HOMEWORK: How The President Influences Gas Prices

Sure it’s frustrating when you’re paying four bucks for one gallon of gas, and we all love to point fingers, but should we be pointing it at the man in the oval office? According to the American Fuel and Petrochemical manufacturers (AFPM) gas prices not only depend on global supply and demand but crude-oil is the largest factor in United States gas prices. “Combined federal and state taxes account for about 14 percent of the average price of gasoline, marketing and distribution costs account for 10 percent, and the remaining 5 percent covers the costs of refining” states the AFPM. The president isn’t controlling 100% of gas prices and picking an amount on a whim. According to gaspricesexplained.com the weak economic conditions in the United States in 2008 and 2009 led to a lower demand in crude oil which kept prices down. The worldwide economy is now in recovery which is resulting in a higher demand for crude oil, driving gas prices back up again. According to the Atlantic in 2004 a barrel of crude oil was roughly $37, in 2011 that price jumped to $111. Consumeraffairs.com crude oil prices have raised 27% since August 2015. So instead of pointing your finger at the president, let’s all rally and point it at crude oil prices because my gosh a college budget is already hard enough.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s