Gas Prices

Topics: Petroleum, Automobile, Internal combustion engine Pages: 5 (1782 words) Published: January 28, 2013
Fluctuating Gas Prices
Kyle Bonzelaar
Davenport University

Gas prices have been on a rapid rise the last few years and not many people are happy with it. It limits those on a budget for how much they can do and how much they are willing to drive. Lately, gas prices have been fluctuating in price and going up but are more recently going back down, which gives people a little more flexibility at times in their schedule. It lets people do things such as travel and more, that they were not able to do last summer when gas prices were right around as well as over $4.00 a gallon, which made people cut back on those unimportant things. Supply and demand plays two major factors that have an impact on what we might see gas prices at. Ash says, “Gas prices are expected to continue to drop leading to Election Day and continue to fall through the end of the year (Richardson, 2012).” According to Clifford Krauss, oil experts have been talking about how since Israel and Gaza are not oil-producing areas, that we should not see oil prices spike up and cause us to pay more for a gallon of gas (Krauss, 2012). As gas prices have been steadily increasing, it has had a negative effect on the consumers that use it daily.

According to Jim Motavalli, “the main five reasons as to why gas prices have been on the steady rise can be related to demand, global politics, speculation, seasonal, and fuel-efficient cars (Motavalli, 2012).” The seasonal reason really gets to everyone who drives, because gas prices increase in the summer that causes less travel. People do not like entering a new year with record high gas prices since it scares them. Demand and global politics are the two reasons we as people should be the most worried about, because if demand were to decrease then we would see gas prices take a giant leap that would cause people to travel less yet again. Over the past two years, more and more fuel-efficient cars have been produced and that leads to people buying them to save money. What those people do not know is since they do not use gas that often, it causes gas prices to increase that hurts us drivers as more and more people are buying them. Also, since electric cars, of course, do not use gas at all, which is why some states are talking about alternative taxing schemes for them (Motavalli, 2012). If more and more fuel-efficient cars are going to be on the road, it is going to hurt those people who drive trucks the worst because they dislike the fact of seeing gas prices on the rise all the time. “Analysts warn that oil could become even more expensive in the second half of the year as supplies struggle to catch up with rising demand” (Motavalli, 2012).

Along with this comes the use of gas for those who use it daily. On a daily basis people are driving from home to work, home to school, home to the grocery store, home to the gas station and many more. For some people they have cut back on some of that and invested in public transportation, which does save them a little bit of money that they can spend at anytime on gas. With the decrease in oil lately, we are going to see substantially lower gas prices, which is going to help every driver out on a daily basis. “The average price Chevron realized for a barrel of oil in the United States dropped to $95.44 in July and August, compared with $103.91 in the quarter from April through June (The Associated Press, 2012).

With the way gas prices have been lately, it makes the consumer consider whether or not to believe that gas may rise or fall, which changes a lot of things for those who drive. Robert Rapier says, “U.S. gasoline prices have been on the rise for the past two months - and are presently $0.15 per gallon higher than they were a year ago – I expect that gasoline prices will fall rapidly in the weeks ahead. There are four reasons for this” (Rapier, 2012). In a later article, according to Reuters, gas prices continue to rise, lifting consumer spending...

References: The Associated Press. (2012, October 9). Chevron Cuts Its Forecast for 3rd-Quarter Earnings. The New York Times.
Cobb, K. (2012, November 23). Did oil decide the last three American elections? The Christian Science Monitor.
Hicks, J. (2012, March 3). The claim that won’t die: Did Obama want higher gas prices? The Washington Post.
Krauss, C. (2012, November 21). Oil Prices Stay Steady Despite Mideast Conflict. The New York Times.
Motavalli, J. (2012, March 3). Five Reasons Gas Prices Rise. Forbes.
Oil prices fall on Greek bailout doubt. (2012, November 28). Retrieved November 28, 2012, from Sky News website:
An article based on who is going to help with the new oil bailout.
Rapier, R. (2012, September 10). Four reasons gas prices are about to fall fast. The Christian Science Monitor.
Reuters. (2012, September 28). Gas Prices Continue To Rise, Lifting Consumer Spending In August. The Huffington Post.
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