Gas And Oil Prices

Gas and Oil Prices 1

The Rising Costs of Gas and Oil Prices.

Gas and Oil Prices 2

The Rising Costs of Gas and Oil Prices.

Even though not only have gas and oil prices changed but they have made everything else

go up in price. The cost of living and the way that people are living is effected by these rising

costs. In this paper I will discuss the different ways that these prices are affecting everyday life.

The way that everyone has changed things in there life would be transportation and business

costs.

Gas Prices have changed a lot over the years and it seems to be increasing in cost and

that it is not going to change. According to Foreman (2008), in 1981 the cost per gallon was $1.35

and now the cost is between $2.84 to $3.23 . Some of the reasons that the cost of gas is going

up is because of the rising cost of oil. Gas prices are affecting people in there everyday lives with

driving, living expenses, and with the cost of their living. Families are having to set a budget for

there fuel and are having to not drive as much.

Oil Prices are at there highest points and the repercussion of this is the cost of gas and

the cost of living. The cost per barrel is going up, at that point the cost of fuel goes up as well as

everyday costs. The cost per barrel is “$91.77 to $ 100.09 ( Oil prices rise back above $91 a

barrel, 2008)” , this year alone and only seems to be getting worse. The war has helped to make

the cost of oil go up, because we are at war with Iraq and that is where we get our oil. There is a

shortness of oil and with this the cost of oil will go up, so will the cost of living, and the cost of fuel.

Across the United States individuals are feeling the high prices of gas and oil prices. These

prices are starting to hurt our economy because people are not being able to travel as much as

they used to be able to. Families are feeling the hurt when they do travel because when people

go to go camping with there children it costs more in food then they had in there budget and

same with fuel. When families go to travel and go by plane, the cost of riding on a plane has gone

up so when a family does decide to travel that way they have to save money to be able to take

Gas and Oil Prices 3

their entire family.

Business costs are changing and people are feeling the effects of the gas and oil price

increase. Businesses are having to charge extra because of the cost of fuel, they are having to

tack on a fuel charge onto the final bill to there clients. In this case the cost of merchandise is

going up to try to and help out with the cost of fuel. The cost increase makes it hard for those who

do not have the extra money in there budget, so if their car is broken then they would not be able

to fix it if it cost to much. These costs are causing places like Wal- Mart to charge more on their

merchandise and their food products.

Small businesses are having the most problems with the rising costs of gas and oil.

Reasons for this, is that the business is small and has to be able to have employees and being

able to pay them for their work, that is hard for small businesses. The business owners are

having to increase their costs to their clients and with that causes problems with the clients that

do not have much money. The cost of merchandise goes up and with that the business owner

has to raise the cost to the client and with this the owner makes little if anything off of the

merchandise. So when the cost of fuel goes up it truly hurts these small businesses and the cost

of everyday bills go up and hurt these businesses.

The increasing cost of fuel is making people think of other ways of transportation. There

are many ways for people to save money, some of theses ways are to ride the bus, car pooling,

walking and riding a bike. Taking the bus only costs around $15 dollars a month “( Pass and

schedule information, 2008)” and people are able to ride on it as many times as they need to in a

month.