Rise Of Gasoline Prices Essay, Research Paper

Jeff WoldhuisPeriod 25-22-00 Gasoline prices in the United States have been drastically rising since the beginning of the twenty-first century. These gasoline prices will continue to rise particullarly in the United States until the end of summer. But they will remain at a certain high from now on. The concept of supply and demand is also being used to explain the increase of these prices, where the demand of gasoline is rising faster than the supply for this United States gasoline. These gasoline prices will continue to rise thanks to the rise in crude oil prices and a somewhat tightening of supply (industry analyst). It is expected that along with the rise of these prices will come a boost in interest rates by the Federal Reserve in order to help keep the inflation in the U.S. down at some kind of low. Gasoline is made up of volatile, flammable liqiud hydrocarbons derived from petroleum and used for fuel in internal combustion engines like the engines of automobiles. In other words, without gasoline the world wouldn t run and work quite the way that it does today. Despite the many attempts made by President Bill Clinton, Vice President Al Gore, and the entire Federal Reserve. The resolution that seems most obvious to the top American economic figures is to wait this situation out. They are hoping that by the end of summer, when the demand for gasoline is down because all major U. S. traveling would be done, gasoline prices although remaining fairly high would drop from what are now drastically out of control prices. As for what the everyday person can do to

try to help drop the gasoline prices, is to find others means of travel so that the mid-eastern countries sending the United States the majority of crude oil needed to make gasoline will realize their plan to rip us off is not working and they will give in. This is the only way to cut back on the outragously expensive gasoline prices we have right now. At the present time, prices of gasoline locally in southern California are all disbobulated. Prices now are at about $1.60 a gallon. In the past few months prices of gasoline here have been jumping up and down, going as high in some places as $1.75 a gallon and as low as $1.52 a gallon, but always remaining fairly high. This is a drastic change from the last couple years gasoline prices being at $1.20 or $1.30 a gallon, prices that Americans were used to paying. The last time a major influx in gasoline prices incident happened in 1997. Like now, do to the low amount of crude oil that is being supplied to the U.S. from the mid-east countries, and the huge demand for gasoline, the overall prices of gasoline have sky-rocketed through the roof. Also like now despite the many attempts made by many people throughout the nation to lower gasoline prices, the only thing that seems to be an effective plan for lowering the gasoline prices is to wait it out. All these problems seem to be the case for whats going on in the U.S. in 2000. But waiting it out hasn t always been the case for the United States getting gas prices to drop. In 1983 the surge of rising gasoline prices was solved when United States economic leaders were able to sign agreements of more barrels of crude oil to be produced and shipped to the United States daily.