Gas Fiscal Policy

Gas is something we need in our day-to-day life to operate vehicles that bring us places we need to go. Without gas we can't go on living our normal lives. Sadly the prices of gas are not pleasant to the consumers at times, but we have to deal with it. Around the year 2012 gas was a staggering $ 3.60 average and was $4.00 at time, the people were asking the government to mandate gas prices. Although if the government were to mandate gas prices, the prices would be more appealing to the consumers, but not for the long run.

People endlessly discuss the cost of gas. Whether gas costs are rising or falling, car owners and financial specialists alike will point out gas costs as an indicator of the shifting condition of the economy. Market analysts would surmise that a surge in fuel costs would prompt more carpooling and less driving altogether. However, generally, fuel consumption has had a moderately stable demand with shifting costs. This is what influences the demand for fuel. No matter the cost if you have a car and you want to use it, you have to fuel it. People must go about their lives to complete their everyday tasks, and therefore pay little mind to the cost of fuel. Subsequently, cost has little effect on demand.

A recent price shift that all American drivers have experienced is the constant fluctuations of gas prices. As I turned 16 in 2013 gas prices were on the rise ranging from $3-$4 across the nation. For many Americans it caused them to make economical decisions on what vehicle to buy taking on extra jobs to pay for gas, cutting out vacations because of the high gas expense. During 2013 I would even struggle filling up my dodge pickup every week and realizing how much money I was spending just on gas. However, in 2016 prices have decreased to $1-$2 dollars. If we look back on the history of gas prices we can analyze that reason gas prices change so often is based on the amount of crude oil. Since oil is the main input for producing gasoline, so if there is a rise in oil price than gasoline price must rise as well. Many factors go into affecting gas prices, but one example in particular is the detriment of

Introduction The economy fluctuations in today’s world have become one of the most important factors in determining the direction of an economy growth. Non-stable economy can harm and slow the development and growing rate of a nation. There are many tools to stabilize the economy and reduce the frequency and the altitude of economic fluctuations. Among these tools are the fiscal policy and monetary policy. This report discusses the fiscal policy and why the governments use this too to stabilize the economy and encounter the economic fluctuations.

Many people think that it is corporate greed and that putting a cap on gas prices would solve the problem. Remember the 1970s, when people had to wait in long lines for gas? The reason for that was because many places didn 't have any gas to sell. Gas companies stopped selling gas to them because the gas companies couldn 't make a profit. They couldn 't make a profit because there was a cap on gas prices. Learn from

Although the United States isn’t the most expensive place to buy gasoline, American’s feel that their paying too much. American’s use over “25.9%” of the oil used around the world and produce less than half of the amount American’s consume. American’s consume more oil than the whole European Union put together making it very reliant on oil (Wieczorek). Right now, the average price per gallon of gasoline in American is $3.061(November 8, 2007). A month ago we were paying around

Do Oil Companies Make Imbalanced Profits off the Inflated Sales of Gasoline? To answer the question of whether oil companies make unwarranted profits off the inflated sales of gasoline, we first need to have some understanding of how the oil market works. This is to try get to the bottom of what really makes oil prices fluctuate with such a high frequency, which results in worldwide ramifications. The most basic or raw material for the oil market is crude oil, also known as petroleum, which other oil products are extracted from. This happens to be the world’s most traded product.

The cost of fuel is ever climbing on a perpetual price ladder. The price of gas has doubled in the past decade and will continue to rise at an even faster rate than ever before. Why do gas prices continually swell? Who owns the oil being drilled

How Are Oil Prices Fabricated? The history of the oil industry started off smooth and inexpensive, but as years went on, more and more uses came of the commodity which drove its value up significantly. There is a lot of money to be made in the oil industry, likewise, there

In 2016, the crude oil price movement prices were unpredictable. The OPEC reference basket dropped 10 percent to $43.22 per pound. The ICE Brent and NYMEX WTI both went down by 8.4 percent with ICE Brent at $47.08 per pound and NYMEX WTI at $45.76 per pound. This showed that

Gasoline prices can be directly related to oil. In 2014, “a barrel of Brent crude cost $110,” but in 2015 it cost only “$60” (“The high cost of falling prices; Deflation.” Economist. 21 Feb. 2015: 69. eLibrary. Web. 22 Mar. 2016.). The barrel of crude oil was hence cut by “45%” and “in America the price of gasoline has fallen by 35%” (“The high cost of falling prices; Deflation.” Economist. 21 Feb. 2015: 69. eLibrary. Web. 22 Mar. 2016.). As you can see here because crude oil is a main component of gasoline, their prices correlate - meaning that when one price shifts downward the other will follow. Crude oil and gasoline are not the only products that have seen a decrease in value in the past few years. All around the United States and in many other areas of the world, the value of products are being slashed.

Eric Bach-Crosby Gina Cassady ECO2013 October 11, 2015 Falling Oil Prices Just as any market experiences it’s fair share of ups and downs, the oil industry is currently running down a slippery slope. From coast to coast across the United States, the price of gasoline has plummeted to levels were last seen during the recession of 2009 (Krauss). Although prices have somewhat improved at various points throughout 2015, average prices have remained low and are expected to stay that way for the next several years. Many people are simply overjoyed that their wallet seems a little less empty and it now takes only half the cost to fill up their gas tank, however, in the greater scheme of economics this is definitely not the best for the economy

In his book, Black Gold: The story of Oil in our lives, Albert Marrin said, “By the fall of 1918, it was clear that a nation’s prosperity, even its very survival depended on securing a safe, abundant supply of cheap oil.” Crude oil is one of, if not the most

Everyone notices it. They struggle with it, fight to survive through it, and when push comes to shove, they end up paying it anyways. It is gas taxation. Taxes on gas hit wallets hard and drain bank accounts. The federal gas tax was a mere penny per gallon and first came into effect in 1932 as a temporary charge. Nine years later, the gas tax became permanent through the Revenue Act of 1941 in order to help fund the war effort and increased by half a cent per gallon. In 1959, President Eisenhower raised the tax to four pennies per gallon to fund his creation of the interstate highway system. As of 2005, the federal gas tax alone is 18.4 cents on the gallon. Unfortunately, gas taxes are a necessary evil and not only hit Americans at a