What Causes Gas Prices to Change?
There are several reasons why gas prices change. To help you have a better understanding why you pay what you do, here are some items that cause fluctuation in prices
- There is a seasonal demand for gas. Gas prices rise in the late spring and summer because there is a greater demand for it. When summer comes around, people are driving more and take more trips. Gas prices usually go up 10-20% during the late spring and summer when it starts to get warm.
- Supply and Demand. When more people start using gas powered vehicles, the demand for fuel will increase. When the demand rises it will result in the increase of cost because more fuel needs to be produced. Oil refineries are working more to bring the extra gas to you. Gas tankers or trucks will make more trips to fill up the gas stations.
- Crude Oil. When crude oil prices rise, so do the prices at the pump. Gasoline comes from refined crude oil. Crude oil prices can be affected by cuts, wars, refinery or pipeline problems, political problems, and weather. Much of our crude oil supply comes from countries that are in OPEC; only 35% comes from the United States. Since we rely more on foreign supply we can't do too much
