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Any driver can tell you the price of gas changes every day and varies from one station to the next. 

But do they know why gas prices change daily? The answer can be found in supply and demand, the time of year and snacks. 

How much drivers pay at the pump is affected by crude oil prices and the amount of available gasoline to meet demand. An increase in demand for gasoline and other petroleum products (like jet fuel and asphalt) in the United States and around the world can create challenges for suppliers. 

According to the U.S. Energy Information Administration, “gasoline prices tend to increase when available gasoline supply decreases relative to real or expected gasoline demand or consumption. Gasoline prices can change rapidly if something disrupts crude oil supplies, refinery operations, or gasoline pipeline deliveries. Even when crude oil prices are stable, gasoline prices fluctuate because of seasonal changes in demand and in gasoline specifications.”

AAA reported on Dec. 19 that the average price of gasoline was $2.83 in North Carolina. In Beaufort County it was ten cents lower at $2.73. The national average was $3.04. Last year’s average for regular-grade gasoline was $2.92 in North Carolina, but $3.35 for mid-grade and $3.73 for premium. 

When drivers go visit loved ones for Christmas next week, they should expect to pay more at the pump, because the demand for gasoline will likely increase. 

According to AAA, 119.3 million Americans are expected to travel 50 miles or more from home during the holiday season which they define as Dec. 21 to Jan. 1. This is a 2.4% increase from last year’s travel figures and is anticipated to be a record-breaking year for holiday travel. 

At Thanksgiving, AAA estimated 2.2 million North Carolinians would travel 50 or more miles from home for the holiday. This was an all-time high for Thanksgiving and nearly 44,000 more travelers than last year. 

With an increased amount of travel on the roads, more gas will need to be transported from refineries to stations. A portion of what drivers pay at the pump goes toward the cost of transporting gasoline from refineries to North Carolina. The greater the distance between a refinery and a gas pump, the greater the cost for gasoline. 

According to the U.S. Energy Information Administration, there are zero petroleum refineries in the state. 

North Carolina relies on “two major petroleum product pipelines-the Colonial Pipeline and the PPL Pipeline (formerly known as the Plantation Pipeline)-that deliver refined products at several locations in the state on their way to the Northeast from the Gulf Coast. A third pipeline-the Dixie Pipeline-supplies propane to customers in seven southeastern states, including North Carolina, before terminating in Apex, North Carolina, just southwest of Raleigh. Some petroleum products also arrive in North Carolina at the Port of Wilmington.” 

Gas tax can also affect the price of fuel. Effective Jan. 1, 2025, the gas tax in North Carolina will decrease slightly to 40.3 cents per gallon from 40.4 cents per gallon, the state’s Department of Revenue announced on Nov. 27. The new tax rate will last until Dec. 31, 2025. The inspection tax will remain at 0.0025 cents per gallon or gallon equivalent.

Gas stations receive pennies on the dollar from gas sales and some stations can lose money on gas sales. This is, in part, why they sell snacks and drinks. Margins on the perfect road trip combination of sweet, salty snacks and soda are much higher at over 40%, Statista reports.