Market Economics: What Caused Gas Prices To Start Ascending?

Written by admin on June 4, 2013

Gas is one of the most important fuel sources throughout the world. Unfortunately, the cost of gasoline is steadily on the rise. Here are some of the key reasons why gas prices have started to ascend.

Like most things on the market, a high demand of a product tends to cause its price to begin to elevate. For example, the gas companies know that people travel more in the summer than any other time of the year. Past history has shown that even when the cost of gas rises, travelers will still pay the additional price of the gasoline.Want more? Click here/tag

Hurricane Season
Not only do hurricanes cause a tremendous amount of destruction, but they also disrupt the gasoline supply. In 2005, Hurricane Katrina caused gas prices across the country to instantly skyrocket. The offshore drilling rigs can become damaged due to the forceful nature of a hurricane. Also, the people who run the refineries have to be evacuated until the storm has passed.

OPEC is essentially the boss of the petroleum industry. At any given time, the organization can opt to slow down the production of fuel, thus causing the price to rise.

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