Falling Gas Prices: Can It Last?

Factors that Affect Gas Prices

If you’e between paying attention, our gas prices have been doing all of us a faor lately. Yet, while most of us a pretty content to enjoy the added money in our pockets on account of the dip in gas prices, ery few of us actually know why they went down in the first place. So, to help you win an argument next time a coworker challenges your know-it-allness, we at Robbins Nissan are here to help. Here are fie factors that affect gas prices–most of which are working to our advantage right now. Gas PricesFactor #1: Oil Prices (Duh.) You likely know that supply/demand laws are at play here, but how? In particular, the demand for crude has dropped to extremely low levels, for a number of reasons, foremost among them the uptick in American production and a drop in Asian usage. Both of these cause the price of crude to drop, which affects the price at the pump. Factor #2: The Summer Bump. We’e always known that gas prices go up in the summer, but why? That’s because of the “Summer Blend,” a form of gasoline which is meant to reduce smog and pollution during warm summer months when more of us are traelling. The rub is this: summer blend gasoline costs much more, sometimes as much as 10 cents per gallon. Factor #3: Bad Weather. Another reason that prices drop in the winter is because, as a nation, we trael less during the winter months. Accordingly, a spike in trael can cause a spike in fuel demand. Then there’s this kicker: when hurricanes or storms along the gulf coast his areas loaded with refineries, it can cause disruptions that bump the price. Factor #4: Simple Geography. Say you live in Hawaii. (If you do, consider us jealous.) However, the cost of shipping factors into the cost of fuel. Meanwhile, some states simply have higher fuel taxes than others, which translates to higher prices at the pump. While there are certainly other factors that figure into your oerall gas price, these are among the most commonly cited for our major fluctuations. Luckily, with many Nissan vehicles ranking among the most efficient on the road, these only affect us peripherally.