Gas Prices

Paper Summary:

This paper explains that one of the strangest issues about gas prices is that, even though they are rising rapidly, the variance of how much gasoline costs per gallon on any given day across the country is fascinating. The author points out that many people believe that the reason gas prices have risen so high is that America basically is at war in the Middle East now; however, there are gas stations across the country that do not buy gasoline from the Middle East and instead purchase it from gasoline and oil suppliers within the United States and other countries. The paper stresses that gas prices are rising so rapidly because demand is coming from not only consumer transportation but also from almost everything, which is brought to the various grocers, supermarkets, department stores and other stores, which comes by truck at least for some part of its journey. This increased price of transportation will result in increased prices for every item in the transportation-based economy.

From the Paper:

"Naturally, the reasons behind why gas prices are rising are important but how gas prices and their rise is affecting the economy is even more significant. There are several affects on the economy. First, those that are involved with the ownership of gasoline stations, oil refineries, and others that work closely with this type of product are seeing higher profits, but they also have to spend more money for the items that they need to create an end product for the purchaser of gasoline (Kirms, 2005). In other words, companies that buy oil from the Middle East and other suppliers are making money because the gas prices are so high. On the other hand, these same individuals must also pay more money than they used to pay to get the barrels of oil that they need to create gasoline. Many people think that the economy is being affected generally by gas companies and oil companies gouging the public to make huge profits. In reality, however, most of the gasoline companies and many of the oil companies are not actually making any more money, because it is all being spent to purchase what is needed to finally get the gasoline to the consumer."

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• Term Paper # 125351 : "Gas Prices"
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• Term Paper # 68480 : "Oil Production and Gas Prices "

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