Friday, May 13, 2011
Gas Prices: Reasons For Increase?
We all need gas. So gas prices are something that effects every American and it means we all feel that pain at the pump. In my city gas recently crested $4.00 a gallon and has recently dropped to about $3.90 but is expected to rise possibly past $4.30 a gallon during summer. As we all know gas prices rise in the summer because there is a higher demand for it in our country, but what are some other underlying causes? One reason gas prices have been going up is that other countries like Brazil and a few in Asia have been growing rapidly. To fuel this growth they need more gas and oil than they usually use and simple supply and demand states that when an object's demand increases so does the price. Also gas prices will rise here in the states if we have a busy hurricane season and the storms shut down oil rigs in the Gulf of Mexico