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Gas Prices

Essay by   •  February 24, 2011  •  Essay  •  815 Words (4 Pages)  •  1,310 Views

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Gas Prices

People in the United States have been battling gas prices for some time now. The price of gas effects everyone's lives. High gas prices put a crimp on many peoples budget. Gas prices effect more than money spent at the pump. Almost everything in the United states is shipped to the consumer. If gas prices go up then the cost of consumer products will go up. Many people need gas to drive to work. Gas prices continue to rise making people in the United States feel the effect. Gas should be made affordable so it does not negatively effect the lives of many Americans. If people spend less money on gas they will have more money to spend on other products. If gas prices go up any more it will hurt the nations economy.

Gasoline is the bloodline that keeps America moving. Our personal vehicles alone use 65 billion gallons of gasoline and diesel fuel each year, and that number is projected to increase by 2.6 percent each year (How Gas Prices Work). Tracking gas prices can feel like a roller coaster ride. They're down one month, up the next, before shooting up more than 30 percent in a year, like they did from 2003 to 2004. Plus, they're different depending on where you look(Flemming 38). Other countries, and even other states and cities, can have very different gas prices from our local gas stations. Many people do not understand how gas prices are determined.

Price increases generally occur when the world crude-oil market tightens and lowers inventories. We will discuss who controls the crude-oil market later. Also, growing demand can sometimes outpace refinery capacity. In the spring, refineries perform maintenance, which can place a pinch on the gasoline market. By the end of May, refineries are usually back to full capacity(Flemming 34).

In order to reduce gas prices more efforts need to be made to increase production of oil. Refineries are getting less oil to produce gasoline. Since the refineries are getting less oil they have to sell the gasoline for a higher price. If the refineries stay full they can reduce the price of gasoline. The country needs to find more resources to help keep the refiners full.

The war in Iraq does not help the price of gasoline. If we go over there, there is always a possibility a well might get blown up. People have the fear of losing Iraq's oil so that helps the oil prices stay high. Every time there is a threat on oil production gas prices increase.

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