The Seasonal Spike: Why Fuel Prices Go Up in the Summer

Image source: Boegh

Summer is officially here and the sultry season brings many wonderful things: BBQs, pool parties and long, lazy days at the park. But summer also brings a few not-so-splendid things, too: sunburns, sweaty everything and high fuel prices.

Now, while you can easily prevent two of the previously mentioned summer bummers, you really can’t do much about high, summer fuel prices. While you may be irked about the high prices, there is a real reason why gas prices spike in the summer.

In the article “Why is summer fuel more expensive than winter fuel,” Jacob Silverman says there are four main reasons why fuel prices tend to go up after Memorial Day:

• More people travel in the summer, which increases fuel demand.
• In the spring, refineries run routine maintenance at facilities. The routine shut down typically limits fuel capacity until late May.
• Unknowns, such as natural disasters, can damage refineries and disrupt fuel transport routes.
• The fourth reason is not as well known: The summer-fuel blend is different (and more expensive to make) than the winter-fuel blend.

According to Silverman’s article:

“Depending on the time of year, gas stations switch between providing summer-grade fuel and winter-grade fuel. The switch started in 1995 as part of the Reformulated Gasoline Program (RFG), which was established through the 1990 Clean Air Act Amendments. The Environmental Protection Agency (EPA) started the RFG program in order to reduce pollution and smog during the summer ozone season, which occurs from June 1 to Sept. 15.” – How Stuff Works

Summer-blend fuels have different fuel additives (also known as oxygenates) that help reduce pollution. The summer blends burn cleaner, produce less smog and release less toxic air pollutants, and help compensate for the limited oil supply.

According to the article, summer-grade fuel has a different Reid Vapor Pressure (RVP -- the vapor pressure of gasoline measured at 100-degrees Fahrenheit) than winter-grade fuel. A fuel blend's RVP is based on the combined RVP of the ingredients that make the blend. Some regional and local regulations have stricter standards, though. This makes the summer-fuel blend marginally more eco-friendly because fuels that have higher RVP evaporate easier than fuels with lower RVP.

 

According to the Today In Energy article, “Date of switch to summer-grade gasoline approaches,” the federally mandated dates for summer-grade fuel and reformulated gasoline are May 1 to September 15 for refiners and terminals, and June 1 to September 15 for gasoline retailers (Note: “In California, switchover dates are earlier, and summer-grade gasoline must be in use for a longer period.” – Today in Energy, U.S. Energy Information Administration).