Openai/695422f5-b3ac-8000-83e8-d40b9ae7cc86

This conversation was exported from ChatGPT

gpt-5-2

User: Why do gas prices fluctuate within the same day as well as daily

Why do gas prices fluctuate within the same day as well as daily

Assistant: Gas prices can change within the same day and from day to day because they’re influenced by a mix of global markets, re…

Gas prices can change within the same day and from day to day because they’re influenced by a mix of global markets, regional logistics, and local business strategy—much more like the stock market than most people realize.

Here’s what’s going on behind the scenes:

1. Gasoline Is Traded Like a Commodity

Wholesale gasoline prices are tied to oil and refined fuel markets, which move constantly based on:

• Crude oil prices
• Supply and demand expectations
• Geopolitical news
• Refinery outages or maintenance
• Weather events (hurricanes, heat waves, cold snaps)

When wholesale prices shift, retailers adjust—sometimes the same day.

2. Stations Buy Fuel at Different Prices

Not every station paid the same price for the gas in their tanks.

• One station may have just received a new delivery at a higher cost
• Another may still be selling older, cheaper inventory
• Once the cheaper supply runs out, the price jumps

That’s why two stations across the street can have different prices—or why one station changes prices midday.

3. Competition Triggers Same-Day Changes

Gas stations watch each other closely.

• If a nearby station drops prices, others often match it within hours
• If one raises prices, others may follow once demand holds
• Some chains update prices multiple times a day using pricing software

This is especially common in urban areas or along highways.

4. Demand Changes by Time of Day

Stations price strategically based on when people are most likely to buy:

• Morning and evening commute hours = higher demand
• Late night or mid-afternoon = lower demand

Higher demand can justify higher prices—even if costs didn’t change.

5. Taxes and Fees Can Change Overnight

While less frequent, prices can move due to:

• Daily or seasonal fuel tax adjustments
• Environmental blend requirements (summer vs. winter gas)
• Local or state regulatory changes

These typically affect day-to-day pricing more than hourly swings.

6. Psychological Pricing Strategy

Stations often raise prices quickly and lower them slowly:

• Price increases protect thin profit margins
• Price drops are used to attract customers when competition heats up

This creates the feeling that prices “randomly” bounce around—when they’re actually calculated.

The Short Version

Gas prices fluctuate because:

• Fuel is bought and sold in a constantly moving market
• Stations pay different wholesale prices
• Competition forces rapid adjustments
• Demand varies by hour
• Margins are razor thin, so pricing is aggressive

It’s not random—it’s dynamic pricing reacting to real-time conditions.

If you want, I can also explain why prices spike suddenly but fall slowly, or how to predict the cheapest time to buy gas.