What's Up With Current Gas Prices ?
Sunday, November 9th, 2008The rise in gas prices is a topical issue that galvanizes public opinion. And of course any discussion of gas prices prompts the question - will the price ever come down to a price that is reasonable or that was charged a few years ago ?Small price reductions may occur, but will a return to reasonable prices from yesteryear ever occur - it seem unlikely. Given the potentially bleak outlook for the economy, a continued high gas could worsen the economy and make it tough on many people who are unlikely to see a pay raise in line with the ever-rising cost of everyday goods. Thus what lies ahead for gas prices and will it significantly change people's motoring habits if the price continues to rise.
Gas prices may go decrease in the immediate future. Fuel may actually decrease if the demand lessens considerably. People will travel less or car pool more effectively. Cars may become more efficient with new fuels appearing on the horizon. Therefore simple market forces like supply and demand will keep the price stable even though the long term trend will be inflationary.
However, one reason that gas prices will remain high is that oil refineries will continue to spend millions of dollars finding new ways to refine gasoline so that it burns more cleanly. This is so that it can comply with the stricter emissions standards enacted by various global warming summits of recent years. They also have to train personnel and to conduct research and development for future advances.