The price of gas is depends on the current price of oil, but numerous additional factors also contribute to the fact that someone in New York could be paying more than 30 cents per gallon more than a person in Houston to fill their car up with all other factors being equal.

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Supply and demand & power of the dollar
An oversupply happens if more oil is out in the market than there are people who consume said oil. This will lower the cost of oil and those savings are typically transferred on to drivers at the gas pump.

The international benchmark costs for diesel, gas and other fuels are determined in US dollars, so the power of the regional currency can have an effect on the international cost of gas.

Cycles of gas prices
Patterns in pricing for capital cities will entail prices going down steadily with a sharp increase to follow. This is due to the intentional pricing policies of gas stations and isn’t associated with direct changes in prices.

Such cycles are reported by organizations that go on to provide advice on the thriftiest and most expensive times to buy gas in capital cities. How long each cycle lasts in all of the capital cities will be different depending on the cycle, but you can usually find the average online.

Cycles in the recent past have experienced falling prices or ones that remain steady for 45 days. The NRMA mentioned that motorists can expect to see more falls in the upcoming weeks.

Competition of local market
Lower rates are generally observed in cities that have a greater amount of independent retailers. This is because the competition is greater and will cause capital cities to witness lower prices than rural or regional areas in general.

Location considerations
In rural places, the amount of gas sold is lower as there are usually fewer customers. Retail sites with greater sales rates can spread predetermined expenses (like maintenance and gas station service technician costs that typically stay the same despite sales) across a larger volume—lowering their unit expense.