What Is Making Gas Prices Fluctuate?
The simple answer is supply and demand, but there is much more to it.
With gas prices going up so high, then coming down so a low price. One has to wonder if it is controlled by someone. Most people blame the President, but really he has nothing to do with it. I'm sure the President would love to keep it low.
According to Christian Science Monitor, here are some reasons:
- Gas prices rise when oil prices rise, and fall when oil prices fall — except when they don't. What you pay at your gas station depends on an array of factors, from what happens on an exchange in New York to what the competition is charging. If the comepetition decieds to raise the price, it goes up, because everyone follows.
- This is an interesting face, there is a summer grade and a winter grade, the winter grade is cheaper and so prices go down for the Christmas season, that is why when we get to Summer it seems to always go up to some extent.
- Supply and Demand-More people drive in the Summer so the gas price goes up. It has a lot to do with the oil prices for supply and demand, but if there are a lot of people using gas, the price goes up.
- Location, Location, Location-Prices are affected by where you live in the United States, some areas just charge more, some are affected by how far the gas is brought in from the refinery.. Some are affected by taxes on the gas.
- Maintence-Demand starts to go up in the spring and most refinerys are shut down for general maintence and/or cleaning. Who knew that a general cleaning could affect the pirce of gas.
What I'm reading out of all this is that the price does not go up because some tycoon wants to make more money. War isn't the reason either. Least of all the President or Congress. However, if those that sell oil raise the prices, there is a direct effect.