Contact Us
Sign In / Sign Up for FREE
Go to advanced search...

Causes of increasing gas prices - Essay Example

Comments (0) Cite this document
Three years back the price of gas per gallon in the USA was only $2.69 (Saad, 214). The Gallup public opinion poll in 2009 showed that a majority of American citizens…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96% of users find it useful
Causes of increasing gas prices
Read TextPreview

Extract of sample "Causes of increasing gas prices"

Download file to see previous pages What is causing this rise in prices of gas? Is it merely supply and demand issues, or are there other factors that are influencing the rise in gas prices?
This paper has the general aim of being informative of the causes of the rise in gas prices. However, within this general aim, the paper has a specific purpose in trying to uncover that the rise in gas prices is not merely caused by supply and demand issues.
Gas prices in the USA are linked to international oil prices, as the cost of oil constitutes 70% of the cost of a gallon of gasoline. Cost of oil has risen. Brent oil prices are a measure of the prices of prevailing in the oil markets. Brent oil has risen by approximately 52 cents over the last two months, reflecting a rise in price of gas by 47cents per gallon in the USA. Four factors are believed to be involved in the recent rise in gas prices. These four factors are rise in demand for oil, inability of oil production to match the rising demand for oil, political turbulence in the Middle-East, and speculation in oil (Hargreaves, 1).
The United Nations outlook for oil markets in 2010 demonstrates the reasons for an expected rise in demand for oil. The forecast indicated that there would be a rise in demand for oil to the tune of about 1.5%, raising demand for oil to 85.7 million barrels per day. Two factors would drive this rise in demand for oil. The main driver for rise in oil prices would be growing demand for oil from the emerging nations, like China and India, and the secondary driving force would be the slow emergence from recession of the developed world (United Nations, 63). The rise in demand for oil in 2012 however, was not as large as expected. The International Energy Association has estimated that the demand for oil in 2012 will be 200,000 barrels per day less than the earlier forecasted estimate of 90 million barrels per day. The reason for this ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Causes of increasing gas prices Essay Example | Topics and Well Written Essays - 1000 words”, n.d.)
Causes of increasing gas prices Essay Example | Topics and Well Written Essays - 1000 words. Retrieved from
(Causes of Increasing Gas Prices Essay Example | Topics and Well Written Essays - 1000 Words)
Causes of Increasing Gas Prices Essay Example | Topics and Well Written Essays - 1000 Words.
“Causes of Increasing Gas Prices Essay Example | Topics and Well Written Essays - 1000 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Causes of increasing gas prices

Why are gas prices inflated

...?Why are Gas Prices Inflated 738294) Introduction There are numerous theories doing the rounds every time there is an increase in the price of gas.Increase in prices of gas is inevitably followed by economic instability with direct impact on inflation. In the 90’s the West Texas Intermediate (WTI) crude oil was priced at 20 dollars a barrel. However following the slowdown in the Asian economy in the late 90’s there was a sharp fall in price when the barrel came down to 10 dollars. This was also because there was abundance of supply since oil from Iraq had started entering world markets after the Gulf War....
27 Pages(6750 words)Essay

Gas prices

...of the modern age life style. In the contemporary age, there is massive consumption of gas even on the domestic level. We use gas heaters, gas ovens, gas stoves, and gas lamps. In addition to the in-house consumption of gas, a vast majority of vehicles on the roads use gas as a secondary fuelling source that works as efficiently as petrol does. The voluminous increase in the use of natural gas does not accord with its declining natural reserves. There is an inverse relationship between the two. Gas prices have risen almost all over the world in the past...
2 Pages(500 words)Essay

Cause and Effect on Gasoline Prices

...the price of gasoline. The depreciation of the US dollar when compared to other currencies of other countries contributes to the changes of gasoline gas price. This can be attributed to the fact that when the US dollar changes its value, there is a shift in the demand and costs of countries with different currencies. For instance the dollars depreciation against the Euro by half, the Countries using the Euro pay half more in dollars thus increases the demand. If the Us dollar depreciates, investors in return have to shift their capital there is the rise in price of crude oil gases hence affecting price of Gasoline gas...
3 Pages(750 words)Essay

Gas price

... Gas Price The price of gas has not been stable for several years in the global, regional, national as well as local levels. Many features have caused gas prices to escalate and this has caused many impacts to businesses as well as individuals. This paper will analyze various aspects of gas prices including its relation to the price of oil and the determination of gas prices. In addition, the paper will address the causes of escalating gas prices, impact of this increase in prices and recommend some solutions to this issue. Introduction There has been a tremendous growth in the global trade in gas. In the past years, there was no advanced pipeline infrastructure. In this regard, gas trade only occurred regionally. However, due... in the oil...
5 Pages(1250 words)Research Paper

Gas prices

...the idea of less dependence on oil import. Even though the United States has a hold to effect the gas price, it is to be understood that the market is not national but international. The American energy policy proves to be relatively undeterred force of supply and demand which allowed constituting the prices for various energy sources. The public consumption of the energy source is also effected through this policy. The prices that are thought to be particularly sticky are wage contracts, publication subscriptions and items from catalogues. (Labonte; Makinen, 2000) The totally market based national energy policy argues that the market prices may blend...
4 Pages(1000 words)Essay

Oil and Gas Prices

...Oil and Gas The price of oil has constantly fluctuated through the years, but never more so than in the past ten years. This erratic trend has caused many changes to the economic and political climate. The prices of commodities have also fluctuated because of oil price changes. Political tensions between and among countries can trace their origin to oil price fluctuations. In some instances, these tensions have resulted to actual conflicts and show of arms. And in other instances, it has potentially created fodder for wars and violence. This paper shall discuss the thesis that worldwide conflict is the cause for the constant fluctuation of oil prices. History has been riddled with many incidents of oil price increases due... , with...
6 Pages(1500 words)Essay

High Oil and Gas Prices

...Your full September 15, High Oil and Gas Prices There are various potential causes of rising oil prices around the globe and since crude oil prices make up a huge percentage of gasoline prices, hence gas prices are also skyrocketing. Dollar inflation is the biggest reason for rise in oil prices. All oil purchases are carried out in U.S. dollars and this proves the deep relationship between oil and dollar that is, oil prices rise when dollar falls. The financial crisis in the U.S., market speculation (Jeffords 1) and continuous flow of funds in the market by the Federal...
1 Pages(250 words)Essay

The Issues on Rising Gas Prices is not even pure gasoline. Gasoline is refined petroleum used as fuel for internal combustion engines. Within gas there is 10% ethanol, which is defined as a systematic chemical name for ethyl alcohol. According to the Department of Energy, the United States consumes about 20 million barrels of oil products per day. Of that, almost half is used for motor gasoline. The rest is used for distillate fuel oil, jet fuel, residual fuel and other oils. Each barrel of oil contains 42 gallons (159 L), which yields 19 to 20 gallons (75 L) of gasoline. This averages to about 178 million gallons of gasoline being consumed every day in the United States. Causes of Gas Price...
7 Pages(1750 words)Research Paper

Lower Gas Prices In America

...-dollar increase during the Christmas season and beyond. The impact will be significantly more for the low and middle-income Americans who have been left behind by the economic recovery that began in 2009. It is apparent that American household uses 1,200 gallons annually so if the prices continue to fall the people will save 15% that is about $400. In my opinion, this extra cash in shoppers will lead to a generation of half a percentage point in the economic growth at the end of the year (Schwartz et al, 2014). On the other hand, the falling oil prices will have a negative impact on the producers. The low prices will lead to slow domestic oil and...
2 Pages(500 words)Essay

What causes gas prices to fluctuate analyzed using the STATA software. The initial analysis will be able to group the collected data into different categories in order to determine the factors that have been identified from the data collection. The stratification will be used to initially identify the factors that have caused the fluctuations in prices of gas. The factors will further be classified into the economic and non-economic factors in order to present an effective analysis of the factors which contribute to the prices to increase. References Creswell, J. W. (2009). Research design: Qualitative, quantitative, and mixed methods Approaches (3rd ed.). Thousand Oaks, CA: Sage...
2 Pages(500 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Causes of increasing gas prices for FREE!

Contact Us