Why High Gas Prices

Why high gasoline Prices? : Causes and Effects

Gasoline has become a necessity to almost everyone. It only takes stopping at a gas pump to see that the prices are continuing to rise. Across the country drivers are feeling the strain on their wallets every time they have to fill up. Commuting to school or work is becoming more costly, forcing people to change their lives to deal with the rising prices. So what causes the constant rise in gas prices? We can blame supply and demand, the United States dependency on foreign oil and the process need to produce gasoline. What are the effects? High demand but not a lot of supply. This means there not enough refineries producing gasoline. Without gasoline people can’t make it through their daily

Anything that is produced or sold, has a certain amount of demand. The amount of product is consider the supply. Whereas, the need for the product is the demand. If the demand is high and the supply is high the amount for that product will decrease. If the demand is high and the supply is low the price will increase. Gasoline is something with a high demand, but not a lot of supply, that means there are lots of people that need to purchase gasoline but there are not a lot of people produce it.

Now don’t confused gas stations with oil refineries. Yes, there are a lot of gas stations that sell gasoline, but they all get their gasoline from the same refineries. Knowing that with the few refineries we would be out of gasoline. This kind of gives the refineries the power to sell gasoline at whatever price they want, know that we will still buy it. The basics of supply and demand is the more of something we have the less its worth. So by keeping few refineries to produce the gasoline, they can keep the supply low. Whereas when it comes to the demand side, people will need

In this case it would be President Barack Obama. Someone running for president could almost get away with just focusing their campaign on gas prices. For example, “Every few years, gas prices go up; politicians pull out the same old political playbook and then nothing changes,” Obama said. “And when prices go back down, we slip back into a trance. And then when prices go up, suddenly we’re shocked. I think the American people are tired of that. I think they’re tired of talk. This gets a lot of people’s attention, asking themselves can he really fix our gas crisis. So not only can a president be blamed for the high cost of gas prices, but also it could be the one and only reason he got into