How Gas Prices Work
Summary:
This article states that Canadian gas prices are either lower or unchanged since September. On September 22nd, the average Canadian gas price was 94.9 cents per litre, which was 3.6 cents lower than the previous week. All the surveyed gas markets reported that their prices either dropped or didn’t change at all. Although Vancouver had an above average gas price of $1.007 per litre, Vancouver still saw the biggest drop in price of 8.1 cents lower than last week. Yellowknife on the other hand has the highest gas price in Canada of an unchanged price of $1.197 cents a litre. Kingston, Ontario on the other hand had the lowest gas price in Canada with 85.4cents, decreasing by 4.7cents since the previous week. Even the US price of crude oil went from $99.37 to $66.50. Overall, signs show that gas prices have been dropping all over North America.
Connections:
With the constant drop in gas price, traveling is a lot cheaper than before. This may help businesses improve profits by lowering the amount on the freight in or freight out accounts. Businesses don’t have to suffer excessive transportation charge for shipping goods out or in. With this decrease in expense, businesses can purchase supplies without having to worry about the extra freight in/out expense. This would also reduce the expenses of some businesses that require the use of gas such as taxis and buses. This would definitely help increase revenue earned in businesses, therefore will also be a factor that helps businesses survive the economic struggle we are facing right now.
Reflection:
I believe that gas prices dropping is a good and bad thing. Many people will be able to afford gasoline and start driving everywhere which is very convenient. Businesses would benefit from this because more people will be able to afford gasoline now and therefore there would be more costumers for them. Businesses would also benefit from the decrease in freight in/out expense and therefore make more profit. However, there would be more people driving and emitting carbon dioxide into the environment now that gasoline is more affordable. With the cheap gas prices, people would be more willing to drive and therefore emit more pollution into the atmosphere. I think that this would contribute to the recovery of the economy. Therefore I believe that this is more to the good side rather than bad.
http://www.canada.com/prices+fall+across+Canada/2047433/story.html
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ReplyDeleteI agree that the drop in gas prices has its positive and negative sides. Gas prices can benefit businesses and consumers in domestic traveling costs. However, the drop of 8.1 cents in gasoline prices will not immediately cause a significant change in people’s daily agenda. In fact, not all citizens will go travelling now, even though the cost is cheaper. The reason is due to the recession and high unemployment rates. When each household’s amount of money is tight, people tend to be conscious in their expenses, so they are unwilling to spend it on a luxury, such as traveling. Instead, I believe people are more likely to save the extra coins from lower gas prices for other unexpected costs or for the rainy days ahead.
ReplyDelete~Jasmine Lee