Monday, February 23, 2009

Price changes


Gas prices have been rising to extreme levels. But the question that always pops up when people see the board for price per gallion is why. The answer is oil refining. Cruel oil is actually quite cheap ( $35 a barrel) but the price for refining it is quite expensive. Refining oil is 50% of the actual price for gas, this is due to our relationship towards our biggest gas providers Iraq and Iran. I know I don't have to talk about our relationship with them.

Now since gas is rising so much why not just switch to diesel fuel? Well the trick to that is everyone is seeing this. Diesel has better milage than regular gas but because everyone is switching to it the price has also risen.

We need our cars but what can we do about the price that follows it?

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