Pricing as Impacted by Supply and Demand
USA Today article, “Gas prices head up when they usually head down in winter“, talks about a nationwide increase in gas prices during a period that typically sees a decline. The winter generally leads to less driving which results in lower gasoline demand. That lowered demand typically results in lowered pricing as suppliers try to move their inventory but, in this case, the primary gasoline suppliers have limited production which has kept prices artificially high. That gasoline supply industry operates as an oligopoly (leaning toward monopoly through the OPEC consortium) which we discuss in Chapter 3 as well as Appendix A.
Beyond the impact on pricing, the article also discusses the impact gasoline prices have on consumer preference when it comes to buying a new vehicle.