Preview

Gas Gouging

Satisfactory Essays
Open Document
Open Document
328 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Gas Gouging
Laquania Williams
ENG 1123 Online-Campbell
September 07, 2006
Argument Essay
Gas Gouging
With Gasoline prices at a record high, consumers are yelling gas gouging. Customers are very upset at gasoline station owners as they continue to increase gas prices. Those who need gas the most, not being able to voice their views, will suffer the most from increased prices.
Everyday when we drive down the highway, we see changes in advertised prices. One gas station may advertise gasoline at $2.69 per gallon and the consumer goes three miles down the road where another gas station advertises gas at $2.35 per gallon. Consumers will then make an extra effort to travel to the gas station with the cheaper price.
If gas providers know they can make profits simply by increasing gas prices, why would they question the petroleum industry? The government should place price controls on gas. Low income families may not be able to afford high gasoline prices, which could lead to them not being able to make it to work and lose their jobs.
The government should give compensation to consumers who suffer at the cost of rising gas prices. Tax cuts should be given at the end of the year and these cuts should be made permanent.
Gas gouging isn't about management accuracy. It is about how consumers feel. It is clear prices at the pumps are rising at a fast pace. Gas gougers need to be punished. People have better things to do than to hunt for gas stations who offer reasonable gas prices. It is not fair to try to justify the increase in gas prices by pointing the finger at the cost of oil. If the supply and demand can not be leveled out, more efficient ways need to be developed to make up for the limited supply. If the majority of the people feel gas gouging has gone too far, then it is time for a

You May Also Find These Documents Helpful

  • Good Essays

    ECON 545 Project 1

    • 730 Words
    • 3 Pages

    Points of distribution also effect gas prices, areas with multiple distribution points compete for business thereby constantly trying to drop or match the gas price by mere pennies on the dollar(2). In large cities such as my hometown Chicago, prices are higher due to Illinois tax rate causing some Illinois residents to travel to a neighboring cities/state with lower taxes and better gas prices such as Hammond, IN. Chicago area average gas price is currently $4.09 per gallon while its neighboring city Hammond, IN is paying $3.62 per gallon. The current USA average price per gallon is $3.58. (3)…

    • 730 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Course Project - Part 1

    • 637 Words
    • 3 Pages

    Below is the supply and demand curve that we review when observing gasoline prices going up in the field. Basically under normal conditions we see the equilibrium price being where supply intersects demand at EQ and EP. However, as we experience issues where manufacturers end up not supplying as much fuel as before we see supply shift to the left and this is seen in the supply graph S2. We also see equilibrium price move up because of this from EP to EP1. An example of such an incident occurred during the Katrina Hurricane back in August 2005. The hurricane damaged the 30 oil platforms and the closure of nine refineries. This reduction of oil production reduced the amount of supply of gasoline for the nation. Thus rising the price of gas nationwide.…

    • 637 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    I am going to have to guess and estimate how many gallons of gas where sold a day in Merrillville, Indiana, and for the price per gallon, I used the high and low price per gallon for September 2014 from GasBuddy (the chart is located in the addendum). Let’s say the Average quantity sold a day for the month of June: Average quantity = 12,000 + 18,000/2 = 15,000. Now the Average price in Gary, Indiana for September 2014: Average price = $3.49 + $3.59/2 = $3.54. Now calculate the percentage change in quality demanded and percentage change in price for demand curve D1: Percentage change in quantity demanded = (18,000 – 12,000/ 15,000)*100 = 40%, Percentage change in price = ($3.49 - $3.59/$3.54)*100 = -2.82%. Then divide the percentage change in quantity demanded and percentage change in price to calculate price elasticity of demand curve D1: Price elasticity of demand = 40%/-2.82% = -14.18. So elasticity is greater than 1 in absolute value, D1 is elastic between those two prices. We now have to calculate the price of elasticity of demand curve D2. I will again have to guess and estimate how many gallons of gas where sold a day, and for the price per gallon, use again the prices from GasBuddy. Percentage change in quantity demanded = (15,000 – 12,000/ 13,500)*100 = 22%, Percentage change in price = ($3.49 - $3.59/$3.54)*100 = -2.82%. Now we can calculate the price elasticity…

    • 3391 Words
    • 14 Pages
    Powerful Essays
  • Better Essays

    The most significant factor in the production of gas is crude oil. The prices in gas fall and rise due to the cost of crude which is established by supply and demand on the global commodities market. During the recession in 2008 and 2009, the gas prices went down because of less demand. However, as the economy progresses, the demand is rising. In the meantime with conflict in the Middle East and North Africa, the supply is at risk. With both the rising demand and the risk of reduced supply, gas prices are increasing. Crude oil comprises of more than 65 % of what Americans pay at the pump. In addition, gas prices are impacted by costs of refining, distribution, government and marketing taxes (API, 2013). This information is especially important to those who…

    • 1197 Words
    • 5 Pages
    Better Essays
  • Good Essays

    competitive analysis

    • 510 Words
    • 2 Pages

    Gas prices have reached record highs in many states. Would you advocate a price control for oil so that you pay less than the market price at the pump? Why or why not? (Be sure to include your own research to support your answer. You can also review the 1973 oil…

    • 510 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Hurricane Katrina is the deadliest and most destructive Atlantic tropical cyclone of the 2005 Atlantic hurricane season. Katrina destroyed imports of crude oil and caused a number of refineries in its path to shut down temporarily. It prompted denunciation by politicians of greedy refiners and gasoline dealers, and proposals for federal legislation prohibiting "unconscionably excessive" gasoline price increases. Many states have an anti-gouging law set in place during disasters. But yet just a year before all of this occurred the price of gas was around nearly a dollar eighty. Now gas is almost a dollar and fifty cents more. That is why gasoline price gougers should be punished. It is already the law and it causes the economy to become more unstable.…

    • 449 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Chervon Case Study

    • 194 Words
    • 1 Page

    Gas is a need for transportation. If you had to choose among Chervon gas vs all brands of gas combined. Chervon, would be an elastic demand and choosing that brand would be a preference. If their price increased, consumers are aware of several other brands available to purchase.…

    • 194 Words
    • 1 Page
    Satisfactory Essays
  • Better Essays

    In the beginning of the summer, when most people drive to vacation spots throughout the United States, gas prices reached record highs. In June 2000, the national average was $1.68 per gallon and in some larger cities; the prices soared to $2.00 and more per gallon (Facts.com, 2005). Americans were furious not only because consumers were paying more at the pumps, but because rising fuel costs have triggered inflation. Americans realized that if inflation began to rise, a recession could be triggered as had occurred in the 1970's and 1980's (Facts.com, 2005).…

    • 1005 Words
    • 4 Pages
    Better Essays
  • Better Essays

    Rhetorical Analysis

    • 1261 Words
    • 6 Pages

    The Price of Gas is Outrageous – And It is Going To Get Even Higher…

    • 1261 Words
    • 6 Pages
    Better Essays
  • Good Essays

    clearly define that Natural Gas Companies are in the wrong and that the general public could…

    • 618 Words
    • 1 Page
    Good Essays
  • Good Essays

    econ 545

    • 1206 Words
    • 5 Pages

    As we all know that the price of gasoline is definitely driven by the concept of supply and demand. Never the less prices fall, quantity demand will rise, when price rises, quantity demanded will fall. Usually this is a true statement in most cases. But gasoline is a necessity to most Americans. The demand for fuel does not decrease when the price increase. Consumers often influence the price of gasoline. Gas prices in the late spring and summer months are the highest during the entire year.…

    • 1206 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    ANOTHER REASON THAT GAS PRICES SHOULD BE LOWER IS BECAUSE IT AFFECTS THE MIDDLE-CLASS PEOPLE THE MOST, AND MIDDLE CLASS PEOPLE ARE THE MAJORITY OF PEOPLE LIVING IN THIS COUNTRY TODAY. THE PEOPLE THAT ARE CONSIDERED TO BE IN THE MIDDLE CLASS LIVE COMFORTABLY WITHIN THEIR INCOME WHEN THE ECONOMY IS STAYING THE SAME, BUT WHEN GAS PRICES RISE THEY ARE NO LONGER ABLE TO AFFORD THEIR NORMAL EVERY DAY EXPENSES. MIDDLECLASS PEOPLE ALSO SUFFER SEVERELY BECAUSE THEIR INCOME WAS COMFORTABLY SUFFICIENT AND NOW IT DOESN’T COVER THEIR MEANS. MIDDLE CLASS PEOPLE WILL ALSO HAVE TO SACRIFICE EXPENSES JUST TO PAY FOR GAS. THE PEOPLE THAT ARE CONSIDERED TO BE IN THE UPPER CLASS ARE NOT AS AFFECTED BECAUSE THEIR DISPOSABLE INCOME IS ABLE TO COVER ALL THEIR EXPENSES EASILY.…

    • 540 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Every consumer is looking to his or her wallet and bank accounts and wondering where all of their hard-earned money is going. The answer is plain and simple – Gas! Gas prices have slowly begun to hurt families financially; including my own. Families are taking drastic measures to make ends meet to ensure their automobile is topped-off each week. For the past several years, the Nation's economy has seen a steady incline in gasoline prices. This essay will examine the factors that play a significant role contributing to the increasing prices.…

    • 753 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Tax On Gasoline

    • 501 Words
    • 3 Pages

    Should the Federal Tax on gasoline increase to help pay for public transportation and road improvements?…

    • 501 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    U.S. Booming Oil Industry

    • 1974 Words
    • 8 Pages

    The U.S. runs a market system style economy also known as capitalism. This means individuals and businesses make their own economic decisions and set out to achieve their goals. In this case the U.S. oil companies price the oil they produce based off the nation’s aggregate demand. The United States’ and especially the foreign nations’ aggregate demand is respectively high at this time and oil companies are taking advantage of their market system economy in which they belong to. However this country is not a pure capitalistic country meaning government has little say with the market pricing of oil. It seems like the oil companies tend to keep prices just high enough; to maximize their profits while not overly creating a negative impact on America’s economy. The U.S. government has limited ability to influence the oil companies pricing and works to keep gas prices bearable for most businesses and individuals.…

    • 1974 Words
    • 8 Pages
    Powerful Essays