Gas prices expected to peak in May 2007
The government predicted that there will be increase in the price of gasoline in May 2007. In May gas prices should peak about $2.87 and gas prices are predicted to be higher in the summer. Gasoline prices are continuing to rise no matter what people seem to think. Are gasoline prices rising because there is more demand or gasoline prices rising because of the decrease in the oil industry.
3 comments:
The gas prices are becoming absolutely ridiculous! How can Americans continue to afford these prices? I think ethanol should be put into our gas to make it less expensive. Or, we need to find a better gas resource- Alaska for example. I feel there's better ways around this inflation of prices and this problem needs to be solved.
Regardless of the cause, gasoline will most likely remain an inelastic good; people will continue to purchase gas (and probably large quantities of it over the summer unless the airline industry decreases prices) despite rising prices. For many people there are few if any substitutes for gasoline, especially for people in more rural areas whose sole transportation is their own car, as opposed to forms of public transportation found in the city. Our supply of oil isn't dry yet and there will continue to be fluctuations in gas prices.
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