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The Impact of Ethics in Rising Gas Prices Introduction In this paper, I will be discussing the effects of ethics and how it plays a very important fact in today’s gas prices. I will be explaining the impacts on the financial decision making, and financial management objectives. This paper will show how gas prices have increased over the last few years. Why Gas Prices Are Rising Today gas prices are on the rise. Most Americans are wondering why. The gasoline inventories fell for the fourth consecutive week and were 6% lower than two years ago, and partly are because of the imports and refinery maintenance, according to the Energy Department.
Several reasons affecting supply. The refinery turnaround season is when refineries shut down or scale back to do necessary maintenance which is done in early spring and late fall. This time period provides a combination of moderate weather and off peak gasoline demand. The results of all this is that it lowers the available supply of gasoline as the driving season begins to pick up. With the lower supply + higher demand = higher prices. The demand of gasoline was very high in the winter. This can cause problems in the years to come. The United States depends on gasoline imports to supply the demand that is needed.
When the price goes up the exporter can make higher profits. “There is little relief in sight as we head into the summer driving season that traditionally begins Memorial Day weekend. The U. S. Energy Information Administration predicts that gasoline prices would average “$3. 60 per gallon in May and June” and also notes that, “should crude oil prices not decline from current levels of over $110 per barrel retail gasoline prices could end up peaking even higher. ” Oil closed near $119 per barrel on April 25 (Davis May 1, 2008, p. 29). ” The charts below show how the gasoline prices have increased since the year of 2001.
A Fuel Price “Relief bate” “Middle- and lower-income families need immediate help to cope with record fuel prices. We can help these families by providing a “fuel price relief bate” check of up to $450, which will cover some or all the higher fuel price costs faced by working families due to the increase in gas prices over the last seven years. The fuel price relief bate would be applied progressively to families who need it the most. The amount households in each income group would receive in offsets is calculated using the average annual fuel expenditure increase between 2001 and an estimate for 2008 (see methodology for more details).
The fuel price relief bate would reimburse 100 percent of the higher cost of gasoline since 2001 or $450 for families earning less than $10,000 per year ( Davis May 1, 2008, p. 29). ” Conclusion Gasoline prices are directly affected by what the price of crude oil, and the supply and demand taxes and world events. When hurricanes are in season, gas prices seem to climb. All of these factors make a very important point. It is expensive to drive an automobile, and expensive to keep buying gasoline.