Car News Articles 
 Driving Economically (174)
  Gas Mileage (107)





Driving Economically

Nov 2, 2006 - 8:48:00 AM - Print

What Makes Gas Prices Change?

Gasoline prices change for many reasons. Many factors may cause gas prices to go up or down, even if crude oil prices remain stable.

Seasonal Demands For Gas

Gas prices usually rise in the late spring and summer months because the demand for it is greater. During the summer months people drive more, they get out in the good weather, they go on vacation. It can go up ten to twenty percent in the warmer time of year.

In winter gasoline prices usually go back down. Not many people are driving like they do in the summer so the demand is less.

Supply and Demand

If the use of gas powered vehicles increases the demand for the fuel goes up. Usually when this happens it causes cost increases because of the extra production costs involved in supplying the product. The refineries have to work more to increase the supply, tankers and trucks work more to get the gas from the refineries to the gas stations.

There are no options for consumers to replace gas with, so we must pay the higher prices, because we are not able to switch to another type of fuel.

Crude Oil

Usually when the cost of crude oil goes up, so goes gasoline. Since it comes from the refining of crude oil, if the base product costs more, so will the products produced from it. Crude oil prices can depend on many things, such as production cuts, wars , problems with refineries or pipelines, political problems in oil producing countries and weather as we saw last year with the heavy hurricane season.

If OPEC (Organization of Petroleum Exporting Countries) cuts oil production it greatly influences the world gasoline prices and supplies because the countries in OPEC make up for at least forty percent of the worlds oil production. Most of the world's oil supply is found in the countries belonging to OPEC.

Only about 35 percent of the gasoline we use comes from the United States. We rely heavily on foreign oil for most of our gas supply. We are, therefore, at the mercy of many outside influences when it is determined what our gas will cost.





comments powered by Disqus


Related Articles:
Don't Let Return Charges On Your Leased Car Put A Dent In Your Wallet
Five Ways To Get Real And Consistent Savings At The Pump
How Older Drivers Can Cut Vehicle Costs
Squeeze More Savings Out Of The Gas Pump This Summer
Driving Smart Can Mean Significant Savings At The Gas Pump
Get Better Gas Mileage With New Technology
Adapt Your Vehicle And Driving Habits To Combat Rising Gas Prices
Stop-Start Systems In Vehicles Substantially Reduce Fuel Consumption And Air Pollution
Earth Talk: What Is The Status Of Higher Fuel Efficiency Standards For Cars?
Hot Tips For Getting The Most Out Of Your Vehicle In The Cold Weather
Tips For Driving Smarter
New Engine Gives Resources A Big Boost
Slowing The Gas Price Roller Coaster
Make The Pinch At The Pump Less Painful And Enjoy Driving
A Gallon Of Gas Can Go A Lot Further Than You Think

sdg
sg
?????????


Stay Updated!


Driving Economically
Related Articles
Simple Steps To Save Gas
Facts About Fuel Ratings
Six Ways To Reduce Fuel
How To Improve Your Vehicle’s
Fuel-stretch Tips To Maximize Your
Don't Let Return Charges On
Five Ways To Get Real
How Older Drivers Can Cut
Squeeze More Savings Out Of
Driving Smart Can Mean Significant
Get Better Gas Mileage With
Adapt Your Vehicle And Driving
Stop-Start Systems In Vehicles Substantially
Earth Talk: What Is The
Hot Tips For Getting The
Tips For Driving Smarter
New Engine Gives Resources A
Slowing The Gas Price Roller
Make The Pinch At The
A Gallon Of Gas Can


Feed Button



Car Insurance Info | Newsletter | Car Classifieds | Online Car Rentals
Auto Pictures | Link To Carjunky.com



Complete List of Article RSS News Feeds


Copyright © 1999 - . CarJunky® All Rights Reserved.