How Gasoline Prices Work

High desiel prices are a consequence of capitalism. As all fuel prices have been going up people are blaming the federal govenerment. They believe the president has influence of derterming the outcomes of tensions betwwen Israel and Iran. Some people blame incrased prices based on fears around the world. It all comes down to one thing to blame, capitalism. Calitalism can be great to an economic system because of its emphasis on efficienc and inbradible success rate at allowing those who control the means of production and resources to meet the demands of those with purchasing power. Capitalism is constantly evolveing and will impact the gap between current and future goals on oil prices.

Despite the real life anecdote described above, a lot of people don't understand why and how gas prices rise and fall. There's an increase in attention to gas prices when they're higher or lower than usual because that directly concerns them as a consumer. Even when gas prices are higher, consumers keep paying because there's not really an alternative out there besides buying a new environmentally friendly car. However, there's currently a much deeper problem in the United States related to gas prices. Today, in particular, gas prices are a lot less than they have been but most Americans brush it off and wonder something along the lines of ""Who is that bad for?"". I mean, fuels costs eat up a large share of earnings in the

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.

Central Idea: Gas prices are on the rise in the US recently because of three major factors: the price of crude oil, the increase in internal regulations, and the increased demand for the gas.

To understand the increase in gas prices, one must first identify the distribution of dollars paid per gallon at the pump. According to the U.S. Energy Information Administration (eia) in 2010, the annual average paid at the pump consisted of 68% crude oil, 7% refining, 10% distribution and marketing, and 15% taxes

The price of gas has gone up for the 30th day in a row, and with it tempers are rising. Increased demand for public transportation is expected to continue into the spring [1]. The impact of high oil

Each time a person residing in the United States pulls up to a gas station to fill their tank it costs more money. This is particularly true of the past four years. Many focus the blame on the American Government but there are a multitude of factors causing gasoline prices to be so astronomically high. Middle eastern war, environmental precautions and government all seem to have a hand in the price we pay at the pump.

The following article is regarding what is most important to everyone around us regarding the pricing for gasoline at the pumps. This is a topic that concerns most people on this planet, why are the prices for gasoline so high and is it regarding the greed of oil producing companies to continue to keep rising the gasoline prices as high as possible. We will discuss the many reasons why these fluctuating pricing keeps occurring within our world market. We will use the retail gasoline pricing between the

To begin, I believe it prudent to discuss the macroeconomic considerations of rising gas prices on both the income and substitution effect. As such, a brief but comprehensive introduction will be needed to help make inference concerning consumer behavior. To begin,

The demand of gasoline has increased steadily over the last twenty years. In 1981 the U.S. averaged 6.5 million barrels of gasoline consumption per day. By comparison, in 2004 the U.S. averaged 9.2 million barrels of gasoline consumption per day. For most of this time period, gas prices stayed relatively the same. This is because the U.S. refineries increased their production to meet the demand and maintain the equilibrium price. Also during this same time period worldwide demand for crude oil increased 27%. Crude oil producers also increased their production to meet the demand keeping prices the same.

Over the past two years, oil prices have increased very rapidly. “With OPEC production cuts and a growth in crude oil demand,” oil prices went from a 25-year low of $11 per barrel in February 1999 to a peak of close to $36 per barrel in December 2003 (Jablon 1). “Some analyst, however, said the cut could soon push crude prices above the psychologically important threshold of $40 per barrel and worsen the pain for U.S. motorists” (“Rising Prices Fuel Gas Clash” 1). During this winter, the price of natural gas has gone through the roof. This brings many questions to mind. Are the companies just raising prices? Is there actually a shortage that is causing the raise in price?

If a retailer prices its gasoline too high, and without regard to competition, the retailer's customers may take their business to another station with lower prices. If a retailer loses enough volume, the retailer may then reduce prices in order to retain its customers. When more people are on the road, typically in the summer months or during holidays, the price will increase. Crude oil is the greatest contributing factor when it comes to the price of gasoline. The resources it takes to remove it from the ground, then transport it, and then refine it are the factors involved in pricing. The Organization of the Petroleum Exporting Countries has a big part in the price as well in both in the United States and around the world. Speculation of oil commodities can also affect the gasoline market. The second major factor that contributes to gasoline prices is refining. Oil refining is done by heating the oil with steam and only about 40 percent of what remains is gasoline. To produce more refineries must chemically change some of the other products that were produced. Distribution and marketing makes up the remaining 5%. The price of transporting crude oil to a refinery then gasoline to a point of distribution is passed on to the consumer. In addition the price to market the fuel brand is passed on to the consumer as well. Other factors affect gasoline prices such as extreme weather, war or natural disaster in areas where oil is produced can also in turn

historical price; while the largest historical price peak was over $4 per gallon in 2008.

You may hate the gas prices now but if I had my way I would raise it a whole dollar more than what it is now. Now before you gouge my eyes out let me explain. Gas prices should go up a dollar for three reasons. First, we need to build a high speed rail system in America. We are long overdue for one and as our

The US consumed 142 billion gallons of gasoline in 2007 and the tax applied on it is 18. 4 cents on one gallon. All around the US, there are around 162,000 retail gasoline outlets. With the price of crude oil hovering around $100 a barrel, it is no wonder that concern is growing about the gas prices being so high. After all, modern economies are kept moving by this lifeblood. For instance, in the United States alone personal vehicles consume more than 140 billion gallons of diesel fuel and gasoline per year.However, there are several factors that contribute to the gas prices being so high. Given below are a few of them. Increasing Demand for Oil One of the main catalysts for the incessant rise in gas prices has been one of the most