ALT-1 Why do Gas Prices go up in the Summer
Have you ever noticed how the price of a dozen roses suddenly rises near Valentine’s Day or Mother’s Day? There is a simple explanation for this, and it is the law of supply and demand. When dissecting this concept further, the primary motive behind charging consumers more for these products can be summed up with one word: Greed.
These two holidays happen to be the busiest when it comes to the sale of roses in particular. Thus, as your typical John Doe scrambles to the floral section of the supermarket on the night of February 13 to appease his significant other or calls that florist to ensure that his mother who lives 800 miles across the country gets that arrangement delivered by that Saturday before Mother‘s Day, he’s not going to be concerned about the price. Instead, the priority is getting the roses to the recipients in ample time. Those in the floral business know this, and will take full advantage of the fact.
Similarly, this is precisely why the price of gasoline increases during the summer months. Put simply, this is when the highways will be the most-traveled. The kids are out of school, thus summer serves as the ideal time for that family vacation. Even closer to home, campgrounds will be filled with tents and RV’s; especially on weekends. Likewise, those with boats; which also require gasoline, will be out and about on lakes and rivers. Like the floral example above, the oil companies are well aware of the huge potential for profits this time of year, and will squeeze every penny out of John Q. Public that they possibly can.
While this topic focuses on the reasons why gas prices increase during the summer, it should be noted here that such greed is far from being limited to the summer season. As consumers of this commodity, we will also see price hikes around Thanksgiving and at Christmas as well. Although shorter in duration, the reason for this again is an increase in highway travel.
In either case, that subtle 10 or 20-cent jump in the pump price will not deter the average family from taking that trip to the Grand Canyon, Six Flags, or that annual get-together at Grandma’s house. Moreover, such seasonal gouging (let’s call it what it is) has been going on for decades. As a result, we as consumers have come to expect it.
Save for staying home and skipping that trip, the only way those on a tight budget can avoid these seasonal price climbs is to travel during off-peak times. Unfortunate as this may be, the oil companies have the rest of us held captive; and at their discretion and mercy.
