What a difference two months makes

Gas prices this morning. Same gas station on Jan. 5.

Gas prices this morning.

Same gas station on Jan. 5.

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2 comments

Unknown said...

And it will raise more a we get closer to summer.....

Insania said...

And, why, TJ, will it raise more as we get closer to summer?

In winter, gas can be blended with larger quantities of cheaper but more volatile compounds, such as benzene. During the heat of the summer, however, these vaporize off too easily, and so cannot be used in high volumes. A consequence is that summer gas becomes more expensive.

The same dynamic occurs in the fall as refiners switch back to winter blends. And, with the cheaper ingredients, the price falls...coincidentally near election time.

Demand also raises prices in summer as we simply use more.

I wonder if those who bought housal units in Whitelock, those who clearly cannot find local jobs to support those houses anywhere in Elk Grove, I wonder at what price will they realize just how utterly dependent they are on the timely, cheap delivery of liberal supplies of gasoline. Living at distances from everything requiring mandatory car use might still make sense at $3.85, but what about $8.35?

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