The Real Reason Gas Prices Are Rising - Essay Example

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The author of this paper "The Real Reason Gas Prices Are Rising" focuses on the factors that influence oil prices. The price of gas is determined mainly by world politics and make that Middle East politics, speculation, and forces of supply and demand…
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The Real Reason Gas Prices Are Rising
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Download file to see previous pages The fragile economic recovery following the Great Recession of 2008 is in jeopardy, much of it depends on consumer confidence which is quickly falling as gas prices rise. President Obama concluded a multi-city energy tour last week in an effort to boost that confidence but the nation’s leader can do little to rein in prices, or so we’re told. Predictably, Obama is being attacked by the Republican opposition for not doing enough to control prices and for what they deem a flawed energy policy which, if corrected would drop prices to what GOP Presidential candidate Newt Gingrich claims could be $2.50 per gallon.
As consumers pump gas into their vehicles the dollar amount is literally right in front of their eyes as the digital display quickly calculates the total. People feel they are being taken advantage of when that number increases every week for the same amount of product. Some blame oil companies, others their local gas station or regional oil refineries. While all of these entities profit from gasoline none are the real culprits, none have much, if anything, to do with the escalation of prices. The global demand for refined gas does have a major impact. In other words, the person pumping their gas is more to blame than oil companies. During the recent recession, the demand for gas dropped because unemployed persons don’t drive to work and fewer were taking a vacation. As the recovery is taking hold worldwide the demand goes up along with prices. (Faucon, 2012). “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.” The average consumer would be better served to pump their gas into a more fuel-efficient vehicle. This would lower demand, therefore, the price. (Motavalli, 2012). During his cross-country energy tour, Obama called for Congress to stop subsidizing the enormously prosperous oil companies with billions of dollars in tax breaks. ...Download file to see next pagesRead More
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