What are the factors that cause gas prices to rise?


Quick Answer

Factors that cause gas prices to rise include rising oil costs, the demand increasing and the supply decreasing due to declines in production. Gas prices also rise during the summer season, as gas stations sell summer blend gas, which is a more expensive type of gas.

Continue Reading
What are the factors that cause gas prices to rise?
Credit: Jeremy Hudson The Image Bank Getty Images

Full Answer

Gas comes from crude oil, so increases in the cost of oil cause increases in the cost of gas.

The demand for gas tends to increase during the summer, as motorists drive their cars frequently. During the winter, motorists drive less often due to cold weather and poor road conditions. Summer blend gas is more expensive because it produces less smog. Gas stations typically sell this type of gas from June until mid-September, although in certain states it's sold for longer periods of time.

Gas refineries usually perform maintenance during the spring and fall. This reduces production, and the limited supply causes a price increase. The prices increase more in the spring, as the limited supply combines with increased demand due to the weather and a transition to summer blend gas.

Natural disasters can also increase gas prices by reducing production. For example, hurricanes and tropical storms affect refineries located in that area. If the area loses power, it's unable to transport gas to other areas through pipelines, which reduces the supply in those areas.

Learn more about Geography

Related Questions