Rising Gas Prices

No Room Equals Big Bucks There are many another(prenominal) different elements that contribute to rising accelerator pedaloline footings. The major fountain for increasing gas prices has to do with refining capacity. Even if anoint were inexpensive, we would still have a problem converting it into the gas that fuels our economy. That is what keeps the gas prices high. When gas supplies are short, due to an inability to refine rocky crude oil color into gas efficiently, prices increase. This is a component of supply and motivation economics. In a positive aspect, rising gasoline prices do serve a purpose; they curtail usage so that we do not eventually run out of fuel. If gasoline continued to retain its cheap price, despite how much was available, passel may pull up to their favorite gas topographic point only to see caution tape around the pumps because tell on consumers would not curtail their consumption. Contrary to what some think, gasoline isnt the only product refined from crude oil. In his phrase Gas Prices Rising, Matt Rosenberg wrote that, Only about 51.4% of an oil barrel is used to make gasoline; the rest of the oil is used to make other products such as kelvin fuel, asphalt, road oil, heating oil and liquefied refinery gas (Para 3, Rosenberg).

This makes oil a high demand commodity around the innovation and because most countries dont produce enough oil of their own, they have to import it from other countries that have more than they realize what to do with. This also creates a global market in which prices can fluctuate depending on who needs oil and how much. For example, mainland China has a booming economy and requires more oil outright than they did in years past. Increased global demand causes a shortage in crude oil supplies which results in higher(prenominal) prices for these commodities (jet fuel, lubricants, gasoline, heating oil). Therefore, the price per barrel of oil increases to curtail demand. This price increase eventually gets passed along to the consumer. As the price for these products increases, fewer... If you sine qua non to get a full essay, order it on our website: Orderessay

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