Why do gas prices go up in the winter and electric prices rise in the summer?

The reason why gas prices go up in the winter and electric prices rise in the summer can be largely attributed to the economic principle of supply and demand. It is not fair to consumers. It is designed to make the utility companies more money based on what you need and when you need it.

The economic principle of supply and demand states that when supply is high, demand will be low and prices will be low. When supply is low, demand will be high and prices will be high. Utility companies know you will need to use more electricity in the summertime and more gas in the wintertime.

You have to do that or face being uncomfortable in your home. To make as much money as possible, they will raise the prices as high as people are willing to pay before changing their habits. From Wikipedia.Com -quote The four basic laws of supply and demand are 1 1.

If demand increases and supply remains unchanged then higher equilibrium price and quantity. -endquote.

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