Why do gas prices change on a daily basis?
They change because they have to stay competitive with other gas stations. if gas station A receives gas on monday for $2 and gas station B on tuesday for $1.90, gas station A must compete with gas station B and lower its price. If it doesn’t, everyone will buy from B, and A will be stuck with its “more expensive” gas until the price goes above $2, and it can sell it all. The way it is now, some days a gas station will make more, and some days it will make less, but overall it will move a large amount of gas with a steady profit, and will not be affected by what day it bought the gas on. The reason gas prices are so volatile in the states is that gas is completely unregulated there. In other countries (i lived in Mexico for a while) gas is much more stable because when the price increases quickly, the govt. subsidizes it, and when it decreases, the govt. recoups its losses from subsidizing it.
