Why do most goods have relatively stable prices, while gasoline fluctuates on a daily basis?

Question

Why do most goods have relatively stable prices, while gasoline fluctuates on a daily basis?

In: Economics

Answer 1

One of the key factors not previously mentioned is that gas stations run on super thin margins. While a carrot is typically marked up by 100%, so a 5% change in cost is no big deal for the reseller, gasoline is marked up by 5-10%, so a 5% change in cost might wipe out the profit altogether.

Also, gas stations absolutely change prices through the day based on demand. The price of gas absolutely increases during rush hour. When your margins are razor thin, you need to use every possible advantage.

Source: investigated buying a gas station.