Rising Gas Prices

Laulie Barker '23 ~ November 2021

People often use transportation as a connection in various aspects of life. Rising gas prices could be making that connection a challenge.

Causes:

1. Demand: During the pandemic, people were prohibited from travel. With businesses and borders open, Americans need to fuel their cars in order to get to work, school, and leisure activities. As the need to drive increases, the demand for gas rises as well.

2. The lack of supply: Oil companies struggle to meet the high demand for gas. Prices of gas continue to rise significantly because gas has become more valuable.

3. The overseas markets: The Organization of Petroleum Exporting Countries (OPEC) that heavily influences the United States oil supply is reluctant to increase exports because it could devalue the price per barrel of oil. OPEC could suppress the supply of gas, meaning that the gas prices would escalate.

4. Political Leaders: After Biden was elected, he put an end to the production of fossil fuel in the United States, which in turn made the country reliant on trade with foreign countries. Countries magnify the prices of oil to make more money.

Effects:

People who rely on gas will spend a greater amount of their income on gas, so they will have less money to spend purchasing products, paying employees, and paying off debt. Employees may be laid off and businesses may go out of business because the demand for their product is less than their supply. Business owners may drive the prices of their products up because deliveries and production costs may increase.

Fixes:

During this expensive time, some changes made were investing in more fuel efficient cars in order to decrease the spending on fuel. Likewise, people have begun using public transportation or carpooling. In the future, citizens may choose to continue their efforts in creating more reliable sources of energy or restarting the digging for fossil fuels.

Title Photo: dariasophia, Pixabay