Why Do Gas Prices Fluctuate?

Why Do Gas Prices Fluctuate?

Gasoline prices do move up and down prices wise due to many factors. Among others, the exchange rate and the interest rate of the currency will determine whether there is an increase or decrease of the price of oil or gasoline. Usually the world market’s price of the oil or gasoline make the standard of the said prices because of the fact that it regulates the price of the oil itself from the oil firm to the businessmen. If the world market dictates that the oil price should increase then all the oil companies will eventually increase and the retailers as will add on the appropriate amount that they should increase regarding the gasoline price itself.

Secondly, the forex exchange which is also considered as the primary indicator of the currency exchange against the US dollar will determine regarding the price of the oil and gasoline in the market. If the economy is also doing well, the market will dictate a stable or lower price of the oil or gasoline thus the consumers will be happy about it. But if the economy is bad, the gasoline or oil prices will eventually be affected and it will surely go up making all the automobile owners and consumers suffer with its price increase.

Gas price therefore is something that makes or breaks a business and the lives of the ordinary people hence we must be cautious with our usage of oil and gasoline. It must be noted here that whether we like it or not, the gas price may go up or down even if we do not like it to happen. This is a sad reality that we must face in society as ordinary citizen. Thus we must always be ready of the inevitable rise and fall of gas prices.