Where Will Gas Prices Stop?
||By Anna Finger
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The number one issue facing the United States security and economic stability is the rising cost of gas. As large oil companies record profits that are unheard to man, we have
seen a dramatic price increase at the pump. In the past year alone we have seen a dollar p/g increase, and increasing at a rapid rate. This kind of inflation over such a short
period of time makes you ask yourself, "When will it stop, it can't keep getting higher can it?" Quite simply, to answer that question, the answer is yes, it can get higher. It
all relies on supply and demand. It is just like any other market, when there is a high demand for a product, the prices will continue to rise until profits have come to a halt
for a business.
Make no mistake about it, large oil companies want to make as much profit as possible, and they will continue to do so as long as there is a serious demand for it. If we curb
demand, and start feeding more interest into hybrids, and alternate fuels, than its possible that we could see the price plateau decline for a more affordable rate. One of the
more serious aspects that are facing the cost of gas is the U.S. economy and the value of the dollar. Since the majority of oil is traded on the dollar, we have seen that
inflation plays an important role here. As the value of the dollar weakens, the cost of gas at the pumps will also rise. If the economy strengthens any, then we will see the
prices might stabilize.
Many foreign car companies have been listening to the consumers, and have started making more efficient vehicles. Will the oil industry answer to these latest developments? Even
though you will be taking less visits to the pump, they can raise the prices even higher, so that they'll still making just as big of profits. The question is, when will the
demand for gas decline, and when will the oil industry stop its greed?