After just one point and no goals from two matches, they were given an easy ride at the Etihad Stadium on their way to opening up a cushion over their neighbours, who will try to reduce the gap again at Newcastle on Wednesday.
Despite their recent wobble Roberto Mancini's side are still a formidable force, especially at home, and they extended their 100% home league record this season to 10 matches and made it 55 points out of a possible 57 at the Etihad Stadium in the last year and three days.
It was only the second time this season Liverpool had conceded more than one in a league match - and their worst result since losing 4-0 at Tottenham in September - but it could easily have been more.
Sergio Aguero and Yaya Toure did the damage in the first half after benefiting from defensive lapses and even after Gareth Barry was sent off, City added a third with James Milner's penalty.
Mancini's side were fortunate to escape from Anfield with a 1-1 draw in November but this encounter was not even close as they recorded only their second win in 14 matches against the Merseysiders.
What's the score? A fan gets a pointed message across at the Etihad Stadium
Prior to kick-off Liverpool confirmed they would not be appealing Luis Suarez's eight-match suspension for racially abusing Manchester United defender Patrice Evra.
If this is what life is like without the Uruguay international then the Reds could be in for a difficult six weeks, although the quality of opposition will rarely be matched.
