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May 20 2015


The Reason We Have High Gas Prices

Gas costs are at an all time high without a signs of price reductions. This issue makes several countries reconsider their strategies on that ongoing issue. Democrats and Politicians blame oil companies for any skyrocketing fuel prices.

Oil companies are raising gas and oil prices to receive maximum profits. Next, blaming on oil companies is simply not the solution, since it will surely increase the existing problems of rising fuel and oil prices. Also, providing $100 rebate will never be a simple solution either. The federal government is wanting to lower the price tag associated with producing gas by relaxing clean air rules.

These are definitely temporary measures used to try to reduce fuel prices. In lieu of addressing the difficulties honestly, politicians are trying their very best to gather votes by designing false promises in the name of reducing fuel prices.

Factors In Control Of Price Hikes:

The price oil plays a major role in contributing towards increasing fuel prices. deliverance and Production of a single gallon of fuel involves severe costs. Examples include costs of oil to refineries, refining costs and profits, distribution and marketing federal, costs and state taxes.

The price crude oil has doubled over the past two years. It includes also affected the oil exporting countries. An important dispute rose within the supply distributions inside Gulf of Mexico and Nigeria. Whenever you will find a major dispute, oil companies bid for the price tag on a barrel. The current dispute has finished Uranium enrichment and increasing poor relations in Venezuela.

The next major factor for surge in gas pricing is the growing demand across the world. Interest on cars has risen in China and India. United states consequently needs to buy them from another oil exporting countries in order to meet the increasing demand, simply because these countries purchase oil with the Usa. Sales of super cars have increased greatly. To illustrate, people nowadays always purchase SUVs that consume more gas than regular cars.

Manufacturing of oil is badly affected and in some cases decreased in quantity, as reserves are obtaining empty and environmentalists banned new drillings. Many refineries are apprehensive to switch to Ethanol, simply because of its excessive cost. California experiences higher fuel prices, because of its distance coming from the Gulf of Mexico pipelines and strict fuel requirements.

Environmentalists have banned additional refineries, which are increasing the present price rise. Additional refineries are of huge importance to extract fuel, without which this is a bit impossible to decrease the increasing fuel prices.

Finally, increase in fuel prices will depend on the supply and demand of this product. Current economic conditions and weak United states dollar also contributed to hike in fuel prices. Natural calamities for instance hurricanes and floods too contributed to the increasing prices in oil. To find out more about Erdgasanbieter wechseln click this link.

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