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In our common daily life, we always come across the situation of fluctuating fuel prices. We always notice a price hike of fuel during the spring season and summer season when the weather seems to be warm. Likewise, we also notice a great drop in the price of fuel during the winters when the temperature is on the colder side of the scale. This is not something new for us as this happens every year with the change of season. The reasons could be multiple for this change in price. The fuel, let us say petroleum or the gasoline comes from refining the crude oil. With the change in the price of crude oil, the price of gasoline definitely changes. This happens in general. But there are instances when even the crude oil price did not change while the gasoline prices had a great change in price(Central, 2018). This is due to the gasoline scarcity. This definitely happens seasonally. In the spring or the summer, when the weather is warm, many people travel a lot than in colder temperatures. Due to this general fact, the use of petroleum also varies. A lot of people are tending to consume more gasoline during the warmer seasons than in the colder temperatures. Apparently, when the consumption of gasoline increases, the availability of the product decreases and a lot of people still rely on it. Due to this, the product goes scarce and when the scarcity increases, it is obvious that the price goes on to the peak. This is one of the main reasons for the price hike in spring and summer and the drop in winter.
The reasons are not just confined to the increase in the use of gasoline in summer, but there are also other reasons. In the warm seasons like spring and summer, the temperatures are usually high in number and these temperatures make the liquids to evaporate more than in colder climatic conditions(AMADEO, 2019). Since gasoline is in liquid form, it evaporates in greater amounts with the rise of temperatures by number. This makes the gasoline getting scarcer and obviously, the price takes the positive heights on the graph.
References:
AMADEO, K. (2019).Why Are Gas Prices So High?Retrieved from www.thebalance.com: https://www.thebalance.com/why-are-gas-prices-so-high-3305653
Central, C. (2018).5 reasons the petrol prices have increased this April. Retrieved from albertonrecord.co.za: https://albertonrecord.co.za/173380/5-reasons-petrol-prices-increased-april/