Why does gas fluctuate prices so much from day to day? Why don’t they have a set price, like how most goods are?

Question

Why does gas fluctuate prices so much from day to day? Why don’t they have a set price, like how most goods are?

In: Economics

Answer 1

The gas station wants to sell the gas for as much as possible. But they also want their tank to have enough room for their next delivery. They have to price it high enough that they’ll maximize their profit, but low enough that they won’t have a delivery that can’t fully unload. Likewise, if they completely sell out, then the price was too low, and they could’ve made more.

So if they’re selling it faster than expected, price goes up. If they’re selling it slower, price goes down.