Gas prices fluctuate day to day, but have you ever noticed
that they also seem to change with the seasons? As summer approaches, you can
usually expect a slight price hike on gas, while winter is usually marked by
lower prices at the pump. Here's why.
The seasonal gasoline transition
The seasonal gasoline transition occurs twice every year in
the United States. Although it sounds like an ancient oil festival, it is not
accompanied by wild celebrations and revelry in oil producing states, such as
Texas and Oklahoma. Instead, it is simply when oil companies switch their gas
supplies from summer grade fuel to winter grade fuel or vice versa. The seasonal
gasoline transition is one of the reasons gas prices rise in the summer and go
down in the winter.
The Reformulated Gasoline Program
The Reformulated Gasoline Program (RFG) owes its existence
to the 1990 Clean Air Act Amendments. The switch from winter to summer gasoline
blends began in 1995 as an attempt to reduce pollution. Summer gasoline uses
different fuel additives to prevent it from evaporating too quickly. How
quickly a gas evaporates is based on its Reid Vapor Pressure (RVP). The higher
a gasoline's RVP, the quicker it evaporates. All gasoline has to be below 14.7
psi or it would no longer be liquid. Summer gasoline is usually between 9.0 and
7.8 psi. That's something to think about the next time you're filling up the
tank.
Higher gas prices in the summer
The ultimate question when it comes to the differences
between summer blend and winter blend gasoline is why it goes up so much in the
summer. The truth is that there are many factors. Lower RVP gasoline costs more
because of the additives that are needed to keep the RVP low. Demand is also
higher in the summer. In addition, during the spring months, most energy
companies in the United States conduct maintenance on their refineries, which
limits their capacity. These maintenance shut downs are part of the seasonal
gasoline transition and lead to a limited supply of fuel. This lessening of
supply while demand is greater has a large effect on gas prices.
The environmental impact
The justification for lower RVP gasoline blends stems from
the desire to lower emissions and smog during the summer months. With less
gasoline evaporating into the atmosphere, air quality increases.
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