Gas prices, whether high or low seem to cause an argument between people. Gas prices are such a conversational issue, because they affect almost everyone in the world. They affect people from any range of saving money because it cost less to fill up your car to hundreds of people losing their jobs. Some people benefit from the low gas prices, while others are hurt by them. It is the same way for high gas prices, this is why there is always such a huge argument between the people about gas prices. Although it would seem that gas prices can cause some controversy between people, there are actually several points of common ground between them. People who agree with low gas prices want them to remain low because it will increase their financial …show more content…
According to Jean Folger, in her article “How Gas Prices Affect the Economy” “Gas prices may continue to rise - some analysts have even predicted $6 gas by the end of summer - but it is possible, too, that gas prices will stabilize, perhaps giving the economy a better chance at recovery” (Folger). In Jean’s article she is describing that people will be more finically stable by higher gas prices because they help recover the economy. Everyone knows the American economy is not always perfect. When the gas prices remain at a higher rate, it helps stimulate the economy. The economy can be such a shaky thing in America, and high gas prices are one factor that helps recover it. According to Brian Moody in his article “Why High Gas Prices Are a Good Thing” “Why would high prices on anything be good? The reason is simple: Prices help shape consumer behavior in lots of areas, including clothing, food and housing” (Moody). High gas prices are helping not just people but the economy. Many business are being affected by low prices and not in a good way. Low prices make these businesses lose money. Low gas prices affect the prices of essentially dropping the price of everything because it cost less to transport them. These low gas prices are hurting the financial factor of many …show more content…
According to The New York Times, “The crude oil prices presents a good opportunity for state governments to raise their gasoline taxes to help pay for road repairs” (Board). The raise of gas tax can help fix many things. According to Scott Burgess in his article “It’s Time To Raise The Gas Tax By $1 A Gallon” “The federal government needs to put a $1 tax on every gallon of gasoline sold, which would raise about $140 billion dollars a year, according the estimated 136.78 billion gallons of gasoline used by Americans, according to the U.S. Energy Information Agency” (Burgess). $140 billion dollars a year can change everything for America. It can stop all the cuts we are having to do due to the gas
Scherer, Ron. "US to Tap Strategic Petroleum Reserve to Drive Gas Prices down." The Christian Science Monitor. The Christian Science Monitor, 23 June 2011. Web. 09 Apr. 2012.
Regular gas nationally now averages around $2.65 a gallon, compared to $3.45 a year ago. Now the law of demand states consumers will buy more of the product if the price falls; of course when gas was at it's lowest peak everyone was driving around with there a/c on. They would use gasoline more often since it was not hurting their pockets as much. Now there is some instances where other goods and services can drop from gasoline prices. This can include a lawn mowing services and automotive business.
I am a husband and a father of four lovely children. We need a large vehicle to haul all of us around town. And of course I would do anything to keep them safe and I always want to provide them with the best. Therefore, after the birth of our fourth child two and a half years ago, my wife and I decided to upgrade our Ford Explorer to a Ford Expedition. We got everything from the side-curtain airbags to the TV and DVD player. What we did not know was we also purchased a rather large unleaded gas bill. The first time we filled the tank it cost us roughly $35; today it costs us right around $75 to fill the tank. Obviously the price of gas has increased significantly in the last two years. The price increase is due to a fluctuation in the supply and demand of not only gasoline but also crude oil, which is needed to manufacture gasoline. In addition, several other factors are influencing a change in the price of gasoline.
Americans also became concerned about the gas supply and the possibility of being unable to obtain gas. It was reported that drivers in America were lined up out in the streets for fear of not being able to get gas for their automobiles.
Fuel prices is an area of concern for the motor carrier industry. Fuel prices are at an all-time high, driving the industry to make drastic changes. Individuals in the industry believe that by reducing the demand for fuel is the best way to address the current fuel issue. One of the leading alternatives to this fuel issue could be natural gas.
West, Jim. ?Different Views of Gasoline Taxes.? The Oil and Gas Journal August 14, 1995: 9.
Currently, the most important factor in the rise of gas prices is the increasing cost of crude oil. Unfortunately, the United States has three percent of the world’s oil reserves. (Horsley) In 2009, the United States was third in crude oil production as well as the world’s largest petroleum consumer. (e. I. Administration) Such consumption required and still requires the United States to import petroleum/crude oil from other countries.
The article by Mike Moffatt shows the price elasticity of demand for gasoline. According to Molly Espey the average price elasticity of demand for gasoline in the short- run is-0.26 and -0.58 In the long-run, which is a 10% raise in the price of gasoline lowers quantity demanded by 2.6% in the short- run and 5.8% in the long- run.Also, there are a studies were conducted by Phil Goodwin, Joyce Dargay and Mark Hanly at review of income and price elastics in the demand for road traffic and each of them has different study. Furthermore, the realized elasticities depend on factors such as the timeframe and locations that the study covers. If the gas taxes will rise, will cause consumption to decrease.
To conclude this analysis, it can be noted that any increases in the prices of fuel will increase Australia’s economy as a whole, in other words the higher the costs of logistics will increase the price of products (Australian Competition & Consumer Commission 2014). The consumers will have to handle the burden of having higher costs of products, which would create an inflation. With the increasing price of fuel, consumers might want to alter their lifestyles, such as using public transportation or even carpooling. Vacations and travelling will also have to be cut down. Australia requires further government intervention to control the price of fuel by subsidizing so that inflation may be curbed.
b. Opportunities and Threats: The increase in fuel prices is likely to continue into the distant future, requiring either reduced services to control costs or new technologies to accommodate. The threat of low cost, flexible companies entering the markets in a variety of places, cutting into market share in numerous small areas, taken as a whole, threatens to harm larger c...
What is the reason that gasoline and fuel prices are so high? Most people believe it is because of OPEC raising the price of oil. This answer is only partially true. In fact, there are several others factors that must also be taken into account when determining the cause of high fuel prices in the United States and in other parts of the world.
Finally, many car companies make more efficient cars and hybrid cars. Companies trying to boost their sales through efficient cars and lower gas cost for the consumer. Because of the higher prices of gas consumers are looking for more efficient cars. Gas prices left big companies like Ford, Toyota, and Dodge slow which it had a direct effect in the economy and the workforce. Many people lost their jobs over the passed six months because of the effect of the slow economy.
The drastically increasing prices of fossil fuels and gasoline were making it harder for a middle income people to afford conventional vehicles in the near future. The gasoline is a natural resource which is reducing the supply of our reserves every second. In order to keep the fuel prices in control...
While some people blame ethnic favoritism for causing such a problem, some others believe the change in fuel prices has nothing to do with ethnicity. They believe that monopoly is the main cause of the problem because a few key players currently control a majority of the market in Afghanistan. Even though people consider monopoly and ethnicity as the two main factors, a lack of pr...
Meat also consumes food resources in a shockingly inefficient way: it takes 8kg of grain to produce 1kg of beef, and 4kg for pork. But each kilo of grain may need a ton of water. And fuel oil is needed throughout the process, to fertilize the grain, pump water and to transport it.