Fuel Price Dip: A Welcome Pre-Vacation Surprise at the Pump

Gasoline prices have decreased recently, which is good news for vacationers. According to figures published by the ministry, diesel prices have also gone down. Gasoline prices are typically at their lowest during the first week of February and then begin to climb, often peaking right before Memorial Day. However, prices have declined for the fourth straight week, according to GasBuddy. The national average for a gallon of regular unleaded gasoline was $4.66 per gallon on July 11, 2022, down 34.4 cents from a month ago. Georgia gasoline prices also took a significant drop over the past week, in time for July 4 travel.

To calculate how much fuel will cost for a road trip, you can multiply the price per gallon by the number of gallons needed for the trip distance. There are also several steps you can take to reduce the cost of gasoline before you even leave for your trip, such as checking the engine oil and having it changed if necessary

Gasoline prices are influenced by several factors, including:
Global crude oil cost: The cost of crude oil is the largest component of the retail price of gasoline, accounting for 61% of the price.
Refining costs and profits: Refining crude oil into gasoline is a costly process, and the refining costs and profits account for 14% of the price.
Distribution and marketing costs and profits: The cost of transporting and marketing gasoline to retail stations accounts for 11% of the price.

Federal and state taxes: Taxes imposed by the government account for 14% of the price.
Demand: The demand for gasoline is influenced by several factors, including the number of drivers on the road, the distance they travel, and the fuel efficiency of their vehicles.
Seasonal demand: Gasoline demand usually increases in the summer, which generally results in higher prices.
Alternative fuels: The price of alternative fuels, such as natural gas, ethanol, and biodiesel, can also impact gasoline prices.

Weather: Extreme weather conditions, such as hurricanes and snowstorms, can disrupt the supply of crude oil and gasoline, leading to price fluctuations.

Political disturbances: Political instability in oil-producing countries can also affect the supply of crude oil and gasoline, leading to price fluctuations.

Competition: Competition among gasoline retailers can also impact retail fuel prices, such as store types (branded or unbranded), store location, fuel delivery method, length of existing contracts with suppliers, volumes purchased, and specific store considerations (e.g., labor costs, real estate costs, electricity, credit card fees, equipment cost & maintenance, etc.) .

In summary, gasoline prices are influenced by a complex set of factors, including the cost of crude oil, refining costs and profits, distribution and marketing costs, taxes, demand, seasonal demand, alternative fuels, weather, political disturbances, and competition.