Why are gas prices going down?

Question

Weren't gas prices RISING at this time last year? I thought hurricanes made gas prices go UP. Weird.

Answer 1

Politics. Republicans trying to gain support for the upcoming elections will claim responsibility for lower gas prices.

Answer 2

I believe EPA mandates lower vapor emitting gasolines during the summer season to protect the OZONE. This mandate increases the cost of production. I also believed that the mandated period is based on location (Florida would have a longer summer than Maine). In Illinois the mandated season is from May 1 to September 15.
Governing Organizations that place a percentage tax on a gallon of gas will hit their target earlier if prices are high and may terminate or postpone the taxation. (Let's say a county taxes 10 cents per gallon to pay for its $1MM Road Repair Budget for the year - They reach their target of $1 Million by Sept. 1 - The tax payers elected to raise taxes for $1Million and therefor the county can no longer tax the gas for that particular part the the county's taxation - reducing the price of gas by 10 cents).
As long as Refineries, Pipelines, Barges, Terminals, and Trucks are available (without down time) it's a supply and demand thing.
Another Idea is to try an online source. Try looking up CITGO.COM or some other major oil giant and contact the company with your inquiry. I would also speculate that the prices will go up again during the Holiday season because the demand will return.
The big reason is probably that kids are back in school and gasoline consumption has dwindled. However, I wonder what the diesel prices are doing with all the school busses and campus transportations running?

Good Question,
Bird Dog

Answer 3

My conspiracy theory is that every five years or so, the oil companies raise gas prices to the point that people become outraged. They will then slowly creep the price up to the point that it starts hurting their own profits because people cut back on gas use. Then the oil companies drop the price to a point considerably lower than the public has been paying for the past several months, but still much higher than the average just 1-2 years prior. The public is so happy about the price decrease, no one says anything about the overall huge increase. Follow me?

Answer 4

you are talking about two different things. Last year the refineries that the hurricanes hit and their inability to produce gas sent the prices up. Traditionally, the price of gas will either stabilize or go down some in Sept after being inflated during the summer to discourage over usage of said resource.

Answer 5

Oil prices were going up on speculation, but since Chevron found a large oil supply in the Gulf of Mexico, this drove the price of oil down. Also people are moving away from the gas guzzlers so the speculators on gas and oil are jumping ship now.

Answer 6

Because oil prices are down. Hurricanes only have an effect if there is damage to the gas/oil industry.

Answer 7

Wow i replaced into examining various the solutions, and enable me basically say, a number of you people ought to take an economics class, in case you are trying this you wouldnt be so ignorant, as to think of that the governemnt rather has administration over the united statesand downs of gasoline fees... Take an econ class, trouble-free furnish and insist, summer season time is the utmost call for for gasoline, subsequently fees circulate up, this summer season there replaced into different issues to function to that, consisting of a few refineries shutting down, surely there is many aspects to why gasoline fees circulate up and down, and accountable or provide credit to the gov't is basically stupid.

Answer 8

hurricanes in the oil areas can cause it, we have not had any this year.

but normally this time of year the prices always go down, and in mid winter with the heating oil useage, the price goes back up, esp around Christmas travel time. Back down in Spring again and then back up in summer.

This is called supply and demand

Answer 9

Gas prices are going down because Bush is not going to be in office for long, ha ha ha ( just kidding)

Answer 10

They always go up in the summer....now that summer is pretty much over and fall/holiday seasons are coming up (and we are gonna spend money on other things) the oil companies think they are being nice to us....They have the power to raise and lower them they lower them so they dont take the blame this winter....on why people cant buy toys for their kids b/c gas is high.....though i live in california...and where im at its still 3.00 dollars.....though it usually goes down in october.....