Understanding the Rise and Fall of Gas Prices

If you are watching the evening news often, then one issue that you will constantly notice being reported is the fluctuation of fuel prices. Have you ever thought what is causing the costs of gasoline to increase in price every now and then and why is it that some gas products are more expensive compared to others?

Let us try to find out the reason behind this event.

First and foremost, why is it that gasoline prices are fluctuating so often? Basically, the price of crude oil is the basis among refined petroleum products. This is determined largely by the fluctuations in world’s supply and demand. Therefore, the cost is main factor that is influencing the cost for retail gasoline throughout a given period.

It’s a Given Issue

As a matter of fact, refinery costs are fluctuating in a given year. This is a representation of other expenses that are impacting prices of gasoline. Gasoline has different formulation throughout summer in an effort to reduce smog-creating pollutants that are entering the environment as a result of fuel. The cost of product for gasoline blend for fueling from periods of June 1 to September 15 are actually higher compared to fuel blends that are sold at other seasons. It is because of this why the price at gasoline stations are increasing.

Refineries should produce close to 15 fuels in order to meet the different requirements for summertime fueling both for state and regional.

During winter however, refineries simply have to produce few of it. And US refineries normally perform maintenance in spring which can then result to lower gasoline price and decline in supply leading to higher prices. Now if we are about to compare this to buying digital items, it will be totally different. There is only a “sale” in a given season and then after that, the cost of items will return to normal. Right now, if you are lucky and playing Diablo II, you can get “sale” items by checking D2 items price list.

Why Does Different Countries have Different Gasoline Prices?

End product for motor gasoline is distributed across countries. Depending on the place of origin and supplier, the cost of importing gasoline will affect its final price. Remember, suppliers have to deal with tariffs, taxes, environmental fees and everything in between to deliver fuel. All of which are adding to the overall price of the product.

Sourcing and Manufacturing of Biofuel

Biofuel is another form of energy source that’s derived from any renewable materials whether it came from animals or plants. Few known examples of biofuel include the following:

  • Ethanol – this frequently comes from corns in the US as well as sugarcane in Brazil
  • Biodiesel – this one is sourced from liquid animal fats and vegetable oils
  • Green diesel – its derived from plant sources like algae and;
  • Biogas – basically, it’s methane that’s derived from animal manure as well as other digested organic material

Biofuels are more useful in form of gas or liquid as the transportation, delivery and burning of such material is easier and cleaner.

Manufacturing Biofuel

There are a lot of companies in energy industry deem biofuel as a vital material to the future of energy production. As a matter of fact, this is one of the reasons why many other businesses like Chiang Mai Hotels are also looking up for other options. Besides the fact that it is going to help the business save money, they’re contributing to environmental conservation as well. This is because of the fact that it is renewable and clean.

Ironically, majority of the big oil companies are pouring investments in advanced research for biofuel. ExxonMobil, the biggest oil company in the US states that they’re funding a wide portfolio of biofuels research program. This includes the ongoing efforts on algae and programs to convert alternatives similar to non-food based biomass feedstocks like cellulosic biomass to create it as advanced biofuels.

However, they warned that the scientific breakthroughs and technology advancements are crucial elements both in biomass optimization and processing of biomass into viable fuels.

Ceiling for Biofuel Usage

There are a number of people who are concerned with carbon dioxide emissions and energy security of biofuel if it is continued to be used as a fossil fuel alternative. On the other hand, it is inevitable that biofuel has its shortcomings too. For instance, it requires more ethanol compared to gasoline just to generate the same volume of energy. Critics are contending that the use of ethanol is just a huge waste since the production of ethanol normally creates net energy loss while increasing food prices.

Biofuels come to the point of contention for several conservation groups arguing bio-crops are better to be used as food source than fuel. Specific concerns are focused on using large volume of arable land needed to create bio-crops that then lead to problems similar to salinity, fertilizer run-off, soil erosion and deforestation.

When is the Best and Worst Time to Fuel Up?

For car owners and businesses that are into transportation and logistics, knowing the time and day of the week is best to fuel up their automobiles is crucial. If you are here for the same reason, then you’re in for a treat. This is exactly the topic that we are going to talk about in the next lines. So if you wish to know more about this subject, then I suggest that you keep on reading.

Monday is the most Anticipated Day for Car Owners

According to fuel experts,

Monday has a tendency to be the best day of the week to buy gas.

It is because it’s the day when petrol hits its lowest in the market. This is as per a study conducted to fuel prices by over 60 million consumers across the country from using gas saving app GasBuddy. Well, this was the case back in 2016 in 36 states.

On the other hand, if Monday was not the lowest to buy fuel, then Tuesday typically comes next. According to the study, it is best for motorists to fuel at the earliest days of the week if they wanted to save money on fuel.

Good Luck after Hump Day

If Monday and Tuesday are days when it is lowest to gas up, then Thursdays tend to have the highest fuel price in the market. Assuming that every US motorist has gassed up on this day for the whole year, they will accumulatively spend additional 1.1 billion dollars than having to fill up on Monday or Tuesday which has the lowest price of the week. Then Saturday snatch the second day that is not ideal to fill up your car.

According to Patrick DeHaan which is the senior analyst at GasBuddy, he said that gas stations are more likely to increase their prices on weekends. It’s because they are well aware that great number of motorists hit the road. These motorists are trying to squeeze in more time with family and friends and thus, getting out and traveling to and from different places.

By feeding your mind with this information, you’ll be equipped with the knowledge of ensuring that you’re not wasting any money on gas. Make the savings begin here!