By Taylor Weisensel
People spend about $2,000 a year to fill up their gas tanks. Not only that, but the price of gas is always changing. For example, one day I passed Kwik Trip and the price for gas was about $2.75 a gallon and then the next time I passed Kwik Trip, it was about $2.99 a gallon. We also hear our parents talk about how gas was about 50 cents a gallon when they were kids; so, we can see how much the price of gas has varied throughout the years. With that being said, gas prices should be lowered and stay at the same price and not vary between different prices.
One reason gas prices should be lowered is because it affects the supply and demand of the gas company. According to a website called “Eia”, “factors on the supply-side that affect prices include natural gas production, net imports, and underground storage levels. Increases in supply tend to pull prices down, while decreases in supply tend to push prices up.” The reason gas stations up their prices is because of the decrease in supply of gas. there’s so many gas companies there shouldn’t be a problem with being able to supply gas. In order to keep gas at a lower rate, we need to have gas companies keep on supplying gas so that the price of gas doesn’t increase.
From the graph on the right, we can see that gas prices have increased throughout the years and then started to slowly decrease. This is due to the fact that there was a lot of gas supplied in the earlier years because there wasn’t as many drivers out on the roads. We see in 2012 that the prices increased the most and that was because there was a lack of supply in gas, but then they got more supply years after and the prices started to drop again.
Another reason why gas prices should be lowered is because it's something that everyone who drives a car relies on. If they run out of gas and they can’t afford more, how will they get places? According to “Debate.Org”, gas prices should be lowered because as a nation that depend on gas on a daily basis, it's important to keep the cost reasonable. That just ensures that everyone is able to afford gas.
Prices should also be lowered because people feel that they are wasting their money on gas and it isn’t allowing them to be able to pay for other necessities that they need to live. According to “Debate.Org”, someone said that gas should be lowered because people spend too much money on gas, which make it a bit harder for them to buy food and rent. Some families already struggle to put food on the table for their family and provide them with shelter, let alone having to spend 2,000 dollars on gas annually. If gas could be free, that would save so many people money, but it can’t be because then the people working at those gas companies wouldn't earn a profit. However, they can work to make gas a reasonable price so people aren’t spending 2,000 dollars on gas every year.
Overall, gas prices should be lowered because there’s enough gas to be supplied to keep it at a lower price. It also should be lowered because it's something that everyone who has a car needs to use, so it's is a necessity for those who do have cars and people shouldn’t have to pay large amounts for things that are necessities.
Works Cited
Bradford, Harry, and Harry Bradford. “How Much Americans Spend On Gas Every Year [GRAPHIC].” HuffPost, HuffPost, 4 Mar. 2012, www.huffpost.com/entry/gas-prices-infographic_n_1316919.
Folger, Jean. “How Gas Prices Affect The Economy.” Investopedia, Investopedia, 12 Mar. 2019, www.investopedia.com/financial-edge/0511/how-gas-prices-affect-the-economy.aspx.
“U.S. Energy Information Administration - EIA - Independent Statistics and Analysis.” What Are the Major Factors Affecting Natural Gas Prices? - FAQ - U.S. Energy Information Administration (EIA), www.eia.gov/tools/faqs/faq.php?id=43&t=8.
“Should Gas Prices Be Lowered?” Should Gas Prices Be Lowered? | Debate.org, www.debate.org/opinions/should-gas-prices-be-lowered.
Overall I thought this was a really interesting idea. As a personal user of gas, I would love to see the gas prices go down. However, there are so many reasons why gas prices fluctuate between each week. I think it would have helped add to your opinion if you researched where our gas comes from. It’s important to know where the gas supply is coming from. Just because there is a BP right by a Kwik Trip does not mean that road has a high supply of gas. Maybe look into the imports and exports of gas for the US. Recently the US has been able to make more gas than Saudi Arabia, therefore we don’t need to import gas from them anymore. This is why gas prices were incredibly low a few months ago. But now that the gas prices are rising again we need to know why. This would only add to your article otherwise really nice job.
ReplyDeleteI would have to disagree about the logic in lowering gas prices. Gas is not a renewable resource; it has a point at which it will run out. Looking at the producers point of view, if the gas prices are extremely low, consumers will burn through it much more quickly and eventually run the resource dry. As well, the gasoline industry will not be a very lucrative market if the prices are so in favor of the consumers. More and more companies will exit the industry, reducing the product supply and essentially driving the price up again. Some could claim that government subsidies to the sellers could counter this price drop. However, that money will be taxed out of consumers, so in the end, aren't they still paying the same price just through different means? The fluctuating gasoline prices probably occur because of minute shifts in the demand for gasoline depending on weather, holidays, major events, etc. that can affect the amount of driving people do. There really is no way to counter this as these externalities cannot be controlled. It is unfortunate that a percentage of society today cannot put food on the table or effectively provide for their families but messing with the gas market is not the way to address this issue.
ReplyDeleteI think this is a great topic for debate. I would love to see gas prices go as low as they can possibly go to make driving that much more affordable, but I do know that there are a ton of factors that go into deciding the price of gas. I think it would be awesome to know exactly why the prices are doing what they are doing at each point of time. I know that as technology is getting better at extracting the fuel, the prices will go down, but as the oil supply runs out, there is a raise in price. Additionally, I wonder how the expanding electric car population will impact the price on gas. I feel that price might actually continue to rise as there won't be enough buyers of gas to keep the price so low in the future. Overall very well written and I love the topic.
ReplyDeleteThis article does bring up some interesting points about lowering gas prices and keeping them stable, but i would have to disagree, this would not help the economy. Gas prices change when the cost to get gas goes up or down. If the gas prices were stable it would be at a higher price with defeats the whole purpose. Lowering the gas prices would create a problem for the gas companies, they would no longer receive a profit or at least as big of one. If gas prices had to be lowered and the price of importing the gas was more expensive than the selling point who would want to sell gas anymore.
ReplyDeleteI don't really see how we could just lower the price of gas, it isn't a renewable resource; eventually we could run out of it. The price of gas does depend on the supply and that sometimes isn't a stable rate which is why the price fluctuates from time to time. If you really want the price to go down we can either start to drill more out of the ground until there isn't any left, or come up with more practical and supplementary ways for transportation. Both of these will lower the price of gas in the short term, but only one of them is viable in the long run. I wish that lowering gas prices was a super easy thing to do. It would be nice to just cut a tariff or sign a bill, but unfortunately that isn't how things work.
ReplyDeleteFrom the eyes of a poor teenager driver, lowering gas prices sure does seem like a good idea. However, the realistic idea of lowering gas prices is not that simple. The big factor in our gas prices comes from where we get our supply of gas. America imports their gas from other counties, meaning the individual gas stations do not produce their own gas. With that in mind, having more gas stations does not mean we have more than enough supplied so we should lower the price, it means we are providing more places to sell this product, therefore we must import more. When the prices of gas lowers, it is because America is able to produce more gas than our importing source can. However, when the prices increase it is just the opposite-we are needing to import more because we cannot produce our own. So hypothetically it would be amazing to have lowered gas prices, however realistically looking through our economy we can’t afford lowering our prices to what they used to be. Inflation does have an affect on the price of all our goods and services, and you can specifically see it through the price of gas.
ReplyDeleteI thought that your article was very interesting and makes sense from a consumers point of view, but in the eyes of a producer, gas prices need to fluctuate due to factors such as supply, location of supply, etc. Bringing in gas from within the United States is much cheaper than importing it from Saudi Arabia. That's why gas prices were lower recently when we supplied gas from within the country. Since gas is a nonrenewable source, the supply of gas is limited and will fluctuate based on how much gas is available and from where. Also, if gas prices were very low, consumers would spend more and use it quickly before gas prices will rise again, which will happen as a consequence of consumers using that gas that quickly. Though there are many suppliers of gas, the areas from which oil is extracted are limited, meaning that though there are many companies selling gas, they are providing it from similar locations affecting the overall supply of oil. Gas is just a good that will always fluctuate in price because there are too many dependent factors preventing a fixed rate that will not be worth sacrificing in the end.
ReplyDeleteThe prices of gas aren't easily changeable; there are many factors on which they depend, and while it would be convenient to have them lowered, it's not always possible. There are issues regarding supply of gas that result in an increase in price per gallon. As gas becomes either more scarce or more expensive to produce or buy, consequently, the prices for a tank of gas suffer. Refineries experience shortages and unexpected maintenance issues that ultimately impact the cost of gasoline as well. As helpful as it would be to lower the prices for the impoverished or frequent drivers, it's easier said than done seeing as there are multiple external factors that the price of gasoline relies on and it simply cannot just be decreased for the sake of our affordability. Almost every American would approve of decreasing the price of gas but unfortunately, there are unpredictable problems in oil refineries or cutbacks in oil and gasoline production in other countries that we rely on for imports, so there's not a simple or possible solution unless production could increase or refineries could shape up.
ReplyDeleteI agree it would be better for consumers if gas prices were lowered, but the gas companies want to make the most money possible and almost everyone needs gas. It does not matter what we want and there is very little we can do to control the gas prices. If you were the owner of the gas company you would want to make as much money as possible.
ReplyDeleteTo build on my fellow commentors, a factor that also needs to be considered is not just American consumers but the entire supply chain itself. Many factors go into gas prices including the seasons themselves. Per gallon gas prices tend to be cheaper in the winter as the formula is changed (winter-grade vs summer-grade fuel) using less crude oil and different additives in the refining process. Furthermore in the international market, crude oil exporting countries such as the Organization of Petroleum Exporting Countries (OPEC) in the middle east, Russia, and Tanzania are negatively effected by lower oil prices. When global prices fell drastically between 2014 and 2016 from a peak of $115 per barrel in June 2014 to $35 per barrel in 2016 (due in part to over production) many nations who relied on oil as a major part of their GDP found themselves suddenly under budget. Since oil is mostly demand inelastic (with a bit of a right shift in the winter) there wasn't an increase in the purchase of oil to offset the drastic decrease in price. It was good for American consumers but at the cost of other nations economies. Should those economies diversify a bit? Sure, but the point is it's not as simple as merely raising or lowering the price and both benefit some while harming others.
ReplyDeleteSeasonal fuels: https://auto.howstuffworks.com/fuel-efficiency/fuel-consumption/summer-fuel.htm
Falling oil prices: https://www.weforum.org/agenda/2016/03/what-s-behind-the-drop-in-oil-prices/
I think you have a thoughtful point of view but 'gas companies' have basically no control over oil and gas prices. The state of Wisconsin passed a law in 1939 requiring gas stations to mark up their gas to a certain price to prevent business's from artificially selling items below cost, it is commonly refered to as the 'Minimum mark up law'. So even if they wanted to make gas cheaper they can't.
ReplyDeleteGas prices are largely determined through competition with OPEC production. The US is unique in that it can ramp up production of oil and gasoline which drives prices down and this is often used a political bargaining chip to influence OPEC. OPEC manipulates their levels of production to ensure that prices stay at a certain range. Since US oil production is largely independent, they have power to influence oil prices but not without repercussions. Therefore, I believe that fluctuating oil prices are advantageous because this will allow the US to compete with OPEC and keep the diplomatic advantages of being able to undercut oil prices.
ReplyDeleteIt would obviously be great for consumers if gas prices were lowered, but we can't just obtain this because we want it. The reason gas prices fluctuate so much is because of the amount of supply. We also see gas prices fluctuate because of the time of year/ season. Gas companies are in business to make money just like in every other industry. They obtain gas at a different rate due to inflation, supply, and many other factors. They can't just provide gas at a set price or they would lose out on money. Gas is not renewable and it is likely it will never have a set price per gallon. Just because I feel like Chick-Fil-A is too expensive doesn't necessarily mean they will decrease prices because other people still buy their product. Other than a few exceptions, consumers want gas prices to decrease, but this is not always possible.
ReplyDeleteI disagree with your opinion on how gas prices should be lowered. Although the citizens of this country hate the fact that gas prices can get so high there are many reasons to why it is this way. Simply regulating gas prices and keeping them low eliminates competition between companies such as BP, Exxon, and Mobil. Gas would be at an extreme shortage as well, with that being said we would more likely than not exhaust all fossil fuels contributing to gas in a short period of time leading to higher costs for new types of technology for driving. Overall everyone wishes things were cheaper but they have other problems that may come with it.
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