Why does the cost of gasoline flunctuate so much.?

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Highway Transportation System info?

Alot of the pricing is based on market speculators. That is people who buy and sell basically stock in the oil futures market. If they think that the price of oil is going to go up, they buy more shares and actually help to drive the price up on thier own. Conversely, they might see the market as weak and sell thier shares driving the price down. Sometimes thier decisions are based on statements from OPEC ( the association of arab oil producing countries or something to that effect) about whether they will increase or decrease thier oil production. Sometimes it's based on some world event like a terrorist bombing. Sometimes it seems to be based on nothing at all. It really is a world market though. There is no one person or company setting the price.

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There are other more local factors as well. There are different blends of gasoline for summer and for winter. During the fall you usually see prices fall as the refineries are trying to use up all of thier stummer stock to make room for the special winter blends. The same thing happens in the spring when they are making the switch back to the summer blends.
During the height of the summer driving season when demand for gasoline is at it's highest, prices for gasoline are also high. Supply and demand.

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Because people are speculating on the price. Gas is traded as a commodity on the commodities market.

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several reasons, the time of year, market fluctuations, supply of crude oil, weather conditions, futures speculations, supply and demand etc.. when the price of fuel fluctuates so does the other products that we buy go up because of cause and effect. if it cost more to buy gas it will cost more to transport food to the store, diesel that fuel trains that haul coal to the the steam fired
electric power plants drives the price of electricity up. it all has a trickle down effect.

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because some arab wants to buy a new mansion this week.
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