fuel price
Hi guys, my name is Betty. I am the lead of my group today. I am goanna talk about fuel prices.
The issue of fuel is very complex. First, what is fuel? It is material such as coal, gas, or oil that is burned to produce heat or power. And these 3 energies occupy the major parts of fuel use. In the past few years, fuel prices went up rapidly. Each country is very sensitive on the price.
What causes fuel prices to rise and fall?
For instance, let us have a look at oil. There are two main reasons - the cost of crude oil and the cost of refined petrol and diesel on the world market.
The market is influenced by a number of factors including global demand, supply, and political events and manufacturing capability. Crude oil makes up a significant portion of the cost of fuel. In the early years, it is easy to drill oil, so there was plenty of cheap oil. But today, the so called “easy oil” is over. It is harder to meet demand without complicated and expensive projects, such as deep-water oil. The fact that the cheap oil is mostly gone is the major reason why oil prices are higher than 10 years ago.
Affections on business trade:
The fuel price becomes high. There are two consequences:
One: export country gets lower profits
Two: import country face higher selling prices
Why?
1: high fuel price increase a lot on transportation cost. Energy cost is a major component of transport cost. You need to carry raw material to factory, then sent components to another factory to be assembled, and then carry production to ports, railway stations, then to your final destination via ship, truck, or plane. The cost to carry goods is a very direct affection on the price of goods.
2: business operation cannot be without electricity, it is used in various ways—electric lights, running computers, running elevators, operating manufacture facilities. If electricity costs rise because of gas prices, it will raise the cost of the product produced.
To remain the profit, export
The issue of fuel is very complex. First, what is fuel? It is material such as coal, gas, or oil that is burned to produce heat or power. And these 3 energies occupy the major parts of fuel use. In the past few years, fuel prices went up rapidly. Each country is very sensitive on the price.
What causes fuel prices to rise and fall?
For instance, let us have a look at oil. There are two main reasons - the cost of crude oil and the cost of refined petrol and diesel on the world market.
The market is influenced by a number of factors including global demand, supply, and political events and manufacturing capability. Crude oil makes up a significant portion of the cost of fuel. In the early years, it is easy to drill oil, so there was plenty of cheap oil. But today, the so called “easy oil” is over. It is harder to meet demand without complicated and expensive projects, such as deep-water oil. The fact that the cheap oil is mostly gone is the major reason why oil prices are higher than 10 years ago.
Affections on business trade:
The fuel price becomes high. There are two consequences:
One: export country gets lower profits
Two: import country face higher selling prices
Why?
1: high fuel price increase a lot on transportation cost. Energy cost is a major component of transport cost. You need to carry raw material to factory, then sent components to another factory to be assembled, and then carry production to ports, railway stations, then to your final destination via ship, truck, or plane. The cost to carry goods is a very direct affection on the price of goods.
2: business operation cannot be without electricity, it is used in various ways—electric lights, running computers, running elevators, operating manufacture facilities. If electricity costs rise because of gas prices, it will raise the cost of the product produced.
To remain the profit, export