I am trying to figure out just why the cost of gasoline is so volatile. On December 30, it was $2.129 per gallon at the place where I usually get it. The next day--December 31--it had suddenly spiked to $2.379 per gallon. That is a 35-cent increase--in just 24 hours! What is going on, anyway?
It's volatile in my state also; prices fluctuate between $2.45 to $2.79 on an almost daily basis. What gives?
Are you in one of the states with tax increases? Check this link: https://landline.media/fuel-rate-changes-in-six-states-in-effect-for-2020/
Summer blend gasoline, winter blend .. It's the same thing with cigarettes and hostess twinkies it fluctuates
I can't remember a time of sustained price stability since... honestly can't remember. Seems like a pretty volatile market.
There are layers of hedging by companies in the fuel industry, intermarket derivatives (swaps), and other trading factors going on behind the pump price of gasoline. Hedges cost money, carry costs and other, periodically, and those costs end up quickly in the pump price, can cause fluctuation around a baseline that seems inexplicable when they aren't factored in. https://theoptionsguide.com/gasoline-futures.aspx The above market factors are often excluded from the basic factors http://www.financialnut.com/how-are-gas-prices-set/
You ain't seen nothing. As a semi-truck driver, I was at a truckstop on Sep. 11, 2001. There was an employee at the phone all day. The fuel prices were being changed from moment to moment.
Market price for both oil and gasoline changes quickly. There's also more demand just before weekends and holidays, which raises the price.
~ California is the "tax me" state. Gasoline tax is about 50 cents. Here in Los Angeles the price fluctuates about 40 cents a gallon. Go figure ... ´
That is certainly a reasonable suggestion. However, there was none. I am wondering if it was simple profiteering--the price has gone down today to a mere $2.169 (or just four cents per gallon more than it was only three days ago). Perhaps some local distributors simply wanted to take advantage of the New Year's eve and New Year's Day traffic?
You are probably correct. But this begs the question: Would this be the case if it were not for the widespread existence of a practice commonly known as "profiteering"--in other words, charging all that the market will bear, rather than settling upon a fair price?
I wonder how local gas stations price their products. It's probably worth looking into. I wonder if the product belongs to the supplier until it is sold to the end user. Also... Do you complain about their loss of profits when the price drops?
Good idea. Georgia use to have one on the lowest state gas tax some 20 or so years ago at 6 cents I believe. Then it was raised to 18 cents then to 26 which is now at 35 cents.
