What Affects Gas Prices? Four Key Factors

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Have you ever been driving down the highway and noticed that gas prices change from one town to another and one province to another? Why is that exactly? Shouldn’t gas prices be the same everywhere?

What Affects Gas Prices? Four Key Factors

Not exactly. What you may not know is there are several different factors that affect gas prices and why they fluctuate throughout the year. Here are some key considerations:

  1. The cost of crude oil changes due to it’s availability and according to consumer supply and demand.
  2. It also costs money to refine crude oil so that it is acceptable for consumer use. The cost to refine it versus the profits that are made can also affect gas prices.
  3. Another key factor is the cost to distribute and market fuel as it becomes available.
  4. And lastly, local, provincial, and national taxes affect the price of gas.

So, when driving down the road, when you see different gas prices that seem to be constantly changing, all of these factors come into play. For example, around the holidays, gas prices tend to go up because the demand from drivers goes up, and therefore affects the supply.

At Collingwood Fuels, we know that budgeting for fluctuating gas prices can present some challenges, but we keep up with these changing numbers and can provide you with up-to-date information. We also offer convenient Card Lock services that make it easy to refuel. Contact us today to get the latest gas prices and stop by to fuel up for the road.