Gas Prices & Blame
April 28, 2011 by staff
The Bureau of Labor Statistics reports that gas prices rose 28 percent in the year to March 2011, compared with an increase in inflation of only 2.7 percent. Around the corner and can be 4 per gallon gas, that is, a painful and 64 filling 16-gallon tank.
It is difficult to disaggregate the price of gas to find out what is happening. From the point of departure in foreign oil fields and proceed to the local pump, the fuel passes through many hands it is difficult to identify the point of extortion of clients.
The latest price increase followed by the start of the riots in Libya in mid-February. But that was a game that is running in the U.S. consumer. Libyan oil is less than 2 percent of world production and has not been completely severed. If the loss of Libyan oil were to cause a 2 percent increase in prices, which implies an increase of 6 cents per gallon and the starting point of 3.25 per gallon-a, for example, and 3.31 a gallon.
Another aspect of the Middle East based in Saudi Arabia. Although its leaders have a normal appetite for money, which, in the United States urges, have seen the convenience of stable prices and have raised or lowered their production, within or outside the Organization of Petroleum Exporting Countries to try to keep oil prices steady. This is not philanthropy by the Saudis. Importing almost everything they eat and realize that high oil prices mean higher prices for virtually everything else, including them.
But the Saudis are exasperated with the United States. They are President Barack Obama was too quick to encourage the protesters in Cairo’s Tahrir Square, which precipitated the fall of President Hosni Mubarak. He was a Sunni leader of the country, which is his greatest friend in the region. They undoubtedly reasoned that if the U.S. could go from being a close friend of Egyptian regime to an opponent in an instant, what form of betrayal could be reserved for the Saudi leadership when things got tough for the kingdom?
However, taking into account relevant developments in the Middle East, it is likely that the big oil companies are the basis of the race for the U.S. consumer is taken at the pump. Oil company earnings are still enormous, like the oil company executives packages of compensation. Craven U.S. politicians – in the White House and Congress – do not show the taste that is to impose a tax on excess profits or business income or higher taxes on the wealthy nation.
Instead, they seem willing to tolerate the seaweed and debris that gasoline prices high cause in the lives of people, like everything, but wages appear to increase the cost of fuel. With the summer season, not far, it is difficult to know how American consumers are much more willing to take.
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