Why Are Gas Prices Going Up?

The cost of gas keeps going up, and it seems like a frustrating mystery. This article from At Home Title Loans will tell you why it keeps happening. Here, you’re going to learn the reasons behind gas prices going up all across the country.

On top of that, you’ll also discover some tips to help you cope with the gas price increase as best as you can.

What Are Five Common Reasons Gas Prices Go Up?

The price you see at the gas pump results from several factors combined. Gas becomes more expensive whenever one or more of those factors changes, driving the price upward.

Here are five common reasons why gas prices are going up:

1. Raw Material Costs 

The fuel that goes into your tank is the end product, meaning it doesn’t come out of the ground like that. Instead, the raw material used to produce fuel is crude oil.

Crude oil is a commodity like many others, traded internationally and subject to daily changing prices.

As such, one reason gas prices go up is that the cost of crude oil is also increasing. That could happen for any number of reasons, such as reduced production, increased demand, or even problems with shipping that raw material to where it needs to go.

2. Changes In Taxation

Crude oil (i.e., the raw material) goes through many different stages before it reaches the pump, ready for you to fill your tank. That means producers must pay local, state, and federal taxes as they process that oil.

Those producers factor those tax costs into the amount you pay for each gallon of fuel. That means your gas prices could go up because one or more of the taxes producers pay have recently gone up.

3. Production Issues

Occasionally, gas prices also go up due to production issues. Perhaps there’s a breakdown at one of the refineries which produces the fuel you use.

That means the supply is disrupted despite the same demand, and prices go up temporarily.

4. Increased Demand

A decrease in supply can raise gas prices. Similarly, an increase in pump demand can produce the same outcome.

For example, people go on plenty more road trips when the summer months roll around. That means more people are buying gas for their vehicles, including larger ones like trailers and RVs. 

5. Different Station Locations

Remember: not all stations charge the same. 

That’s why it’s also possible that the higher gas price you see is simply because you’re visiting a station at a different location that charges higher prices for one reason or another.

For instance, the prices you see at a busy station in the city will likely be higher than those at an out-of-the-way station. It’s not that the cost has necessarily gone up; it’s just two stations charging different prices.

How You Can Cope With Rising Gas Prices

Gas prices are not something that we can control as individuals. However, we can take plenty of steps to cope with them. One idea is to ditch your car entirely. Relying on public transportation or carpooling with others to save money. However, making that sudden change can disrupt your daily life.

Instead, a more practical approach would be to improve your car’s fuel efficiency. Remember: all cars are designed to be fuel efficient, at least up to a point. However, that’s only possible if you keep the vehicle in good shape.

You can maximize your car’s fuel efficiency today by:

• Servicing the engine and transmission.
• Swapping old tires for new ones.
• Cleaning dirty air and oil filters.
• Changing old spark plugs for new ones.
• Replacing dirty oils and fluids.

Securing A Title Loan To Pay For Auto Repairs

Getting such tasks done can save you money in the long run, though they’ll cost a lot upfront. If you don’t have the money, you can consider borrowing using a title loan.

A title loan uses your lien-free car title as collateral to secure up to $15,000. The exact amount you’ll qualify to borrow depends on how much your car is worth.

Here’s one of the best parts: even if you’re approved, you get to keep your car! Only the title is used as collateral, not the vehicle itself. That means you could get the money as early as the same day or by the next business day, then take your car straight to the workshop for a tune-up.

Gather the easy requirements to get the emergency money you need to keep your expenses on track. Those requirements include your lien-free vehicle title, a state-issued ID, and the vehicle itself for a quick inspection that will determine its value and the amount you can borrow.

Get Emergency Cash For Auto Repairs From At Home Title Loans!

You can't stop gas prices going up, but you can definitely take steps to reduce how much of it you need. Each gas price increase is a reminder to keep your car well-maintained to maximize its fuel efficiency.

If you need help fixing your car to cope with the rising cost of gas, get in touch with At Home Title Loans now! Fill out the secure inquiry form with your basic information so a loan specialist from a lender’s location nearby can get in touch to help you get the title loan you need!

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.