This is a relatively unreserved problem when you put all the factors together as to wherefore floatoline equipment casualtys fluctuate so much. Supply and take away are the major reason why price fluctuate so much at the pumps.
Before we dive into the pricing problem, it is high hat to understand all of the be associated with gasoleneoline. The basis for all of the costs are crude oil + refining cultivatees + retail gross revenue / distri only whenion + taxes = the gas price. Of those costs crude oil represents well-nigh 69% of the expenses, refining expenses are 6%, selling of the gas at the gas station is 10%, and taxes (local, state, federal) are 15%. It is important to note that each of the steps in the process businesses have built in profits to sustain themselves. Gas fluctuates in price mainly due to the supply and enquire issues associated with crude oil because it represents the largest portion of the costs associated with what we pay at the pump. If you drove a car in the 1960 the price of gas was around $0.25 per gallon and if you adjust to inflation (average of 3.38%) todays price would be $1.41 per gallon. Obviously we are not stipendiary $1.41 per gallon in 2012; it s more like $3.25 $3.70 per gallon. fit in to kcgasprices.
com, there has been quite a bit of movement in price over the past 8 years (as seen in the graph below). The main reason to explain why the price of gas over time has make upd significantly high than inflation is due to the fact that todays demand is higher with a lagging oil supply.
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The large increase in price per gallon in 2008 was a casebook example of supply and demand when hurricane Katrina wiped out operations in the Gulf of Mexico. Katrina caused a significant drop in production, but demand stayed constant which resulted in higher gas prices. several(prenominal) months after Katrina shut down the refineries, supply exceeded demand vast and prices came down rapidly. There are several factors as to why the supply is has not...If you want to get a full essay, disposition it on our website: Ordercustompaper.com
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