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Monday, January 31, 2011

Are gas prices rising again?


Today as I was passing by a gas station I noticed that my gas which was once at $2.70 A gallon has gone up to $3.15 a gallon and I start wondering why is it that at the hardest times gas prices decided to go up? So I do a little research and it's mostly for two reasons.

The first reason is pure business, the OPEC (Organization of the Petroleum Exporting Countries) which is comprised of Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates, and Venezuela have not really been producing more oil since the 1980's so as the population goes up supply and demand takes in effect and prices go up.

The second reason is not so well knows, Oil is priced in U.S dollars so when our currency is doing well prices per barrel are cheaper to purchase but as our economy declines and the value of our dollar lowers then it makes oil cheaper for the rest of the world to buy.

So what happens when they do not produce more oil and other countries start using more oil than normal because it is cheaper? Gas Prices in the United States go up and I'm forced to pay more money per mile, so like a vicious cycle we work in order to have work so we can survive... we need a change and we needed it years ago.

21 comments:

  1. Despite domestic gas prices going up, what we are paying over here is still much cheaper than most other countries like Europe

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  2. The prices in Venezula are really cheap...

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  3. Gas price in Germany is about 7$ a gallon. Quit whining.

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  4. Electric cars need more investment!

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  5. Agreed with GGMP

    Electric cars need more investment, but more importantly, we need to stop just paying into everything as americans. We give them the power when we idly sit by and let them gouge prices

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  6. still not as bad as it was a few years go

    brotosterone.blogspot.com

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  7. time for alternatives.. :D
    thefitmuscle.blogspot.com

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  8. i cannot afford gas :(

    your friend,
    ectomorphmuscle.blogspot.com

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  9. $60 buys me a bus pass which is good for a whole year. I like all the weirdos that you find on the bus. They're inspirational.

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  10. I live in a small town so it's much more cost efficient and healthy for me to ride to most of my destinations. I do have a car for the longer trips but I do manage to save some money on a 5-10 minute longer bike ride.

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  11. In the UK it's hit $7.80 (converted to $)
    ...most of that being tax!

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  12. @anoodle Just a stranger on a bus huh?

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  13. One of the reasons I don't get to go out that much is because gas is so expensive :(

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  14. Ugh, gotta hate gas prices, but I know they are ten times worse everywhere else, so I try not to complain too much...

    Love the blog! Following:
    searchingthehaystack.blogspot.com

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  15. Filled up this morning. Total bill = $77.00!! OUCH!

    blundersfrom6foot2.blogspot.com

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  16. i don't like how we are so dependant on oil!

    thispostisirrelevant.blogspot.com

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  17. Hopefully this trend will revers soon.

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  18. Hello~! I think it'll go up more as economy recovers.. Soon we will see 4's again. Then it'll be hybrid car's world.

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  19. Ugh. If only public transportation was better where I lived.

    Following and supporting.
    http://kensingtongoremovieblog.blogspot.com

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