Written by: Nolan T.
Gas is something that everyone needs but why do the prices fluctuate so much all the time? When you stop to get gas in your car you might see the price at $2.37 not think or care about the price and the next time you fill up it's $2.72.
Gas prices change all the time due to supply and demand of when the gas is needed. According to the US Energy Information Association, “Gas prices can change quickly if something happens to crude oil supplies, refinery operations, or gas pipeline deliveries. Even when crude oil prices are stable, gasoline prices fluctuate because of seasonal changes in demand and in gas specifications.”
Changes in supply and demand change because of time of year, holiday travel, and adverse weather. For example, the price of gas on a holiday weekend like Memorial Day weeked goes up because more people are tending to go on long roadtrips and going places. According to Dichistophore in a CNBC article from 2019: “It’s a similar setup to last year’s holiday weekend. Gas prices surged at the start of the year [2019], but didn’t climb high enough to keep many Americans off the road. Still, they’re well above levels in 2016 and 2017, when a depressed oil market gave motorists a big break at the pump”. This shows that gas is being used more in the holiday seasons.
During the summer gas prices are influenced by two important factors. The first is that a different formula is used because gas tends to evaporate faster. According to energy information administration, ”refiners must replace cheaper but more evaporative gasoline components with less evaporative but more expensive components.” This proves that gas is more expensive during summer and travel. A second factor is that people travel more so there is a bigger demand for gas. When gas is known to evaporate and it costs more for a better formula and there is a bigger need for gas in summer because of travel it influences the gas prices to change. Both factors work together to increase the price.
Gas prices tend to change because of the weather. When there is a hurricane or a big storm in the Gulf of Mexico the oil refineries can’t pump oil, so the prices go up. Also everyone trying to leave when there is a hurricane increases demand for gas. This could cause gas to become limited, so the price goes up. As ABC news said”- Opportunists looking to profit off superstorm Sandy are advertising gasoline for as high as $20 a gallon on the black market after the storm crippled the ability for some tankers to pump gasoline and deliver it to stations in the Northeast, some of which are still powerless.” This is an example of extreme weather affecting gas prices.
Although the 4 things said affect gas prices, there are many more. In winter it could cost a little less because the formula but it could also go up because extreme weather in texas that shut down refineries multiple factors contribute to fluctuating gas prices.
Folger, Jean. “How Gas Prices Affect The Economy.” Investopedia, Investopedia, 3 Feb. 2021, www.investopedia.com/financial-edge/0511/how-gas-prices-affect-the-economy.aspx.
Cnbc. "ENERGY Soaring gasoline prices peak just in time for Memorial Day weekend." CNBC, ENERGY Soaring gasoline prices peak just in time for Memorial Day weekend.
Eia. "Gasoline explained." Gasoline explained. eia, www.eia.gov/energyexplained/gasoline/price-fluctuations.php#:~:text=Seasonal%20demand%20and%20specifications%20for,generally%20lower%20in%20winter%20months.
This blog piece is a lot better than your old one. I liked the visual you gave and how it fits with your topic. How has this topic affected you in your daily life?
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DeleteNolan, this was so interesting to read and I can confidently say that I learned a lot! I did know that gas prices went up around holidays, but I never knew why the price fluctuated so frequently on an everyday basis. I never knew that gas could evaporate during the summer,but when I think about it now, it all makes sense! Thanks for explaining this! Well done.
ReplyDeleteI think that this piece on gas prices had a lot more good information compared to the first one. I liked how you choose 4 specific reasons that gas prices either go up or down and then you took each one and broke it down further to make sure we as readers really understood why at one time of the year we are paying more vs another. I didn't know that gas prices can be more expensive in the summer because we have to use a different type of gas compared to the winter. Overall I thought that your blog was informational and can make students more aware as to why we might be paying more and good times during the year to stay off the road, such as the hoildays because we will see high prices.
ReplyDeleteI didn't know that gas prices fluctuate depending on the season and Holidays. I thought they would fluctuate because of the demand of the gas.
ReplyDeleteI learned a lot from this blog post! Most of us don't tend to pay much attention to how gas prices change and how those can be influenced by something as normal as the seasons. I feel like this is something that more of us should take into consideration when planning our weekly expenses. Is there a way to know how by how much gas prices will rise depending on the season?
ReplyDeleteIt was very interesting to see how and what changes the price for gas. Gas is such a simple necessity but it seem to be very complex in terms a transporting and pricing. I wounder how far in the future we can expect to see absolutely no gas powers cars on the roads. As this slowly starts to happen will the price go down as the demand for gas falls?
ReplyDeleteI think its kind of scary with how summer usually brings higher gas prices, which means the gas prices are likely to increase soon which is scary considering how high gas prices already are now compared to a year ago where it was just under two dollars and now its getting close to three dollars per gallon.
ReplyDeleteObviously I've thought about gas price fluctuations before and I know a lot of it has to do with oil pipelines economic standing and location etc. but something I didn't know was that there is actually a change in gas prices because of the way it is made. I didn't know that the gas I put in my car in the winter months is different than the gas I put in my car during the summer months. It's very interesting to look at the prices of gasoline throughout recent years as well. Thinking about all of the different factors that go into determining the price of a gallon of gas is interesting to because it is certainly a finite resource.
ReplyDeleteWow! Reading this after reading your original I feel like I have learned a lot more! As someone who drives to and from places almost every day I feel as if I should be paying more attention to gas prices and if I'm driving around the holidays that I should maybe wait for them to pass before filling up my tank. I also didn't know why gas was more expensive in the summer! I feel like I should've known these things so thank you for alerting us about why gas prices can fluctuate so much.
ReplyDeleteI never thought about the reasons why the gas prices changed. I only ever focused on how much they changed. Personally, I have only filled up my car’s tank about 4 times since I got it last year. However, I did still experience these price fluctuations. This is a really interesting topic, and a well thought out blog.
ReplyDeleteI never really thought about why gas prices fluctuate so much, but after reading your writing piece I now understand why they can fluctuate so much. On top of changes to companies, gas pipelines, etc. that can change the supply and demand of gas, I never really thought about how seasonal usage can affect supply and demand of gas too, and affect the prices. I also never realized gas prices go up on Holiday weekends as they expect many people to be traveling, which is extremely smart and something I’m sure most people are unaware of. Also, gas prices are expected to increase during travel, so summer, spring break, etc. the gas prices are likely very high as people will be out of their house and driving more than usual. Your piece was extremely informative and insightful, and I love the choice of topic as it’s really unique compared to most pieces.
ReplyDeleteI always see the gas prices changing but have never thought about the causes of this. Learning about the different influences on gas prices was very interesting and important to learn about. I totally agree that most people just look at the price and pay for the gas without thinking about why the gas price may be the price it is. I never thought that the weather could have an influence on the prices of gas but now understand why this occurs. I definitely will think more about gas prices and why they are changing because of reading your blog! Great job!(Ally Longden)
ReplyDeleteI think part of the reason that gas prices have gone up is because we are starting to stop fracking in the US, and are going to be buying oil again. Which we have to pay for, making the gas price start to go up because we have to pay to bring oil into the country. People might not realize it up the price might reach $3.00 this summer.
ReplyDeleteThis is something that I believe is overlooked a lot, for example, I never paid attention to the amount per gallon, but I do realize when the overall total is more or less than usual. This blog is very informative to explain why, and helped me understand more on why the gas prices fluctuate so much. I also know that part of the reason the gas prices go up is because we have to pay to bring oil into the country. Meaning that they will still continue to go no matter the fluctuate of it going down. Overall very well written and informative blog.
ReplyDeleteI enjoy how you are talking about how gas prices are slowly increasing from natural resources of oil being used up and its crazy to belive it might be 3$ or more just for 1 gallon of gas in the near future
ReplyDeleteThe only thing I liked about the pandemic was how cheap gas was, but as we start to open up more, those prices are going to rise as we've already seen. Gas is something that many people cannot go without. With other goods and services, if they get too expensive people might choose to go without those things, but for many people going without gas is simple not an option. I think gas prices are overlooked and more people should understand why the prices fluctuate as much as they do.
ReplyDeleteThis was really interesting, I never knew that gas prices changed because of their formula. Also, I thought that the cancellation of the Keystone Pipeline addition would have made gas much more expensive, due to companies being forced to transport gas via ship.
ReplyDeleteGas is a unique product, because no matter the price (within reason) people will still buy it (inelastic). So what impacts those prices are very important, because the money will be spent no matter what.
ReplyDeleteGas is interesting since its input changes seasonally. When more expensive materials are used in processing it, it obviously will be more expensive. I knew that gas prices could change exponentially due to some sort of accident, but I didn't think that hurricanes going through the Gulf would affect it nationally, and by that much. Thinking on it now though, I guess it makes sense since most of our oil is obtained there, and considering that hurricanes can last weeks.
ReplyDeleteGas is a resource that is pretty hard to get more of considering what it's made of but is very crucial to daily life. We should probably look into alternatives before things get too expensive. Driving would less of a hassle of gas was just cheaper and cleaner!
ReplyDeleteI found this blog to be very interesting! I always look at the gas price when I get gas & noticed that is changes so often & I never knew a real reason as to why. I understand why they change so often now but what about two gas stations a couple miles away that have different prices, any real reason or is it just competition with each other?
ReplyDeleteI've always wondered why gas prices always change, which you later explained but when the president was finally elected for president and I remember alot of people just blaming him for the gas price changes to more than it was before. Do you think the president had anything to do with the change in prices of gas?
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