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What goes into setting gas prices

Published: Jun. 21, 2022 at 10:22 PM CDT
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EAU CLAIRE, Wis. (WEAU) -From last week to this week, gas prices in Wisconsin dropped nearly 10 cents. The state average is hovering around $4.80 a gallon.

After seeing a large increase during the last few months, in recent days, prices at the pump are starting to go down.

American Automobile Association (AAA) said three major factors impact what you pay to fill up.

When gas station owners set the price, AAA said they consider crude oil prices as well as supply and demand.

They also take into consideration gas futures or the stock market for gas.

In different parts of a city or county, gas prices can be different because of how close the station may be to interstate off ramps or airports where demand can be higher.

Rural areas may pay more because it’s not as easy to get gasoline there.

AAA said we’re seeing prices start to go down over concerns for the future.

“We are seeing and hearing the potential for a global recession, and if a recession occurs, then all of the demand drops way down,” said Meredith Mitts, a public affairs specialist with AAA. “In order to combat this, people are starting to drive less, and that has everything at least leveling out, but that’s part of why the crude oil prices are coming down.”

Even as prices do start to dip, Gov. Evers signed an emergency order Tuesday prohibiting people from selling gas or diesel at unreasonable prices.

That order is scheduled to go through the end of this year.

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