Why do gas stations fluctuate their gas prices? What’s stopping them from charging a high price even when the market is down?
In: Economics
Customers won’t stop at their station if their prices are higher than the station down the street. Prices fluctuate because the cost of oil changes based on many things, but mainly supply and demand. The recent price slashing stems from Russia picking a fight with the Saudis and the Saudis then creating a price war by pumping ridiculous amounts of oil raising the supply and cutting their prices, effectively trying to stick it to Russia who can’t survive at these low prices as long as the Saudis can.
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