Why Are Gasoline Prices Going Up So High?
If everyone else in the world is paying a lot more for gas, why shouldn't
Americans? Take your average spoiled American who blames the Arabs for raising the gas prices unfairly in order to make a bigger profit. It's true, gas prices have gone up by a lot in the last few months, but is that unfair? Prices still are a lot higher in Canada, Europe and just about any other developed nation, according to Mike Royko in the May 2, 1996 issue of the Chicago Tribune. Ted Z.
Manuel in a letter entitled "Voice of the People" of the Chicago Tribune, said
"Most anywhere in Europe, gas costs are from $3.00 to $5.00 per gallon. We scream when it hits a $1.35 to $1.75 a gallon, which if adjusted for inflation actually is cheaper than 25 years ago." It seems that Americans just think the world owes them a favor. Maybe it's time that they start playing fairly and stop feeling so sorry for themselves!!!
According to many articles, Americans have a lot more to be thankful for than they do to complain about. For one, cars use gas a lot more efficiently than they did in the past. According to Royko, "even today's luxury cars give you better gas mileage than the cheapest Chevies, Fords and Plymouths did not that long ago." What does this mean? This means that gas prices should logically go up. It's the basic law of supply and demand. It's true that more Americans are driving, but the gasoline suppliers still deserve to get p...
big change." The price increase in Texas is already very sensitive, reaching nearly 5 % year on
Gasoline is one of the many conversation starters anywhere you go. People have different opinions on why gasoline prices are fluctuating at such a rapid pace. Some Americans have chosen a way of thinking towards the prices. Whether it be making up rumors or just plainly trash talking towards our government. You make ask yourself the same questions many economist do, why has the price of oil been dropping so fast?
In 2004, crude oil producers around the world expected a 1.5% growth in the world’s demand for crude oil. The actual growth rate was more than double the projections at 3.3%. This growth was due to rapidly industrializing of foreign countries such as, China and India. Therefore the lack of crude oil affected the supply of gasoline to consumers at the pump.
According to George Bernard Shaw, “Progress is impossible without change, and those who cannot change their minds cannot change anything” (Shaw, p. 330). In order to truly make a change, one must change the minds of the people. America’s automobile industry has done a stellar job at this. In recent years fuel economy has surpassed make, body style, and “beeps and whistles” to become the number one factor people considered when purchasing a new car or truck (Choi). This shows that not only are vehicle manufacturers working to reduce vehicular pollution by improving how our cars are built, but even those that aren't directly involved with the manufacturing process are aiding the cause by choosing to purchase vehicles they know will produce fewer pollutants and consume less gas per miles driven. This discredits Jackson’s claims that Americans don’t care about the
In order to first convince a wide majority of people that something needs to be done to stop the destruction of our environment, people first need to know exactly what is harmful about gasoline vehicles. In the United States, approximately 6.6 tons of greenhouse gases are emitted per person every year. Most of the greenhouse gas emi...
To understand the increase in gas prices, one must first identify the distribution of dollars paid per gallon at the pump. According to the U.S. Energy Information Administration (eia) in 2010, the annual average paid at the pump consisted of 68% crude oil, 7% refining, 10% distribution and marketing, and 15% taxes (see Fig.1). This shows an increase of crude oil over the 2000-2009 average of 51%. (e. I. Administration)
driving at 70 miles per hour uses much more gas than that of someone driving at 55.
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.
The Australian Broadcasting Corporation’s (ABC) news article titled, “Petrol price soars, more pain at the pump ahead,” discusses the rise in the price of fuel and its effect on Australian motorists. This article also discusses how this rise in the price of fuel occurred, mainly focusing on its effect on consumers (Janda 2014).
Price gouging is increasing the price of a product during crisis or disaster. The price is increased due to temporal increase in demand while supply remains constrained. In many jurisdictions, price gauging is widely considered as immoral and is illegal. However, from a market point of view, price gouging is a correct outcome of an efficient market.
Another key cause to the price inflation issue is the extended period of bitterly cold weather that loomed in the northern and midwestern parts of the U.S. throughout the winter months. This led to an “increased demand in home heating oil, which is widely used in the region and is virtually identical to diesel fuel” (Lang1). This increased demand for fuel coupled with the restrictions on exported oil allowed OPEC to jack up their prices an exorbitant amount in a relatively short period of time.
In conclusion, the effects of higher gas prices cutting back in vacation time, prices of everything is going up “inflation”, car companies making more efficient cars.
inhabitants. The electric vehicle also is far less noisy than those vehicles that run off of gas.
Many people sharing one polluting vehicle is better than each driving their own. For many people this is becoming an important issue.