What Causes Gasoline Prices to Increase?


Quick Answer

Gasoline prices mainly depend on crude oil prices and the weather. Crude oil prices reflect the supply and demand of crude oil. When the crude oil supply is high and can meet the demand, its price tends to be low, resulting in lower gasoline prices.

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Full Answer

If the supplies of crude oil is at risk, such as during unstable political situations in the Middle East, the lower crude oil supply drives up the crude oil price and increases the gasoline price. The demand for gasoline is higher in the summer as people tend to drive more in the warm weather, and this increases the gasoline price. In addition, the summer blend of gasoline produces less smog and is more expensive than the regular winter blend of gasoline.

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