123ArticleOnline Logo
Welcome to 123ArticleOnline.com!

ALL >> Automobiles >> View Article

Why Fuel Prices Go Up

By Author: Shiv Sadhawani
Total Articles: 312

Numerous forces can influence the price of gas at the pump, but fuel costs are only one part in the vast web of global economics. Gas prices have an impact on other parts of the economy as well. There are immediate effects of rising prices - that feeling of stunned disbelief as the numbers climb and climb while you fill your tank. There are secondary effects as well. You might decide against a long road trip because the gas would cost too much. When it comes time to buy a car, you might decide against a gas-guzzling SUV and find something with better mileage instead. Price increases generally occur when the world crude-oil market tightens and lowers inventories. Also, growing demand can sometimes outpace refinery capacity.

Gas prices also vary from state to state for several reasons. Taxes are probably the biggest factor in the different prices around the country. Additionally, competition among local gas stations can drive prices down. Distance from the oil refineries can also affect prices -- stations closer to the Gulf of Mexico, where many oil refineries are located, have lower gas prices due to lower transportation costs. There are also some regional factors that can affect prices.

World events, wars and weather can also raise prices. Anything that affects any part of the process, from the moment the oil is drilled, through refining and distribution to your car will result in a change in price. Military conflicts in parts of the world with lots of oil supplies can make it difficult for oil companies to drill and ship crude oil. Hurricanes have damaged offshore drilling platforms, coastal refineries and shipping ports that receive oil tankers. If a tanker itself is lost or damaged, or leaks its oil into the ocean, that will put a dent in the market as well.

In some regions of the country, gasoline is required to meet higher environmental standards in order to reduce the amount of smog created by burning gasoline. Producing this cleaner-burning gasoline can cause problems in refining, distribution and storage, which increases the cost of gas.
Certified Pre Owned Cars Houston Tx

New Cars Houston

Kia Dealerships In Houston Area

Total Views: 49Word Count: 364See All articles From Author

Automobiles Articles

1. Mesmerize Everyone Through The Aura Of Luxury And Sports Cars
Author: Sophietilley

2. Why Is It Beneficial To Buy Car Tyres Online?
Author: My Tyre Point

3. Simple Ways To Take Care Of A Small Or Medium Car Dent At Home
Author: James Elston

4. Ways To Introduce Used Vans For Sale In Surrey
Author: Ewan Thorpe

5. Things You Didn't Know About Ace Hand Carwash Technique In Surbiton
Author: Rhys Gibson

6. Travel Bike – Folding Bike Is The Best And The Most Practical Travel Bike You Can Have Now!
Author: Paul Pinigis

7. Harley Davidson Custom Parts In Brisbane Tips You Need To Learn Now
Author: Levi Fysh

8. 5 Points To Consider To Choose The Perfect Scooter For The Modern Woman
Author: Manisha Nigam

9. New Online Map Of Shell Petrol Stations In Slovakia
Author: FleetCor Slovakia s.r.o.

10. Biometric Identity Management Solutions By Cross Match
Author: VAISHALI ADVANI

11. Simcom Modules And Their Applications
Author: VAISHALI ADVANI

12. Esd Damage Control By Static Systems
Author: VAISHALI ADVANI

13. Solar Today Expo 2017 & Led India 2017
Author: VAISHALI ADVANI

14. Cars And Bikes
Author: Techie Mech

15. Meet Your Vehicle Towing Needs With Vehicle Towing Service
Author: Clayton Temaari

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: