Why do gas prices jump around so much?

March 7, 2023

In brief, oil is a global commodity, so the price at the pump in Puyallup reflects decisions made in Riyadh about production, Houston about profit margins, and Moscow about war. 

For a good, thorough explanation, read this, from FinMasters

Gasoline price per gallon and cost equivalent for electric transportation

Data on gasoline prices (Washington All Grades Conventional Retail) are from the US Energy Information Agency (EIA) Weekly Retail Gasoline and Diesel Prices time series.
Data on electricity prices in gasoline equivalents are derived based on Washington state residential rates from EIA’s Electricity Data Browser “Average retail price of electricity, monthly”.

Gas prices rise and fall due to many factors out of our control. By comparison, electricity as a fuel is cheaper per-mile and prices have proven more stable over time. Greater reliance on clean electric fuel from local hydro, nuclear, solar, and wind electricity production also keeps more dollars and jobs in-state. Next generation liquid fuels sourced from local feedstocks and green hydrogen can provide similar economic and environmental benefits.

Investing in accelerating the transition to stable, locally-sourced-energy for transportation means lower and more predictable prices for businesses and consumers. With funds raised from the Climate Commitment Act auction of allowances, we can build infrastructure, support businesses transitioning fleets, and help more drivers purchase zero emission vehicles. With greater energy self-reliance Washington drivers stand to benefit from lower costs too.

As more combustion engines are replaced by electric cars and trucks, transportation and transportation-related costs will drop, and with energy self-reliance, Washington drivers and businesses will be less dependent on the volatility of global oil price swings.

Clean & Prosperous Washington is a project of the Washington Business Alliance.
Contact us at info@cleanprosperouswa.com