• The price of oil and gasoline skyrocketed in 2007 and the first half of 2008. Analysts ascribed the sharp rise to a confluence of factors. Investors have been buying high-priced oil futures, and are currently being investigated for possibly manipulating oil prices. India and China have a much higher demand for gas, but world oil production has not increased to match the demand. The declining dollar has also been pegged as a cause.
    1. Americans consume 20 million barrels of oil a day
    2. Taxes: 12% of U.S. gas price
    3. United Kingdom: Taxes over 50% of gas price
    4. Most expensive gas: $9.69/gallon (as of May 31, 2008), Norway
  • Consequences

    SUV and truck sales have declined significantly over the past year; Ford has announced that they will reduce vehicle output by 12%. The increased cost of gasoline increases the cost of transport, which increases the prices of goods being delivered.

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