When the price of gasosline goes up natural gas prices follow, same is true when the price of gasoline goes down. Would like to know why.
2006-09-17 06:18:11 · 3 answers · asked by Eroteme 1 in Business & Finance ➔ Other - Business & Finance
Basically natural gas prices and gasoline prices are tied to the price of crude oil. When crude oil prices change, fuel oil prices change and that forces natural gas prices to change because fuel oil and natural gas are in competition with each other as a fuel for electric generation and home heating.
Gasoline is not made from natural gas. Some natural gas contains heavier liquid components like hexane, heptane and other heavier hydrocarbons that can be loosely called natural gasoline. It is a very small part of the gasoline supply. Most gasoline comes from crude oil.
2006-09-17 09:02:20 · answer #1 · answered by oil field trash 7 · 0⤊ 0⤋
Gasoline is made from natural gas, i believe... So natural gas goes up, to make up for the costs, gasoline goes up.
2006-09-17 06:30:33 · answer #2 · answered by I like Cats 2 · 0⤊ 3⤋
If you do an internet search on your question, doezens of sites pop up. Here is one that helps explain the relationship.
2006-09-17 06:30:48 · answer #3 · answered by Ranto 7 · 0⤊ 0⤋