Why the prices for gasoline grow?

Why the prices for gasoline grow? Yeast does not grow as well as the price of gasoline in our country. it is said that cars will soon become a luxury. Just in the last week, the cost of gasoline at the Moscow gas stations has risen, on the average, by 30 copecks. People in the industry forecast that by the end of August the cost of gasoline could pass the psychological mark of 20 roubles per litre. Why does fuel rise in price? For how long will the price keep going up? Many people are trying to find the answers to these complicated questions.

3 thoughts on “Why the prices for gasoline grow?”

  1. The oil price rises during the summer because there is a larger demand for it during the summer. The good weather increases productivity and as a result more goods have to be moved. These goods are moved with fossil fuels and because of this there is an increase in the demand for oil but not a real increase in the amount of oil produced. Now the law of supply and demand dictates that the oil available should become more valuable because more people want it. The price then increases to meet the rising demand.

    For example, let’s say there are 10 million barrels of oil available and there are 20 million people each wanting a barrel of oil. This means that people want 10 million more barrels of oil than what is available. To counter this demand, the oil companies make it more expensive so that 10 million of the 20 million people decide that they don’t want the barrel of oil anymore because it is too expensive. As a result, the demand equals the supply. They also do this because they can make more money by selling it at the highest possible price.

    In the U.S. there were some oil refineries that about a month or so ago had “accidents” and parts of the oil refineries blew up. As a result, the oil companies charged more money for gas because they claimed that the “accidents” hindered the supply and with the decreased supply and unchanged demand, the price of the existing oil went up.

    This is an example of bad capitalism. Now they may have to pay money to fix the refineries, but if it costs them 10 million dollars to fix the refinery and the increased prices brought in an additional 50 million dollars, then they just made an extra 40 million dollars by blowing up their own refineries.

    On the other side of that I know a guy who started a business with only $5,000 and an idea to make these really neat computer chips. He was an electrical engineer and he and his friends started this company with that $5,000. Eventually his company was worth about $300 million(after several years). This means that anyone can become a wealthy person. They need only a small starting amount of money, good knowledge of how to run a business, and a good idea.

  2. victor, you are correct about the threat of inflation debasing currencies. However there is another facet in regards to the price of oil. Back when oil per barrel was around 147 USD/barrel I was told that it would plunge to 50 USD/barrel within 3 to 6 months time. Well i could really kick myself because sure enough oil went down to under 40 USD in December of 2008. Now, from that point on the price of oil is to be held at or below the 50 Dollar range for 1 to 1.5 years. This will bankrupt OPEC and other major oil producers of the world so that they can be bought up and consolidated by those who are causing all of this. I cannot tell you who is manipulating all of this because they are the men behind the curtain pulling the strings and men behind curtains have no name and no face. My educated guess is that if my source of information is once again accurate the 1 to 1.5 year time frame is indeed a fuse counting down to some cataclysmic global economic powder keg. What happens after that, who knows, but i sincerely think hyperinflation is on its way. Oil, Gold and Silver will become very expensive and it will probably be a good idea to own these things in the near future.

  3. Obviously, everybody needs transportation. As the population increases there is more need. So, there may be too little oil available to equalize the market. But the government has to provide enough currency so the additional population also has a pocket full of money. To say: More people requires more currency. The balance of pricing and money supply is always in flux as population increases.


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