Last year, the price of gasoline was affected by COVID-19. This year, the price has gone up 15 cents in the last month. The demand for gasoline is rising and the price is also rising with it. The rise of gasoline has left many with opinions.
High gasoline prices occur due to the increase in crude oil prices. Oil producers also control the gasoline supply. Gas prices are determined by supply and demand, commodities traders and the value of the dollar. When demand is greater than supply, prices will grow. Commodities traders impact the price of gasoline by buying contracts from commodities futures markets and then selling them again to make an earning. Then the buyers make an agreed price, for the price of gasoline for which they will sell in the future.
Photo by Rodrigo Campos-Sánchez
The value of the dollar also plays another significant role in the price of gasoline. Gasoline prices will rise when the dollar loses a percentage of its value.
The current average price of gasoline today in Pennsylvania is $2.70. Last month, the average price of gasoline was $2.55. Last year it was $2.67.
“Gas prices initially began to rise 20 years ago. For the last 10 to 15 years, the prices have fluctuated,” Dr. Kareem Tannous, assistant business professor, said.
“Gas prices usually move up and down based on the price of a barrel of oil. Oil prices have risen over the past six months which have moved in coordination with gas prices. Gas prices are generally a drag on the economy, impacting consumer spending. Higher gas prices mean that we have less to spend on other goods and services. Higher gas prices always have an effect on the broader economy,” Dr. Erin McLaughlin, department chair and business professor, said.
“I do not have any reservations if gas prices rise or fall. We will all be impacted by the rise of gas prices. It will impact our ability to purchase other goods and services. Prices will rise since we are in the midst of a gas price swing. Supplemental and complementary goods will also rise,” Tannous, said.
“Gas prices going up is a bad sign. The more that gas goes up, the more other items go up also. Ultimately, it will cause a
huge domino effect,” Vincent Moffa, sophomore business major, said.
“I feel that the rise of gasoline is unfair for many people. I say this because many people are unemployed. This also affects many essential workers. The gasoline price should go back to normality because things at the moment are already hard for everyone. The price of gasoline should not be something that people who are living from paycheck to paycheck have to worry about,” Lauren Swint, junior education major, said.
“The negatives to rising gas prices include the inability to purchase additional goods and services. The positive of rising gas prices is that it challenges society to find alternative fuel sources,” Tannous, said.
“It is upsetting that people need to pay a huge amount of money to pay for gas. There are people who need gas to do a million things with their automobiles and etc. It is not fair that gas has risen to the price that it is now,” Armani Parker, sophomore graphic design major and Black studies minor, said.
