What Are Some Factors That Cause Gas Prices to Drop?


Quick Answer

Some factors that influence gasoline prices are supply and demand, seasons, weather, and refinery problems, states the Christian Science Monitor. Physical location and taxes also affect the price of gasoline but are rarely responsible for wide fluctuations within a static geographic area.

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What Are Some Factors That Cause Gas Prices to Drop?
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Full Answer

Supply and demand is cited as being most influential in determining day-to-day prices. An increase in domestic crude oil production combined with more fuel efficient vehicles is one common formula for a decrease in prices at the pump. Seasonally, many states utilize a less expensive winter blend during cold weather months and a pricier summer blend during warmer seasons, notes the Christian Science Monitor. Weather often factors into consumers' decisions to travel which affects supply and demand models as well.

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