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Fuel Wars

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Fuel Wars

Fuel Wars

A response to the increasing gas prices

Over the past two years, it has been said that gas prices would begin to rise in 1999. Immediately, this news grasped the attention of the business sector and public. Both spent their time devising a plan, on how to keep the prices low, but the time has come for these plans to begin working. The fuel prices have increased dramatically and the economy is now starting to feel the effect.

Around the world, the increase of the price of crude oil has hit the public harmfully. May Canadian's heat their homes with oil, especially on the west coast, and the cost of oil has increased 50% or more with a three-month range. In America, president Clinton has begun spending countless millions of dollars, to aid the families, which who cannot afford to pay for those absurd oil prices. This cause crises causes problems to the families that need every cent they earn to continue on their daily living. The standard of living, per household drops and consumer spending decreases, in order to save enough money to pay for oil. If this continues on, it will very well cause the economy to fall into a contraction period.

In Canada the cost of fuel has hit record highs of $.69 a liter to $.71 to liter. As you can see those prices are ridiculous and all Canadian citizens agree with me, especially those people that devote their life to being on the road, truckers. Truckers are outraged with the prices of diesel it has increased 100% and most of them can afford to pay those prices. Some truckers who work for large companies also sometimes pay for fuel if the total price exceeds the amount the company is willing to pay. Other independent truckers are contemplating whether or not they should call it quits because its just to costly for them to work, and most the time the money they make just goes towards paying for fuel. In Ontario furious truckers across the GTA basically turn the highways into virtual parking lots during rush hour time. According to many articles, Americans should be more thankful, and should complain less. The reason for this is that their gas prices are not as high as Canada's and most of the public has the money to pay for the high prices.

Inflation? Take inflation into account, the prices of gasoline is less now than thirty year ago. According to Charles Krauthammer on May 6, 1996 of the Washington post. Increases in gas prices aren't as simple as supply and demand. He ...

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