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Gas prices around the world are influenced by a number of factors. Some of them are discussed below:
Amount of oil produced: Majority of the crude oil from which gas is made comes from the Middle East. If the oil supply starts reducing, there is less gas and this causes gas prices to increase all over the world. If the supply of crude is too high, the prices lower.
Supply and demand: Like everything else we buy, gas prices too are influenced by supply and demand. If there is a lot of demand, the price will be high; and if the demand is less, the price will be lower. At the moment, the demand for gas is very high and this has edged up the price quite a bit.
Wars: It sounds improbable but wars have an impact on gas prices. If you look back in time, you will see that gas prices have always been higher during wars. However, some experts completely disagree with this; but statistics prove otherwise.
Local taxes: All governments, including the US government, levies a tax on the gas. This tax varies from one country to another and depending on the government policy, this can increase the gas price in a nation. Even within a country, gas prices might vary because of local and state taxes as is the case in the United States.
Besides these, there are many other factors the influence gas prices around the world. Some of them are the stock market and the petroleum market. When fear is involved in these markets, gas prices increase substantially.
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