What makes gas stations raise the price of gas?

Gas stations raise the price of gas due to various factors such as increased crude oil costs, higher taxes imposed on them, changes in their supplier rates, competing gas station prices, and fluctuations in demand.

Who makes the most money when gas prices go up?

When gas prices rise, companies involved in oil exploration and extraction profit the most, as the cost of crude oil is the primary factor in gas prices. Higher oil prices allow these companies to sell their extracted oil at increased rates, leading to higher profitability. 

Why do gas prices vary so much from station to station?

Gas prices vary from station to station due to factors such as differences in operating costs (bigger gas stations have more expenses), taxes, supplier contracts, brand affiliations, location, and competition.

Do gas stations inflate gas prices for profit?

While gas stations aim to maintain profitability, the majority of gas prices are influenced by factors beyond their control, such as crude oil costs, taxes, and supplier rates. Gas stations operate on thin profit margins, and significant increases in gas prices are primarily driven by external factors.

Why do gas prices end in 9/10th of a cent?

The practice of pricing gas with a fraction of a cent, typically 9/10th, is a historical convention that originated to make the price appear slightly lower to consumers. It has become a common pricing strategy in the gas industry, although its impact on the actual price paid is minimal.


  • Energy Information Administration (EIA): The EIA provides comprehensive data on energy markets, including fuel prices, supply and demand trends, and market analysis. 
  • National Association of Convenience Stores (NACS): NACS also offers a variety of resources for gas station owners who have convenience stores attached to their stations. These resources include research reports, industry insights, and educational events. 
  • Energy Marketers Association of America (EMA): EMA is a trade association representing energy marketers, gas station owners included. They provide resources such as market intelligence, regulatory updates, and educational programs to help owners navigate pricing decisions effectively. 
  • Market Intelligence Platforms - Several market intelligence platforms, such as OPIS (Oil Price Information Service) and Platts, offer pricing and market data specifically tailored for the petroleum industry. These platforms provide real-time fuel prices, market trends, and analysis to help gas station owners make informed pricing decisions.

About the Author

Christopher Murray

Christopher Murray

Personal Finance Expert

Christopher Murray is a professional personal finance and sustainability writer and editor who enjoys writing about everything from budgeting and saving to unique investing options like SRI and cryptocurrency.

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