Why does the price of gasoline and natural gas move in the same direction? What is the relationship?

When the price of gasosline goes up natural gas prices follow, same is true when the price of gasoline goes down. Would like to know why.

3 Responses to “Why does the price of gasoline and natural gas move in the same direction? What is the relationship?”

  1. oil field trash Says:

    Basically natural gas prices and gasoline prices are tied to the price of crude oil. When crude oil prices change, fuel oil prices change and that forces natural gas prices to change because fuel oil and natural gas are in competition with each other as a fuel for electric generation and home heating.

    Gasoline is not made from natural gas. Some natural gas contains heavier liquid components like hexane, heptane and other heavier hydrocarbons that can be loosely called natural gasoline. It is a very small part of the gasoline supply. Most gasoline comes from crude oil.

  2. Sasha Says:

    Gasoline is made from natural gas, i believe… So natural gas goes up, to make up for the costs, gasoline goes up.

  3. Taranto Says:

    If you do an internet search on your question, doezens of sites pop up. Here is one that helps explain the relationship.