Sunday, February 26, 2012
8 reasons why gas will hit $5 a gallon this year
This article is one that none of us want to see when it comes to gas prices. Currently, barrels are going for about $100 a barrel compared to the $75 a barrel last October. The average price right now is $3.62 which is ten percent higher than it was only two months ago. One reason gas prices will continue to increase is because of the situation we have in Iran. With the U.S. embargo with Iran, we have continued to look for even more from the smaller country of Japan as they have cut more oil ties with Iran as well. Another reason is due to the economic recovery in the U.S. As we continue to improve the economy, this means that we will have to suffer higher prices and with any recovery, the demand for oil-based products will increase. A third reason is that with summer approaching, history shows that there is typically a boost in demand for gasoline with all of the vacation driving that takes place. This is very unfortunate to read because I think we are all already worried about securing a job for the summer and on top of that a great deal of expense will be added on having to drive too and from work. I'm sure many of us seniors are hoping to save as much as we can to pay off loans and these gas prices are certainly going to take a large portion of our cuts.
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4 comments:
How about the fact that a weaker dollar leads to higher prices at home? It will be more expensive for the US to import the oil, raising the price for consumers at home. I'm surprised that wasn't covered in the article.
I agree that gas prices are becoming more and more of a burden, yet we've heard this before. For the past two years we've heard numerous times that gas will hit $5. And yes, in some parts of the U.S. it is very to that point, so I guess I'll believe it when I see it. We also have to remember that gas prices in the U.S. are significantly lower than gas prices in European countries.
I'd agree with Leah, and the point that Anthony raised. I'll also be curious to see if these steepening gas prices prompt more research in fields of alternative energy, especially in transportation. The higher prices could be the incentive needed for firms to investigate other options.
This "$5 gas" phenomenon could lead to additional research in alternative energy but I think the first step will be something simpler: public transportation. Columbus does not fully utilize its potential concerning this. While a subway system would be very expensive, I think that a BRT bus system (like in Curitiba) would be successful and widely utilized.
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