Gasoline and other petroleum products: a political commodity essay

Coincidentally, I recently visited Indianapolis and had noticed a large billboard advertising ethanol free gasoline. There are about ten million flex fuel cars on the road designed to burn E Why is ethanol-free gasoline so much more popular than E85? I poked around in comment fields to come up with a short list of reasons, some rational, some not so much.

Gasoline and other petroleum products: a political commodity essay

Get Full Essay Get access to this section to get all help you need with your essay and educational issues. Gasoline and Other Petroleum Products: Likewise, due to the fact that the production of gasoline and other petroleum products as well as the technology involved in its manufacture are not readily available to other countries, such good can actually cause jitters in any economy.

Thus, it can be said that the rise in the price of the above-mentioned commodity can be extremely felt by underdeveloped countries but not so much in countries with strong economies like that of the United States US.

Objectives of the Paper For the purpose of this paper, it is the aim of the author to discuss how the rise in the price of gasoline and other petroleum products extremely affects underdeveloped countries as well as present why strong economies like that of the United States US are not so much affected by this.

Demand and Supply Conditions of Gasoline and Other Petroleum Products The price of gasoline and other petroleum products of even nature are actually dictated by the world market. The said price of oil in the world market becomes the basis of various business entities, involved in the retail and distribution of such commodity, for their selling prices in their respective markets.

On the other hand, the price of gasoline and other petroleum products in the world market is influenced by the demand and supply conditions of such that persists in the said global or international market.

OPEC is comprised of eleven 11 member countries whose economies heavily rely on the profits earned from oil export activities.

Gasoline and other petroleum products: a political commodity essay

Its establishment is primarily for the purpose of ensuring the achievement of stable oil prices, which are reasonable and just for consumers and producers www.

Some of its members would include countries like Saudi Arabia, Nigeria, Gabon, and other countries that have the capability and the technology to produce gasoline and other petroleum products. This is so because a rise in the price of the said commodity disturbs the domestic price environment.

It actually translates to an increase in the price of other goods and services available in the economy. Such price hikes in the said commodity, considering its inelastic demand, can be very painful not only to the government but also to the ordinary consumers especially those who are low wage earners.

Gasoline and other petroleum products: a political commodity essay

Such price hikes further limits their already limited day-to-day budget. Taking this into consideration in a wider perspective, it can be said that oil price adjustments can also drive up the demand for dollars.

This is true for third world and or underdeveloped countries like the Philippines. An increase in the price of oil in the world market actually signals an increase in the demand for dollars, which is actually the scarcest resource of third world countries, as such is being used to pay for oil imports.

Such pressure eventually translates to an increase in the prices of goods inflation ratefunds interest ratesand labor wage rate.

Gasoline and Other Petroleum Products: A Political Commodity Essay Sample

Therefore, as a result the disturbances in the domestic price environment, uncertainties are created thus contributing to the slow growth of production activities and depriving some people of a simple and convenient way of living.

On the other hand, for most developed countries, an increase in the price of oil does not greatly affect their economy like that of the third world countries. This is so primarily because they actually have the access the scarcest resource of third world countries, dollars.

Likewise, an oil price hike in the world market is also considered good for this is beneficial for them. It actually enables to acquire higher margins of profit.

This is true for those developed countries that are members of the OPEC as well as those countries that participate in the speculative market for gasoline and other petroleum products of even nature. Business Week, 22 April The effect of the crude oil prices on the economy are dependent on the ability of the economy to substitute the product with other products, including alternative fuel prices.

However, the substitution for oil remains considerably poor, and hence, the suppliers of oil hold a near absolute monopoly of the fuel . Gasoline and Other Petroleum Products: A Political Commodity Essay Sample. Significance of Gasoline and Other Petroleum Products. Gasoline and other petroleum products of even nature are indispensable to any country’s economy.

Prices Of Petroleum Products In Nigeria Economics Essay Prices Of Petroleum Products In Nigeria Economics Essay Crude oil was first uncovered in commercial quantities in Nigeria in , while real production were only available in political or rent-seeking selfish passions.

Obviously, it is the same rent-seekers that continuously. Due to the expectations that is related to OPEC supply cuts, political tensions in Venezuela and strict stocks increased international crude oil and good prices in March , market conditions are more volatile than usual, United States were trying to increase crude oil prices.

REAL WORLD ORDER WHO RULES THE WORLD? "NOT ALL CONSPIRACIES ARE THEORIES" There is a plan for the world - a New World Order - devised by a British/American/European financial elite of immense wealth and . If Marathon improves the throughput rate of crude oil delivery they will be able to refine more barrels of gasoline and other petroleum products a day.

As previously stated the pipeline can transport up to one million barrels of crude oil a day, and according to vetconnexx.com their refinery network has a crude oil throughput capacity of.

Gasoline and Other Petroleum Products: A Political Commodity | Essay Example