Why Do Gas Prices Change so Frequently?

How many of you are like me and tell yourself you can wait to get gas the next morning but then kick yourself when the price of gas jumped up $0.20 over night? Why does the price of gas change so much? Well there is a perfectly good explanation for that!

According to the U.S. Energy Information Administration, the reason why the price of gas changes so much is because of supply and demand! "Strong and increasing demand for gasoline and other petroleum products in the United States and the rest of the world can place intense pressure on available supplies."

Seasonal demand and specifications for gasoline also play a factor in the price changes! In the Spring and Summer gas prices gradually increase when people tend to travel more. The Winter months are normally when the price of gas is the lowest. The formula and specs for gas also changes seasonally. Gas sold in the summer are less prone to evaporation. According the EIA, from 2000-2018, "the average monthly price of U.S. retail regular-grade gasoline in August was about 35 cents per gallon higher than the average price in January."

Next time you see gas for $2.29 a gallon, you may want to consider filling up if you need to or else the gas at same station could be $0.20 more the next morning!