What Are Some Factors That Influence Shell Gas Prices?


Quick Answer

The Royal Dutch Shell Oil Company's gas prices are based on supply and demand, which are influenced by factors such as natural disasters, economic conditions, operational issues and oil-producing countries, notes a 2014 annual report provided by the company. These factors can result in gas prices varying in different parts of the country.

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Full Answer

Generally, mild weather in an area will result in low gas prices while more extreme weather will raise prices. The federal tax on gas is fixed throughout the country, but each state sets its own state gas tax, as of 2015. Different areas of the country require different gas formulations, which come with different costs. Other factors that influence The Royal Dutch Shell Oil Company's prices include production rates, exchange rates, distance from the source and marketing, notes Business Insider.

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