How come fuel prices have come down so rapidly? Has demand really decreased that much?
What factors are influential in bringing down fuel prices. I am in the western U. S. and at my local gas station 87 octane went from $4. 50/gallon in June 08 to $1. 99 in Dec 08. Can anyone break it down and explain or refer me to an article? thanks.
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#2 written by ironrhino 1 year ago
Well, I heard that the higher prices go, the more they fall. Picture this, companies are in business to make money, and the cheaper they can make stuff, the better for them because their profits are greater. I still think automakers make cars cheaply and they break easily, rather than making something to last. This makes me lose faith in mankind, somewhat. Demand has dropped, I’m sure, the economies around the world are terrible, people are buying less gas and driving around less. I also think the oil barons actually cranked up prices to make a lot of money and now it has dropped a lot because people cut back and they’ll probably make more money with lower prices because more people overall will use fuel, rather than just those with more money to spend. For example, if a toy sold for $1,000 then only maybe 100 people would buy it bringing in $100,000, but if it is sold for $500 then 250 people might buy the item, bringing in $125,000. Business is somewhat evil, in my opinion. Like cigarettes; some number cruncher probably figured out the exact amount of nicotine and chemiclas to put in them, so people will get enough ‘pleasure’ from them to hold them over for a while, but then they’ll crave another cigarette sooner and get hooked more, so they’ll buy more so the cigarette companies make more money. Rather than helping out people, many businesses are just in business to make money and they don’t care what happens to their customers. Years ago, companies were proud of their products and would run out to fix / service them, but these days, you buy an item and it breaks or has a problem, you’ve got to spend your time on the phone, dealing with the company and often, you end up having to spend more money on something that should have not ‘broke’ in the first place. They do anything to get your business, which translates into get your money, but then some number cruncher figured they would make x amount off first time buyers, but 2nd time buyers don’t add up to much, so they make it harder for you to get help with the product they sold you, hoping you go away because it is more worth their time to sell to a new customer than to existing customers. Such crap. Like cell phones, ever have a problem with your service and try to call the phone company to get it straightened out? Sometimes you get lucky, sometimes you get a person on the phone that has insecurity issues so they treat you like crap and you end up calling back, trying to get someone else and end up wasting hours of your time in hopes of using the item you purchased, the way it is meant to be used and without any problems. Let us not overlook the fact they also farm out their customer service to foreign countries where they pay the people a tiny fraction of what they might pay their country’s people, therefore you run into language barriers / miscommunication and they do this to make their profit margin even bigger. Often, people give up and the company knows it, so they make their customer service a real pain in the butt to deal with.
Big business and governments don’t want aliens to visit because people will be freed and stop spending a lot of money on crap sold here on Earth and those people with all the money and power will not be in control anymore.
I realized after, this is not exactly an answer to your question, exactly, it is my opinion, but it makes sense to me. Really though, if everyone in the world took 1, just ONE day off and did not buy or use a single gallon of gas, for their cars, the oil market would get a serious kick in the pants.. I’d say that the failing economies and people conserving more, is reason for it. They’re trying to keep selling the fuel because that is how they make money.
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People all over the world stopped driving and started using collective transportation causing the prices to go down, but i do believe that the government is involved in this because i have never seen the price of something to decrease that fast.