Gasoline: The Reason Prices Are Soaring
It seems that whenever we need it the most, gas tends to raise in value. It’s said that in 2006, the prices of gasoline will remain high. Why did all of a sudden gas become so expensive? The answer is simple: supply and demand. Unfortunately, we are the reason gas prices are going up so much this year. Now more than ever have we been needing to get places, and this calls for more gas. Gas is limited, and the more we ask, the more the price goes up.
Do you remember when gas costed less than two dollars per gallon? What happened to the good ol’ days? Apparently more and more people started driving. The disappointing outlook of 2006 gets worse when people find out that gas may rise up to three dollars per gallon, which it already has in some bay areas. For a vehicle that holds 19 gallons, it would cost almost $60 to fill up. The world used 3.4% more oil in 2005 than in 2003. We will burn up 2.6% more oil in 2006.
Surprisingly enough, the U.S. does export oil. About 20,000 barrels per day compared to 10,000,000 barrel imports. No major retail-brand gas stations’ gas comes from only the U.S. Middle eastern oil plays an important role in their sales. The largest oil field in the country is in Saudi Arabia, meaning that the U.S. will buy some of it’s oil from there. Buying oil from other nations is going to cost more than using our own oil. This is another reason why prices have gone up.
Do you ever wonder where the money we pay for gas goes? Making gas available to us is a long process that involves production, refining, and transportation. In April of 2006, the components of a price per gallon were as follows:
-54% was price of crude (or natural) oil
-21% was price of refining the crude oil
-2% was the cost of transporting it
-17% was taxes
-6% was the profit to the refiner, transporter, and retailer
Although it is hard to believe, the U.S. is lucky considering the circumstances. Almost every other place outside of the U.S. pays more for gas than we do, due to the higher government taxes.
The truth is, the only thing that we can do to save us money in the long run is conserve oil. We need to use less gas. But how? There are alternatives. Using hydrogen powered or electric vehicles saves us money. Using ethanol also saves money and helps the enviroment. Using a hybrid vehicle can save you some money also, for example, let’s compare a regular gas-powered vehical to a hybrid. Assuming the price of gas is $2.50, a 1999 Honda Accord gets 27 miles per gallon, and a 2006 Toyota Prius gets 55 miles per gallon , we can use the equation: $2.50 x distance (1/27 – 1/55). Just plug in the distance and that’s how much money you will save.
We all need to work together to lower these high prices. Car pull, ride a bike, or use a different source of fuel. If we start doing these things, we will benefit in the long run. Changes may not come immediately, but if we stick to a good, resourceful routine, we can make a difference for the coming months.
