Throughout the year of 2017, we have all noticed the increase of gas prices. Haven’t you wondered why such an important, everyday substance is so expensive? Aren’t you tired of putting fuel into your car to get to school or work, which the government wants and sometimes requires you to do, yet you have no idea why? This essay will explain the reasoning between the two questions, which is why gas has increased so much.
I picked this topic because it is important to the economic system and an important part of everyday life. We have used gas to get to important destinations such as school, work, meetings, to a friend’s or family member’s house. Along with that, the machinery we use take up a lot of gas and energy, making the percentages of gas and the amount we use increase tremendously throughout that. Gas has went up due to employment, limited supply, and the consumption amount that we use daily. Gas has been on high demand lately as more and more people run machines that will often generate on the fuel. With the production of new cars, businesses and new inventions, more gas has been used, increasing the amount of gas used. Haven’t you wondered why the prices have increased tremendously over the past decade? Although there has been slight changes in the prices yearly, overall, it had increased by a lot. Gas has been the highest it has ever been this past year and here is my explanation.
This year due to the newest president, employment has gone up as well as minimum wage. The minimum wage has increased by $3.25 going from $7.25 to $10.50. Due to the new profits, they had increased the amount of money for everyday products, such as gas to pay for the new changes. Although it had upsetted many people, they continued the changes yearly, despite the protests and complaints.
Other everyday items has increased in price also along with the taxes that are given out for each item that is bought. If we weren’t to increase the amount of our everyday prices, it would be nearly impossible to pay off the money for the profits given to the city without putting the country into more debt. We owe millions of dollars to different countries due to past wars and we wouldn’t want to add on to the increasing debt as it is not paid off yet. Although people may naively agree that increasing their wages is a good thing, everything else is increased so it doesn’t make too much of a difference in my perspective of the situation. Although that is speaking for the middle and rich class people as they would make and spend almost the exact same amount of money, it all just depends on what they do with their money. There is not much of a difference for the ones who currently work. Yet, for kids, elderlys, and the homeless, this have caused them more of a struggle to pay for things that they need.
Even if it doesn’t seem like the change in the prices isn’t affecting a lot, for the less fortunate people, it affects them way more. Due to the new employment, we would need to pay more money to companies to pay their workers, the more money spent on workers, the more the gas prices would go up to pay them off. Employment and the new wages have increased over these past few years, increasing the prices on gas.
The limited supply in gas is another reason that the price for it are increasing. Petroleum Exporting Countries limit amount of oil they give out to keep prices high. The company is otherwise known as OPEC and supports the people in need of help when in a crisis. The company supports and manages the oil in our country, making sure we have enough, yet also making sure we don’t waist a large amount of precious resources. The less they give out, the more people want the fuel and will pay more, giving them a good opportunity to make more money than they would usually. Most would call the way they overpriced gas a scam, yet, then again it is the only way we are able to travel and achieve the luxuries we have today as we need gas in our everyday lives.
So, in reality, we have no choice but to accept the prices they set out for us in gas. The gas prices also have currently increased due to the global usage of it and how much is used, reaching the limit quicker than expected, raising the prices. Due to the limited supplies in recently damaged areas, they aren’t able to get as much gas, giving the industry a chance to raise the prices higher. Although the company does try to support the recently damaged areas in every way they can, they are losing a ton of profit and have to charge others for that as they need the money as well.
Over the past few years, prices on almost everything has gone up and it has put many people into debt and has took so many chances away from people to make a proper living. In the year of 2016, we have reached our highest usage of gas due to the new production in cars, amount spent helping others in need and for everyone’s daily needs. It is predicted that this past year may set a new record for how much gas is used as more people have learned to drive and have became the age to drive. Another reason why this year could hold the record for the most gas used is because of the past incidents and accidents that have tragically occured this year. While we try to help and support the people in need, it also brings the money factor in transportation, gas, supplies and others. The limited money and gas supply is a part of the reason why the prices in gas has increased over the years.
Almost everyone can agree that we use gas daily right? We use an average amount of 9.33 million barrels of gas only in the United States per day as studies shown from 2016, we have not yet received the studied conducted for this year as we use more and more daily. With the new instalment of natural gas, it has been on high demand, using twenty-nine percent of our energy supply and thirty-three percent of our electricity. This upcoming winter is expected to be colder than usual, so, in response, we would turn the heaters on and use are car to travel more than we usually would to avoid the cold air and winds. Due to the new fuel, they have raised the prices as more is produced and more energy is consumed. Although, gas has been transferred to Mexico and Canada via pipelines, the pipes often break and there is a gas leak, raising the price in gas due to the amount lost. An example is that last year, one main pipeline had been damaged, we lost hundreds of gallons of gas due to a simple mistake. In return for that mistake, we had to pay for both the damages and the gas lost.
We often burn up twenty-five percent of coal, twenty-six percent of oil, and twenty-seven percent of the natural gas. In numbers, that is pretty high considering that we don’t have unlimited amount of supplies and Although gas prices appear to differ in different states, the amount for everything else would be higher or lower than what we pay depending on the amount of gas. Many may argue that we have plenty of fuel and the percentage rates are small. They may also argue that it wouldn’t have a big impact on the world and us.
In reality, the amount of gas we use in increasing in it’s amount and we may eventually start running out of material to make the fuel. The more we use the gas, the more amounts of supplies we waist and in result, the more the price will go up. Another argument would be that we could take money from the people with higher paying jobs and put it into the gas to make it cheaper. Although that would not be fair and would cause a lt of protesting and problems, leading to a bigger issue that what we have. They may give into the protests and lower the gas prices, yet take more money from us or start making prices higher than what would be reasonable.
For example, our everyday products could be priced two dollars more than it is currently to pay for everything just to pay for the amount of money lost. The last argument people may have on this issue is that it is for a good cause. In reality, it placing more and more people into debt with the way they continue to raise their prices, in result, may also put the country into debt. Gas prices have been raised because of the amount and the way we use gas in our daily lives. It is expected that both the usage of gas and prices will continue to increase for a while, or at least until we find another source of fuel. Although that would be harder than expected as we would need to find a safe, less expensive, and environmentally stable type of fuel.
It wouldn’t be likely that a new, efficient type of oil would be found so soon. The past few presidents have promised to lower the prices, yet never seem to accomplish that goal in their time of presidency, correct? Most would agree with that fact as there really isn’t too much of an option to change the way the laws are set up as it needs to be agreed on by almost everyone. Although the government may attempt to bring down the prices for gas, it wouldn’t be likely as it would bring more problems than it would solve.
Producing, developing and transporting the gas cost a large amount of cash, and to start a new project in trying to find a better type of gas would only increase the prices and take longer with high chances of failure in the production. The increase of gas is do to the wages, supply, and the increased usage of gas America uses on a daily basis. Although, unlike what most believe, it’s often not the government’s fault on the prices in gas as it mainly evolves on how much and how we use it. Do you believe that gas prices should be decreased anyways? The reasons for the increase of gas prices mainly evolve on how much we use it. These are the reasons for the gas increasing as of lately.