How the Rising Cost of Fuel Has Affected the Quality of Life

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  • Topic: Petroleum, OPEC, 1973 oil crisis
  • Pages : 4 (1290 words )
  • Download(s) : 371
  • Published : February 10, 2011
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Petroleum well-known as fuel is very useful to our lives. According to Department of Energy, the world consumes nearly 85 million barrels of oil per day. It is completely shows that everybody needs fuel. We use them to fuel cars, airplanes, heater to our home, and to make products like medicines, plastics and materials. The first fuel prices crisis began in 1973, which there was a heavy transfer from the industrialized nations to the oil-exporting nations (Coleman & Cressey, 1990). While in 2004, fuel prices were starting to rise and everything correlated with people and goods has changed. Many factors affect it, such as changes of unfinished oil prices, the transparency of oil markets and rules that affect prices of gasoline (FRES, 2004). In reality, the price of oil has raised would be because of strong contribution by OPEC country, which is Middle-east countries, like Iraq. Whereat, Iraq is one of the fourth highest countries that produce oil to the world. It directly changed the quality to people lives in all over the world. Because fuel is one of natural resources and very important to fulfill people needs. Its effect of gaining will spread in all sectors of countries natural environment. The largest negative influenced part of the rising cost is economy sector. Several industries or companies could not compete without approaching qualified products, because they require lots of energy, raw materials and transportation fees which have strong relationship with fuel. Therefore, those companies planned to raise their product prices so they still can achieve more profits from it and raising the inflation rise. It will also affect the most to some developmental countries. For example, Indonesia as net country importer oil will have negative influences to many industries sectors (Indonesia: Data and Forecasts). Briefly, the raising cost of fuel will eventually influences the economy activity, to the profit or the production of a company and inflation. At...
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