Economic Facts: Different Reasons Why Gas Prices Fluctuate

When gas prices spike, many people avoid filling their tanks for as long as possible—but lines at the gas station couldn’t be longer once prices drop. Many people also wonder why prices rise and fall, especially when there’s theoretically plenty of gas to go around.
Understanding why gas prices constantly change is important to individuals and specific business-owners. Jobbers, for example, need to know the key elements to pricing fuel, which means predicting gas prices before selling to transportation-based companies. Uncover the truth on the different reasons why gas prices fluctuate here.
Supply and Demand
Supply and demand affect various areas within our economy since they’re two of the many factors that dictate prices. During spring and summer, gas prices tend to increase since more people need it—as people plan more daily excursions or take road trips, they stop at gas stations more often, causing prices to rise. However, fewer people are on the road during the fall and
The gasoline blend used in the winter also differs from the one needed in the summer due to fluctuating temperatures. In the winter, it has a higher Reid Vapor Pressure (RVP) to lessen the risk of it evaporating; contrarily, the RVP remains lower in the summer, which is more expensive.
The Value of the Dollar
When gas prices are high, chances are the US dollar has a lower value at that time. This is partly because the US is among the world’s largest producers and exporters of oil. By understanding how oil and currency rates relate, you can better predict gas prices.  
Crude Oil and Gas Prices
Another one of the different reasons why gas prices fluctuate is crude oil supply. This isn’t quite the same as supply and demand economics. Countries worldwide demand oil—which drives prices up—and exporters must extract it from underground reservoirs. If there’s trouble with extracting and exporting oil or with producing gas, then you’re likely going to notice spikes at the pump. However, if shale producers discover a large oil deposit, prices should drop since there’s more to go around.