The price of gasoline is made up of four factors:
These are 2020 numbers so I'm sure they've changed but for our purposes they'll suffice. Since the price of crude oil accounts for 43% of the price you pay at the pump, we see price increases/decreases at the pump when the supply of crude oil is affected. When the supply of crude oil is threatened prices also go higher.
Essentially the law of supply and demand regulates gasoline prices. When demand is high prices go up and vice versa. This is also why gas prices go up during the summer, as more people are driving and demand is high. And why to gas stations, independently owned but both operating under the same brand, for example Exxon, will undercut each other by a few pennies. More often than not you'll also see higher gas prices at a gas station right before an interstate onramp vs. one in the middle of town.
