I want to discuss the current gas prices. Why do the gas prices change from day to day? Today the average gas price has come down about 40 cents, since early April of this year. Drivers in the United States are expected to use about 133 Billion gallons of gasoline this year; the 40 cent price break is about %53 billion in yearly savings if it were to stay in place for a full year. Then there is an increase in gas prices there is a tax on consumers. However, a decrease in gas prices is a tax cut. Lower gas prices are enough to cause a decrease in overall retail prices paid my consumers, the first such decline in two years. A drop in gasoline prices helps the consumer finances, however even with the drop in gasoline prices, consumers don’t seem as much in spending mood as they were earlier this year. Not all
…show more content…
State taxes and strict environmental regulations are two factors. Another is limited supply; the West Coast is far from domestic sources such as the Great Plains and the Gulf Coast, as well as from the Middle East. The highest gas prices are in Hawaii, where drivers are paying an average of $2.50 and Alaska, which doesn’t have any refineries despite all of its oil, drivers there pay $2.49. AAA’s reading of gas prices typically shows California pump prices about 30 cents a gallon higher than what’s paid by motorists nationally. Oregon and Washington State have prices comparable to California. With prices for natural gas so low, and prices for oil-based fuels so high, the idea of building plants to convert natural gas directly into liquid diesel and jet fuel is something more companies are looking into. A spokeswoman for Royal Dutch Shell said, “The abundance and affordability of natural gas in the United States provides opportunities to use the fuel in new ways that can enhance our nation’s energy diversity and offer environmental and economic benefits”. So, demand alone is not enough to push retail fuel prices upward, at least, not
State taxes and strict environmental regulations are two factors. Another is limited supply; the West Coast is far from domestic sources such as the Great Plains and the Gulf Coast, as well as from the Middle East. The highest gas prices are in Hawaii, where drivers are paying an average of $2.50 and Alaska, which doesn’t have any refineries despite all of its oil, drivers there pay $2.49. AAA’s reading of gas prices typically shows California pump prices about 30 cents a gallon higher than what’s paid by motorists nationally. Oregon and Washington State have prices comparable to California. With prices for natural gas so low, and prices for oil-based fuels so high, the idea of building plants to convert natural gas directly into liquid diesel and jet fuel is something more companies are looking into. A spokeswoman for Royal Dutch Shell said, “The abundance and affordability of natural gas in the United States provides opportunities to use the fuel in new ways that can enhance our nation’s energy diversity and offer environmental and economic benefits”. So, demand alone is not enough to push retail fuel prices upward, at least, not