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| *Ostroff, Fair and Company>>>Corporations |
Who validates the reasons gas companies use to explain the high prices? |
They are now saying gas prices are high because of demand. I don't think people are driving more now than before. Who checks their data? Gas prices are higher now for two reasons. One, world politics. The middle east is in disarray, Iran (a very large supplier) is creating all types of trouble, Venezuala's (US main supplier) leader, Chavez, is showing hit hatred for Americans, and African supply lines are facing civil war. Basically, 10% of what you pay is people's fear that supply could be cut short at any time for a multitute of reasons. Couple this with increased demand (not by the US, by China and India) and you have a increase in demand and a decrease in supply, causing an astronomical price increase. All of those outsourced jobs have helped low-income countries be able to afford to drive. Couple this with cheaper and cheaper abilities to produce automobiles (India is coming out with a $2,500 car), and you have a new base of consumers that weren't there before. It's not that people are driving more, it's that more people are driving. China is growing at 12% per year in production capabilities, this is eating into the worlds supply of energy. India has a similar growth rate. Just because they say demand is increasing, doesn't mean it's local demand. Source(s): CPA, Accountant Corrupt politicians and governments. |
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