoso T. on April 29, 2022 at 9:50pm
I trying to see what’s my pay off but the app don’t let me. Can you send my pay off so I can send the money to Ally. You can send it to my email : fructuoso_t@yahoo.com
Ally on April 29, 2022 at 9:51pm
Hi, thanks for reaching out. Please give us a call at 1-888-925-2559, so we can assist further.