Coping with High Gas Prices

In today’s economy, a huge problem is rising gasoline prices. Many people are complaining about the sudden increase in the price of gasoline, because of the economic hardships it represents. It will take hard work and brilliant minds to create an alternate fuel source.

There are many variables affecting the price of gas. Gas prices are rising rapidly, and there seems to be no end in sight because the demand for this fuel just keeps getting larger. Experts say the reason is the law of supply and demand. They go on to say that prices are about the same as they were in the 1980s once you add in inflation. The government has stepped in to combat rising gas prices in the past. During the 1970s and 80s, the federal government imposed price controls and a windfall profits tax on oil companies in response to sharply rising gas prices. Car makers get subsidies for producing flex fuel cars which offer the option of switching between ethanol and gas in response to price changes. But, ethanol is only widely available in the Midwest.

There are a plethora of reasons for the price of gas these days, but, probably the most significant is that the output of oil is not keeping up with the demand. (French, 2004) Also right now, high oil prices are being driven by China’s demand and by risk primarily due to uncertainty in the Middle East, Venezuela, and Africa. China, only one country within the global marketplace, has increased their oil supply by 30% in 2003. (French, 2004) Also, other countries are not filling our needs. Many countries we trade with are angry with us for being in Iraq. They feel that there is no need for our presence there. This is helping to influence their trading with the United States. Emissions standards are so high now that it is costing the oil companies more and more money to refine the oil. This needs to be complied to because if the gasoline is not up to par, then the companies cannot sell it. So, there is no choice for the oil companies but to spend the extra money. (French 2004)

Obviously, there are many bad effects of the increase in gas prices. The most obvious effect of the high prices of gas is that the consumer must pay more to get around places from day to day. It is ironic that a portion of our paycheck is going toward just being able to get to work in the first place. Consumers are struggling to fill their gas tanks while the major gas companies are recording record profits. It does not seem right that we are stuck, struggling for money, while the epicenter of the problem is raking in the money.With the amount of fossil fuels left inside the earth, it won’t be long before we expend our fuel supplies indefinitely. We will continue to destroy natural land in order to satisfy our need for oil. This will diminish the quality of the earth we live on greatly. Landscapes that were once beautiful will be only tools to get oil from. (Hardman, 2008)