Gas Junkie - Gasoline Prices Questions

Question: what determines gasoline prices?

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Answer #1:

The Free Market (Supply and Demand).

If nobody is buying gasoline, the price falls until somebody does.
If everybody is buying gasoline, the price rises.

This back and forth is what establishes the price of gasoline.
As well as the price of Oil dictates the price of gasoline.

Answer #2:

The cartel called OPEC. And the works behide the cartel are done by big companies like BP, Esson, Shell etc.

Answer #3:

Actually, gasoline prices at the pump are usually determined by the distributor. Gas accounts for a large part of most gas stations' inventory. They usually have to pay in advance. If crude oil prices change, then, distributors want their service stations to raise their prices immediately to make sure that they can afford to pay for their next shipment of gasoline.

Why crude oil prices changes is more complex. OPEC controls production and changes in supply can occur, as can changes in refining capacity (like when a hurricane forces the refineries in Texas to shut down). In addition, speculators and traders in the crude oil markets can manipulate the price if they control enough of the future contracts and options.

Answer #4:

Broadly speaking, supply and demand.

The price and availability of oil.

Also, oil speculators.





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