Is the oil company taking advantage of the situation

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An oil company refines crude oil valued at $62/barrel and sells it to motorist as gasoline at its retail centers at a price of $2.90/US gallon (1 barrel = 42 US gallons). A supply disruption causes the price of crude oil to increase overnight to $100/barrel. By the end of the week, gasoline is selling for $4.00/gallon. Is the oil company taking advantage of the situation? Would your answer be the same if the cost of gasoline increased to $5.00/gallon? Justify your answers.

Reference no: EM13707452

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