The Effects of Gas Prices

Essay by EssaySwap ContributorUniversity, Master's February 2008

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Gas prices are about $1.99, $1.95, and even as low as $1.89 a gallon in and around the area. After seeing prices reach as high as $3 a gallon for regular unleaded gasoline, drivers are welcoming the new and much improved gas prices. The United States uses more oil than they can produce and must look towards foreign countries. An organization called O.P.E.C. controls approximately four fifths of the worlds oil reserves in the non-communist world. The United States is forced to deal with O.P.E.C., not only in its own interests, but also in the interest of its allies and in the interest of maintaining peace. Even before hurricane Katrina, record high gas prices were putting a strain on America's economy Oil prices briefly shot up past $70 a barrel in late August; oil prices finally settled at $58.71 a barrel this past Wednesday. Even though gas is $1.99 a gallon right now, it's still high, as opposed to the 99 cents a gallon used to be when I was younger.

I do not think that we will ever get to see those days again. I also think that even though the gas prices are increasing, people are driving more and more instead of cutting back on their driving habits. People are also buying bigger vehicles which use up more gas per mile driven.

With gasoline prices falling at a somewhat of a rapid rate, more and more Americans are going out and spending money on holiday gifts. Many retail stores stayed open on Thanksgiving, Kmart was one of the large retail stores that had its doors open all day. Many grocery stores like Brookshires and Super 1 Food stores stayed open until 2 p.m., and Alberston's Supermarket closed at 4 p.m. Staying open on this holiday brought many last...