This article discusses a recent spike in gas prices for the month of February and what is contributing to this increase in gas prices. Motorists have had the pleasure of seeing an eight percent increase in gas prices and the trend doesn't seem to be stopping anytime soon. The cause of the recent gas price spike and the reason for near future spikes is contributed to two factors.
The first factor deals with an increasing price for oil and Iran's threat to shut down the use of the Strait of Hormuz. The second factor is that taxes are increasing the price of gas as well. However, there is some positive outlook on the situation in the fact that the economy is stronger right now so people can afford to spend more on gas. Gas was relatively lower during the recession so the fact that gas prices are rising in a stronger economy is not as alarming. This article is mainly dealing with the direct relationship with the price of gas and oil and how increasing oil prices are increasing gas prices. It also puts a focus on the fact that foreign threats are creating a scare where the availability of oil supply is uncertain and driving up the price of oil, consequently driving up gas prices.
http://money.cnn.com/2012/02/29/markets/gas_prices/index.htm?iid=SF_E_LN
No comments:
Post a Comment