Gas prices have ticked back up again in the last few weeks. Sure, it’s travel season so supply and demand is a part of the explanation, and yes, the Russia/Ukraine thing is still in play, too. But why is it always more expensive in the summertime? There’s a reason, and we’re going to explore it.
Here are Five Fast Facts on why gas is more pricey in the summer:
- ⛽ What Is Gas? - It starts with understanding that gasoline is not just refined crude oil, but it also includes a number of additives and other chemicals. These things all burn differently and release different byproducts when they are burned by engines.
- 🧼 Cleaning House - In April each year, energy companies shut down their refineries to do maintenance and cleaning, which means supply is limited for a few weeks. This plays right into the supply and demand piece of the equation.
- 📝 Regulations - In 1995, the EPA started a program to require a different gas blend in the warmer months. These “summer blends” burn cleaner and release fewer pollutants than the winter blends. This is what gas stations supply from June through mid-September.
- 🔁 Cycle This - Because of these regulations and cleaning cycles, the gas supply changes out twice each year, swapping back and forth between the seasonal summer and winter blends.
- 💰 The Cost - Summer blend gas costs more to make. Each gallon of summer blend costs between 5 and 15 cents, depending on where you live.
🔥Bottom line: To sum it all up, part of the cost increase every year is the simple result of supply and demand and facility cleaning. That makes perfect sense. But the bigger piece of it is from government regulations, and that feels…less great.
What do you think should be done about these summertime gas prices?
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