According to GasBuddy.com, gas prices could reach a three-year high in 2017. And in the long-term, gas prices are likely to climb back up to record levels, experts say.
Rising gas price affect every one, not just drivers, some gas station in the south and mid west is completely out of gas due to the rising gas price. The gas station owners can not compete with the larger oil company who control the flow of oil. We are already seeing a ripple effect from the high gas prices.
But, just because the United States lost some of its dependence on crude oil, does not mean that higher prices at the pump will not affect the country. The country is at an economic high, but high gasoline prices can dampen these boom times. Consumers pay more at the grocery store, the hardware store, and the taxi to get where they need to go.
Another profit challenging effect of fuel costs is rapid change and price volatility. Generally, logistics companies generate fuel surcharges based on the fuel prices of the previous week. When the cost of fuel rises rapidly, there is a lag between the price of fuel and the fuel surcharge rate.
As a result, American gas prices are at their lowest point in years. So from economic, to political and environmental reasons, the recent trend of falling gas prices basically boils down to the issue of oversupply. As consumption climbs though, and investors allow the scales to balance, the issue of oversupply will eventually subside. And so the oscillating pattern of supply and demand will.
Causes of High Gas Prices in the United States 27 October 2011 Abstract Prices at the gas pumps, in the United States, are forcing many to cut back on household items and other necessities, in order to be able to afford to drive to and from work. This paper will discuss the causes and effects of rising gas prices in the United States. Rising Prices.
High crude oil prices in 2010 greatly impacted on the prices of gasoline which differed from one retail station to constrained supplies. This resulted into increased gasoline prices, hence affecting demand at the same time (Ginn, 2012). Conclusion. There are many causes of changes in gasoline prices. The factors that cause these changes include.
Cause and Effects on Today's Rising Gas Prices Natural gas is not a renewable resource, since there is a fixed amount of it trapped in the Earth. However, many people carry the misconception that there is a very limited amount of natural gas, and that we may use all of it up. This isn t tru.