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Persuasive Essay – Gas Prices in America

Transportation is the bloodline that is running the American economy. Without the use of gasoline products it will be nearly impossible for people to move from one place to another and deliver products to the desired destinations. The oil prices are on a constant rise globally; every now and then we can see oil prices going up. Few years back the oil prices averaged between $1 – 2 a gallon and now the prices averaged around $3 and higher per gallon. (Rowe, 2008)

Tracking gas prices are like having a roller coaster ride, at one moment they are down a little and the other they are up again. At times they even shoot up to around 50% in a year. One other strange fact about gasoline prices is that they are different everywhere; different in different countries, in different states and even different in different cities. Americans have an unquenchable thirst for gas. Just by looking at the traffic around you can imagine what it would be like if there is a shortage of gas. America is definitely going to cripple if there is no gas.

Department of Energy reported that Americans consume around 19 million barrels of oil products every day, half of this amount is used by motors all over America whereas the other half is used as fuel oil, jet fuel, residual fuel and other oils (Department of Energy, 2010). The factors that affect the prices of gasoline are the cost of crude oil, taxes associated to it, refining of crude oil and its distribution. Out of these four factors the major factor is the cost of the crude oil from which the gasoline is extracted.

In recent years the demand of gasoline and diesel has grown globally causing a steep demand for crude oil and as we all know when the demands go high prices are also increased in order to control the increasing demand. The demand growth is the main cause that has taken the price of crude oil and gasoline on a record level (Rowe, 2008). As the cost of crude oil is increasing it is causing the cost of delivery to rise as well. The delivery of the gasoline within the country is done through large fuel trucks that are needed to be fueled by gasoline in order to run.

Along with the transportation cost the heavily implied taxes on gas is also causing its price to go out of hands of the consumers. Since the prices of gas are constantly on a rise some people prefer driving to gas stations where they can save few cents on per gallon of gasoline. It is one of the ways to save dollars on the gas budget, if one acts smart and follow a few sensible steps then he or she can save a lot on gas prices. Gas prices vary from state to state. There are several reasons behind it, the most important being the tax factor.

Different states imposes different amount of taxes on gasoline. So, one of the options can be to get the tank full from a nearby state which imposes less tax on gas and offers slightly lower price. But it is only possible if one is living near to that state else driving all way the long to a different state just to save few dollars will be not smart enough. One other way can be to look on the internet for nearby gas stations that offer lowest available gases prices. There are several websites on the internet that displays rates offered by different stations in different cities and states.

By doing a little search on the internet one can easily figure out that at which nearest stations he or she can get lowest gas prices. Competition is one of the factors that cause gas pumps to offer lower prices. If there are a lot of stations situated in some specific region than there are chances that there will be a price war between them and each one of them will be trying to offer lowest possible gas price. Keeping an eye on such crowded areas can also help one save few dollars.

Distance from oil refineries is also one of the reasons that affect the prices at the gas stations situated near to them. As the refineries are situated nearby the pumps have to pay a very small amount of transportation cost. The reduction in transportation cost allows these gas stations to charge lower prices from their customers as compare to other pumps in the country. So having car fueled from such stations can also help one save few dollars. Although following the above mentioned ways can help one save a few dollars on gas, but it is not necessary that these situations are present all the time.

There may be circumstances where these options may turn out to be not so feasible therefore instead of relying on these options one should try to drive less. Instead of driving one can opt for different mode of transportation like travelling through bikes, buses, trains or may be having a walk to the desired location if the distance is walk able. This will not only help us saving money but also our environment which is getting polluted by the fumes that are coming out of our vehicles (Girard, 2008). References Department of Energy. (2010).

US Energy Markets Summary. Retrieved August 16, 2010 from http://www. eia. doe. gov/emeu/steo/pub/cf_tables/steotables. cfm? periodType=Annual Girard, F. (2008). 44 Tips for Saving Money on Gasoline: Help for high gas prices. Retrieved August 16, 2010 from http://knol. google. com/k/44-tips-for-saving-money-on-gasoline Rowe, D. (2008). Gas Prices in America May Cause an Economic Depression. Retrieved August 16,2010 from http://newsflavor. com/world/usa-canada/gas-prices-in-america-may-cause-an-economic-depression/#ixzz0wpVx7MIv

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