Literature Review on Reasons for Changing Petrol Prices

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I have chosen three relevant articles that I have summarised and reviewed in order to achieving my research aim. Two of the three articles support the hypothesis that civil war is indeed the reason of increasing prices of oil and the other articles states that there are other forces that affect the pricing of petrol especially when looked at in a local point of view.

Articles FOR research hypothesis

The main country that South Africa imports its oil from is Saudi Arabia, a neighbouring country to Syria. Syria is said to have gone through civil unrest beginning of 2011, this unrest has gone on till this day. The reasons for this these wars are usually based on government instability and bad leadership. The government of Syria used chemical weapons against its own people; this caused the uprising of rebel forces. Even though Saudi Arabia is much too stable to be affected by issues in Syria, the tensions caused the oil prices to elevate this is due to the fact that the markets have evaluated the situation and fear that disruption of supply is a possibility which entails that Oil won’t get delivered to its destination, therefore making the supply low and the demand high. Ingrid Pan of the Market Realist writes: “Military action in Syria has the potential to disrupt normal oil production and transportation operations throughout the Middle East” Even though an Intervention by the United States of America in Syria has nothing to do with Saudi Arabian matters, it still has the potential to disrupt the operations and systems put in place to produce petrol, to export Crude Oil and to transport it, it may not be a certain reading of the situation however Oil is such an essential resource that precautions have always got to be set in p...

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...ion about the price regulation in South Africa. The article is well written and easier to understand compared to the two previous articles that are FOR the research hypothesis this most probably due to the fact that it is written in a South African point of view and tackles various issues to explain the pricing of petrol such as Currency and pricing regulations. The article is very informative and has a strong argument against my research hypothesis that high petrol prices are caused by civil wars in the countries where the oil is imported from. This article will serve as a good argument and be well considered for my conclusion and recommendations.

I found the article too short and lacking in updated information price of petrol per litre and the current exchange rate. It was also a difficulty finding this article through many webpages that have similar titles.

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