Why Are Gas Prices So High and What You Can Do About It By Lewis Hopewell At Isnare.com Ezine Articles

Why are gas prices so high these days? Indeed, this question has been asked again and again by consumers these days as crude oil prices crossed the $120 per barrel mark early this year. This has resulted in putting a tremendous financial strain on the pockets of middle class families who commute on a daily basis by car. Given the current global outlook, the easing of gas prices does not seem a likely possibility in the short run. For those who are clueless as to why gas prices are so high, we offer you an explanation to the current situation, as well as possible measures you can adopt to combat rising gas prices.

To explain why gas prices are so high today, it is important to understand the relevant demand and supply factors in play. The fact is, today’s high oil prices is a result of the world’s demand for oil outstripping current oil supply levels.

In terms of supply, it is often the best interest for major oil producing countries such as the ones that make up OPEC to limit the supply of oil. This would enable these countries to maximize profits as they would be able to sell the limited supply of oil to consumers at a higher price given the high levels of demand. Moreover, countries such as the United States which possess large undiscovered plots of oilfields have been slow at opening these up for production purposes. This has resulted in an acute shortage of oil supplies.

Coupled with a shortage of supply is an ever increasing global demand for oil which has resulted in today’s high gas prices. Industrial and economic growth in developed countries has often been associated with demands for oil and gas, as fuel to meet production needs. The United States is the number one consumer of oil and gas supplies in the world today. However, the rapid growth of developing countries such as India and China has resulted in an ever increasing demand of oil and gas as these countries seek to meet the fuel needs of their respective industrialization programs. Such a situation has only served to further increase oil and gas prices.

Given the current levels of oil and gas prices today, various measures may be adopted by consumers to reduce their spending on oil and gas.

One such measure would be to minimize the use of the car. Should you live near your work place, you might want to consider other alternatives of commuting to work such as walking or riding a bicycle to your workplace. Not only would you save spending on gas, you would also be able to get some exercise as well. That’s killing two birds with one stone!

Alternatively you might wish to consider carpooling should you really require the car. You could form a carpooling network with your neighbors. One of you can drive a car with good fuel economy, taking the rest with him to their respective destinations and splitting the cost of fuel and maintenance each month.

Stop spending unnecessarily on gas. While there is little we can do to affect current gas prices, there is much we can do to cut down on our spending on gas. Take the first step today.

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