Home » Autos and Cars

Why Are Gas Prices So High and What You Can Do About It

Jul 1, 2008
Why are gas prices so high these days? Indeed, this question has been asked again and again by consumers these days as crude oil prices crossed the $120 per barrel mark early this year. This has resulted in putting a tremendous financial strain on the pockets of middle class families who commute on a daily basis by car. Given the current global outlook, the easing of gas prices does not seem a likely possibility in the short run. For those who are clueless as to why gas prices are so high, we offer you an explanation to the current situation, as well as possible measures you can adopt to combat rising gas prices.

To explain why gas prices are so high today, it is important to understand the relevant demand and supply factors in play. The fact is, today's high oil prices is a result of the world's demand for oil outstripping current oil supply levels.

In terms of supply, it is often the best interest for major oil producing countries such as the ones that make up OPEC to limit the supply of oil. This would enable these countries to maximize profits as they would be able to sell the limited supply of oil to consumers at a higher price given the high levels of demand. Moreover, countries such as the United States which possess large undiscovered plots of oilfields have been slow at opening these up for production purposes. This has resulted in an acute shortage of oil supplies.

Coupled with a shortage of supply is an ever increasing global demand for oil which has resulted in today's high gas prices. Industrial and economic growth in developed countries has often been associated with demands for oil and gas, as fuel to meet production needs. The United States is the number one consumer of oil and gas supplies in the world today. However, the rapid growth of developing countries such as India and China has resulted in an ever increasing demand of oil and gas as these countries seek to meet the fuel needs of their respective industrialization programs. Such a situation has only served to further increase oil and gas prices.

Given the current levels of oil and gas prices today, various measures may be adopted by consumers to reduce their spending on oil and gas.

One such measure would be to minimize the use of the car. Should you live near your work place, you might want to consider other alternatives of commuting to work such as walking or riding a bicycle to your workplace. Not only would you save spending on gas, you would also be able to get some exercise as well. That's killing two birds with one stone!

Alternatively you might wish to consider carpooling should you really require the car. You could form a carpooling network with your neighbors. One of you can drive a car with good fuel economy, taking the rest with him to their respective destinations and splitting the cost of fuel and maintenance each month.

Stop spending unnecessarily on gas. While there is little we can do to affect current gas prices, there is much we can do to cut down on our spending on gas. Take the first step today.
About the Author
Lewis Hopewell provides valuable advice at http://howtosavemoneyongasoline.com where you can learn to save on high fuel oil prices. Click Here to get his FREE gas saving eBook while it's still available.
Rating:
Please Rate:
(Average: Not rated)
Views: 140
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Accounting
    • Credit
    • Currency Trading
    • Debt Consolidation
    • Insurance
    • Investing
    • Leasing
    • Loans
    • Mortgage
    • Mutual Funds
    • Personal Finance
    • Stock Market
    • Structured Settlements
    • Taxes
    • Wealth Building
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Buying
    • Selling
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources