Monthly Archives: May 2019

What Determines Gas Prices

What Determines Gas Prices

Gas prices always seem too high and most people find themselves driving around town to find the cheapest price. Everyone loves to save at the pump. There are a few different smartphone apps that help and show you which gas stations have the lowest price. Gas prices jump or drop every day but who sets that price? Have you ever thought to yourself “what determines the price of gas?”  We as consumers like to blame the big oil companies, refineries, or the distributors for the high gas prices. While they absolutely do contribute to the overall price, there are many factors that determine gas stations price.  Location is a factor. If a gas station doesn’t have competition and is closer to the highway or an area where many commutes, they often charge a higher price. If there is a competitor that can drive the price up or down, most likely down. The competition gas stations want the lowest price to draw in the most customers. Owners will go out at least twice a d ... read more

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