There is a strong depression in economy of the world. Gas prices are increasing by one dollar per gallon in this year. Last year the national average price per gallon of gas was 3.40 dollars. This price is going up day by day, for almost 12 months. At the end of April 28, 2008, the oil prices were 120 dollars per barrel and at the end of July 2008, the oil prices were 147 dollars per barrel. After increasing the oil prices, president of the Organization of Petroleum Exporting Countries suggests to change the prices of oil to 200 dollars per barrel.
Global recession
Different organizations are reporting according to their researches and plans like, AAA Fuel Gauge reports that the fuel prices will be increased up to 2.25 dollars per gallon, at the end of this year. Another organization EIA (Energy Information Administration) reports that the fuel prices will be increased up to 2.23dollars per gallon at the end of September.
Lowering of gas prices
After increase in gas and fuel prices, there is an expected lowering of fuel prices because people start using domestic gasoline inventors. When there is less demand, he prices will automatically decreases. According to Laurie Falter, an EIA analyst there is almost 2 percent decrease in usage of U.S gas. It is a common economics statement that low demand decreases the prices and high demand increases the prices of a specific product. Many auto companies are working for more fuel efficient cars. There are many fuel efficient Japanese cars in the market like solar cars and hydro power cars.
Blame the economy
A resident fuel-price analyst and director for public affairs at the AAA, Geoff Sundstrom reports in his summer repot that there is no big chance that the nationwide average price of self-serve regular is going to exceed 2.50 dollars this year. Less supply of gas results in increase in prices of gasoline. There are no more natural resources discovered yet. So there is a need to control the usage of fuel and start trying domestic gasoline production methods. Government should create awareness to the public for the use of gasoline to control the increase in prices.
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