A lot of factors play into the cost of gas at the pump — from natural disasters and pump location to the buying trends of local gasoline suppliers.

Living in a city located off a major interstate could lead to favorable or not so favorable situations for those seeking low gas prices.

For a city the size of Austin, gas prices already tend to run higher than metro areas — largely due to the lack of competition among gas stations that exist in larger cities. However, being located on a major interstate — I-90 — doesn’t help. According to Patrick Dehaan, a senior petroleum analyst with minnesotagasprices.com, gas stations located near heavy traffic roadways don’t necessarily need to drop gas prices down to lure customers in.

“A lot of time, on a higher volume highway, you have people who are less likely to shop around — they’re just buzzing through,” Dehaan said. “Studies have shown drivers get gas and then continue. Stations know travelers will be coming through and they don’t need to drop their price because of motorists’

habits.”

Gas prices in Austin are currently $2.69 a gallon — a price that’s been consistent at all stations for the past three weeks, according to minnesotagasprices.com

In the Twin Cities, the price of a gallon of gas has fluctuated eight cents over the last week, with average prices now sitting at $2.65 a gallon.

Prices are similar in Rochester, with prices fluctuating Wednesday 2 cents depending on where consumers stopped.

A wholesale issue

Gasoline sells at wholesale prices to gas pump distributors. Wholesale prices are set at a much lower price than what consumers pay at the pump. This week, according to minnesotagasprices.com, wholesale prices for a gallon of gas sat at $1.93 — a price that does not factor in taxes and freight expenses.

A week ago, the wholesale price was set at $2.14 a gallon.

Considering prices have not changed over the last three weeks in Austin, while wholesale prices have dropped by .21 cents, Dehaan said it’s likely gas stations have not yet sold enough gasoline from the last batch when wholesale prices were set much higher.

“As cheaper gasoline starts to be trucked in, and stations start to stock up on that new gasoline, prices could drop,” Dehaan said.

There’s generally a two-week lag between wholesale price decreases and lower prices for motorists.

Forces beyond control

Though Dehaan said prices will likely drop because of decreased wholesale values, he also admitted it’s difficult to predict whether or not prices will continue to go down — or reverse and spike.

“The most important factor right now is the hurricane season,” Dehaan said. “Billions of traders are very concerned that when a storm develops, they need to buy today to make sure clients are supplied. Barring a big storm, we’ll stay stable in the next two months.”

The economy is another big factor in the gas price game.

“Nobody is sure where the economy is moving,” Dehaan said.

Employment numbers, and an uptake in the economy could drive numbers down — or up.

Last year at this time, when the economy was looked at by investors to be in a spiral, Austin saw prices as low as $2.50 a gallon.

“A lot of investors and folks who trade oil and make oil prices believe the economy is slowly improving,” Dehaan said. “That dictates to higher gas and oil demand.”

At the pump, that translates to higher prices. This year, prices in Austin are .19 cents more.

There has also been a decrease in the amount of gas used by motorists this year throughout the country, Dehaan said.

“The demand this year has not been as high as it has been in years past,” he said.

Labor Day will be the exception to that trend. Labor Day is considered to be a high-travel day throughout the United States. It’s on that day that prices at the pump generally drop.

Deehan predicts motorists in the Austin area could see prices at the pump drop by a dime during the travel weekend. That is, of course, if the weather, economy and buying trends of distributors and traders, stays on course.