Why is there such a big difference in gas prices at gas stations?
1 Answers
In areas with intense competition, gas prices tend to be lower, and this is not due to distance issues (for example, FAW-Volkswagen cars have uniform suggested retail prices nationwide, but discounts in Guangzhou are significant due to fierce competition). The two state-owned oil giants in China are government enterprises, and regions with more private refineries tend to have lower gas prices (qualified private refineries mostly import crude oil, and the refined oil quality is not poor; to maintain monopoly, domestically produced crude oil is not sold to private refineries). Gas prices may rise due to the following factors: 1. Supply and demand: The relationship between supply and demand is the main reason affecting the rise in oil prices. When global crude oil production cannot keep up with demand, i.e., when supply falls short of demand, it leads to an increase in oil prices. 2. US dollar index: The US dollar index is inversely correlated with oil prices. When the dollar index weakens, funds flow from the dollar market into the crude oil market, stimulating a rise in crude oil and thereby driving up oil prices. 3. Economic development: When the economy recovers or develops rapidly, it increases the consumption and demand for crude oil, stimulating a rise in oil prices. 4. Impact of wars: When wars occur, they increase the demand for crude oil and also affect crude oil production, as well as drive safe-haven funds into the crude oil market, leading to a rise in oil prices. 5. Policy impact: When major crude oil-producing regions introduce policies to reduce or restrict crude oil exports, it can lead to an increase in oil prices to a certain extent.
