Monday, March 12, 2012

Why Gas Prices are so High

Why Gas Prices are so High

As a daily consumer of gas from having a Dodge Caravan the price of gas affects me drastically as I live in the country. This effects me as I have to drive daily into town or to wherever I am going, this makes getting a bus pass pointless as I cannot get home with it. As I drive weekly I am always looking for the best prices of gas and the cheapest companies to get gas from. However, over the last 3 years I have noticed that the prices of gas have gone up and are inconsistent from week to week.

After looking at these articles and YouTube video of why gas is so expensive there were a couple things that were brought to my attention that I did not know before. In the YouTube video I was surprised to hear that the supply of oil has risen in the last 2 years however, the demand has drastically lowered because of environmental movements, people being more socially responsible for driving around and newer technology of where gas is being used more efficiently in an engine and also used with electricity. If the demand is down and the supply is up why is the price of gas rising? The answer to that is simple the only people who can police these companies are the government, however the government is majorly helped in finances by these big oil companies. This makes an ultimatum for the government whether to make money. This is shown by the US government and how when the Governors voted the people who voted for the oil companies to be able to sell oil wherever they wanted got 7% more money from the oil companies as the ones who didn’t. This affects us huge as our government is working with oil companies as a monopoly in our society. This allows them to control the prices, and allows them to be able to make sure these corporations are making money so they can keep connected with the government, because of this it is very unlikely that we will be seeing prices drop in the next many years to come.

Over the last couple weeks I have been monitoring the prices of gas and have come to conclusion that it is most likely to be cheapest on Tuesday’s. I find this is because it is the middle of the week and it may not be as busy as other times like the weekend. This is also true for business like restaurant, which may put there best special on a Tuesday to try and gain more business. Even if it is a couple pennies lower they are still making millions of dollars off Canadians and Americans daily. People are always going to need gas unless the power of electricity or another source can be used. Even if the demand is lowering the price will rise and fall depending on who needs oil, where the oil comes from, and the prices in the market. However we need to make sure that we these corporations aren’t using the government to their advantage and exploiting us the consumer.

By Quinn Stringer 10057082

March 12th 2012

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