For the average American, budgeting is a must. Aside from budgeting for groceries, rent, and power bills, most Americans also need to pay for gas. Gasoline prices, like other commodities, tend to grow or fall depending on a variety of reasons. But how do gas price changes affect drivers in the U.S.?
If you’re someone who is always on the road for a job or travel, a few pennies in gasoline prices wouldn’t hurt. Unfortunately, the same cannot be true for a sudden surge in gas prices, particularly for those living paycheck to paycheck. Increases in gasoline prices have several ramifications.
But why do gas prices rise and fall, and who controls them? In this reading, we’ll explore how gas price changes affect American drivers and what factors determine fuel costs.
Let’s get started!
What Determines Gas Prices?
Supply and demand, the cost of crude oil and the refining process, distribution and marketing, and tax rates are the main determinants of gas pricing.
Supply and Demand
The relationship between the number of commodities a producer