Why Fuel Prices Go Up? - Cars and Trucks Article

By:Anil Tandon

Numerous forces can influence the price of gas at the pump, but fuel costs are only one part in the vast web of global economics. Gas prices have an impact on other parts of the economy as well. There are immediate effects of rising prices - that feeling of stunned disbelief as the numbers climb and climb while you fill your tank. There are secondary effects as well. You might decide against a long road trip because the gas would cost too much. When it comes time to buy a car, you might decide against a gas-guzzling SUV and find something with better mileage instead. Price increases generally occur when the world crude-oil market tightens and lowers inventories. Also, growing demand can sometimes outpace refinery capacity.

Gas prices also vary from state to state for several reasons. Taxes are probably the biggest factor in the different prices around the country. Additionally, competition among local gas stations can drive prices down. Distance from the oil refineries can also affect prices -- stations closer to the Gulf of Mexico, where many oil refineries are located, have lower gas prices due to lower transportation costs. There are also some regional factors that can affect prices.

World events, wars and weather can also raise prices. Anything that affects any part of the process, from the moment the oil is drilled, through refining and distribution to your car will result in a change in price. Military conflicts in parts of the world with lots of oil supplies can make it difficult for oil companies to drill and ship crude oil. Hurricanes have damaged offshore drilling platforms, coastal refineries and shipping ports that receive oil tankers. If a tanker itself is lost or damaged, or leaks its oil into the ocean, that will put a dent in the market as well.

In some regions of the country, gasoline is required to meet higher environmental standards in order to reduce the amount of smog created by burning gasoline. Producing this cleaner-burning gasoline can cause problems in refining, distribution and storage, which increases the cost of gas.

Digg del.icio.us Blink Stumble Spurl Reddit Netscape Furl

Article keywords: automotive, auto, cars, bikes, internet, website, transport, carpool, business, social, environment

Article Source: http://www.articles2k.com

Anil Tandon is a reputed automotive journalist based in India. Anil has written columns for numerous Indian dailies and auto magazines. He is currently working as a consultant to the Indian automotive industry. Anil is also involved with India’s Leading Auto Classifieds Site Indimoto.com www.indimoto.com which is also India’s First Carpool Site.

Top Cars and Trucks Articles
1). 2008 Chery QQ: Sneak Peak! By : Matthew C. Keegan China’s Chery Automotive Group is getting set to import as many as five vehicles into the US starting in the summer of 2007. These 2008 models are reportedly going to be cheaper than competing models in their respective classes, undercutting some models by as much as $10,000 per car. I have been doing a little investigating and have learned more about the Chery QQ, the three door compact that will retail for just $6995.
2). Geely Cars: Gotta Get One? By : Matthew C. Keegan I mentioned in a related article that the first batch of Chinese built cars to be imported to the U.S. is only a few years away. In that article, I discussed Chery Automobiles and how the company has its designs on the American market, particularly in the entry level category. Well, now a second manufacturer – Geely Automotive Company – is also planning on bringing at least one model to the U.
3). Why Ford Motor Company Is Losing Market Share Fast To Hyundai By : David Maillie Ford is fast losing market share to automotive companies like Hyundai. This article shows why and what Ford can do to turn themselves around before it is too late. Someone should definitely email this to Fords executives before it is too late.
4). How To Avoid Auto Repair and Service Scams By : David Maillie There’s a reason why auto service stations have one of the largest numbers of complaints with state attorney generals in every state. Some uphold good business practices and ethics, but most, unfortunately are all about profit and don’t care if they have to lie and cheat to get it.
5). Ford Focus Is 'Comfortable And Versatile' By : Kwik Fit The UK's best selling car at the moment; the Ford Focus, is a comfortable and versatile mode of transport, according to the manufacturers, who claim the latest model is longer and wider than before. With a variety of body shapes available in several trim levels, the Ford Focus costs from £11,395 on-the-road for the three-door 1.4 Studio model, to £19,200 for the 1.
6). 2006 Mitsubishi Raider: A Rebadged Delight! By : Matthew C. Keegan If you were to examine the new Mitsubishi Raider, your eyes would behold the unmistakable triad logo centered in the middle of its beefy looking grille. However, as you let your eyes run the full length of the truck’s body and take a look at its styling cues, you would see something different, yet very familiar. Indeed, apart from some fascia, body, and cabin changes, the Raider is without a doubt a Dodge Dakota.
7). Fuel-Efficient Ford Cars: The New Trend By : Jason Moore With gas prices soaring straight into oblivion, automobile customers and the rest of the auto market are looking for vehicles that would save their pockets from getting into trouble. Studies and research have found out that the numbers are showing that customers are leaning towards those vehicles that would assure them that they would not have to spend much on gas.
8). Jaguar X Type: The Classic Luxury Sports Car By : Jennifer Dylan Built on a modified version of the Ford CD 132 platform, the Jaguar X Type is considered to be just another version of the Ford Mondeo. Take away the badge and the name from the Ford Mondeo and put in Jaguar badges, you would be getting the the Jaguar X Type. In fact the platform which it was built on was just a modified version of the Ford CDW 27 platform which is what the Ford Mondeo uses.
9). How to Create Your Own Vanity Plates By : Kevin Anderson Vanity plates, for some people, are just an added expense, for in some states, they do charge people with vanity plates an annual fee for them. However, there are some people who would opt to have vanity plates so as to show off and tell people more about themselves. Aside from telling people what kind of person they are, vanity plates also serve as channels and media for people to shout out to the rest of the driving world some messages that they would like to get across.
10). 2006 Toyota Matrix: Value Meets Fun By : Matthew C. Keegan During the early part of this decade Toyota was examining its vehicle line up and the decision was made to build a car to entice young people who were looking for something that was small, fun to drive, and affordable. While the Corolla served faithfully in this capacity, Toyota needed something that spoke excitement. The Corolla just wasn’t that kind of a car and something radically different was needed.

New Cars and Trucks Articles
1). How To Choose The Right Car Cover That Will Not Damage Your Car By : Gregg Hall Not everyone is lucky enough to have a garage to keep their car in and even if you do you may be like me and have too much junk to be able to park your car there.
2). Peugeot 206cc. Open Cruising With a Little French Flair By : Kerry Plowright The French have long been regarded as the leaders in style, and this reputation is well justified in the Peugeot 206cc (coupe cabriolet).
3). Satellite Radio, the New Frontier in Broadcasting By : Jerry Cahill Do you enjoy more control over your radio listening? If you are willing to pay a small monthly fee you can have a much greater radio listening opportunity.
4). Are Flex Fuel And Biodiesel Viable Options? By : Mike Eggert Once thought of as only a dream, Flex fuel vehicles are fast becoming a reality. The high cost of gasoline and fuels like Diesel have prompted auto makers around the world to start building automobiles that will burn more than one type of fuel.
5). Find Auto Parts Fast and Enjoy Great Savings Shopping Online By : Ray La Foy Money can be saved by replacing these parts yourself, but sometimes trying to find the right parts to fix things up is nearly impossible.
6). Smart Shoppers Save More on Vehicles and Financing By : Ray La Foy Finding the best deals on automobiles will often involve the number and type needed and the kind of credit your company has.
7). How To Get A Cheap Car Rental By : John Layton Always look for the best car rental offer.
8). Should You Go Topless For Your Next Sports Car? By : Gregg Hall Living in Florida we have many days when a convertible is highly desirable, especially in the spring and fall when temperatures are really comfortable.
9). IRS Incentives for Hybrid Owners By : Michael Plante The hybrid car has not come into the world without a shroud of rumors following carefully behind. From rumors of exploding batteries, electrical and digital nightmares, and poorly met expectations letting down consumers, the hybrid has had to struggle to overcome many misconceptions...
10). Rising Car Arson And Insurance Fraud Costs Everyone By : David Maillie Car owners locked into payments they can’t afford with the increasing gas costs and our current economic slowdown have turned to arson to get rid of their debts.