Like, prices change every week. Most basic commodities dont change prices as much as gasoline
In: 1
The consumer prices just uppdate faster. All prices change its just that the grocery shop around the corner has already stocked up on some thousands of coke bottles for 1.50$ so they will sell them for that.
Gas stations uppdate thieir prices more dynamic and often for one becuse its easy(supermarkets already experiment with digital pruce tags to be able to do the same) and because drivers can realy choose where to go and will drive 5 minutes to get to the next cheaper station.
Simple answer:
Everybody needs this product, and there is limited storage.
There is a lot of money in the market, and people make money on these fluctuations. On rising prices as well as on falling prices
Because there’s very little value added to the consumer product gasoline compared to most consumer products.
Wheat prices are just as volatile as oil prices, on the financial markets, but very, very few consumers buy wheat, mostly they buy bread, whose price mostly consists of not wheat, in a ($2 loaf of bread there’s about $0.10 worth of wheat) and when wheat prices move, the cost of labor, energy to bake the bread, and energy to deliver the bread don’t always change in the same direction and time. Contrast this with gas, in a $3 gallon of gas, there’s about $1.75 worth of oil.
That means when the underlying price of wheat and oil each move by 20% one day, the impact on the loaf of bread is 1% ($0.02 of $2.00) while on the gasoline it’s more like 10% $0.35 vs $3.00.
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