Letter: Don’t blame Big Oil for price fluxuation

I was surprised you printed a letter (“Big Oil does it again”) without checking the facts. The author suggests oil company collusion for rising gas prices.

Springtime gas-price increases are a well established seasonal pattern.

Refineries make lots of heating oil during the winter, producing excess gasoline at the same time. Fewer miles are usually driven in the winter. This depresses gas prices; it’s called supply and demand in economics.

In the late spring, the refineries perform maintenance and switchover to summer gasoline blends that have a different additive mix and more costly ingredients. Thus, gas prices rise due to higher costs and more demand.

Recently, the federal DOT published data on the record amount of miles driven in the U.S. due to low gas prices and the improving economy. Low prices created more demand. Those “miles driven” are the other big factor (added demand) on now rising gas prices.

This story was originally published April 19, 2016 at 6:24 PM with the headline "Letter: Don’t blame Big Oil for price fluxuation."