Who is responsible for the increase of oil price?
The responsibility of the high oil price lies with in theirs areas: the oil companies, the government, the Chinese economy, hurricane Katrina, and ordinary people
Firstly with the hurricane, as it is the act of Mother Nature there is not much to be said about its avoidance. But one thing is that more could have been done to prevent the damage from being on the scale that it resulted in.
Secondly with the oil companies they are partly responsible as they are producing less than before, for one reason they will say Katrina, but looking at it from a different point of view oil company such as OPEC from speculation has taking the action upon them self to keep low leaves of oil on the market prospect of sudden price rises if supplies are threatened which as a result they are making high profits.
Thirdly with the government they are responsible as they charges high taxes on the price of petrol which make it extremely hard for consumers to cope when prices start going up.
Lastly with ordinary people as we are now more dependent oil than ever before and to find out that our energy recourses are running out, we tend stock a significant amount that will last as for a long period of time. Which in this case mean petrol prices goes up due to panic buying.
What is the effect on the following?
- Owner of a transport company
- Me as an individual
- Local shops
- Oil Companies
- Car drivers
- The police
- The government
The increases of oil prices effect people in a step by step process; this is as each person’s effect causes difficulty for the other in order to operate.
Firstly with the owner of a transport company the effect high oil prices have on the them will be, their ruing cost will double, and in order to order over come this they will have increase fears which will enable the to break even.
Secondly with me individuals, effect of oil prices increasing will mean household bills such as gas and electricity bills will increase, this will mean will have less money to spend which will result in cutting back no shopping to compensate for the increase of bills.
Thirdly local shops, the effect of high oil prices will have upon them will be customers will buy less, meaning less money will becoming in, this effect can force the shop to cut prices on product in order to get rid of stock to break even or lay off some of their staff.
Fourthly: Oil Company who provides oil will be affect as every one will be on their case with criticism in order to lower pieces, as well as pressure protesting, which might distract their work and could result in oil prices increasing more slight.
Fifthly Car drivers: the effected will be their petrol prices will go up slightly or in some cases double, means they will spend more on travel which will result in less spending.
Your local garages: they will be affected by the increases on oil prices as there will be confusion due to every one rushing to fill up so they don’t run out of petrol, this will result in more customers wanting petrol which will make up long queues and might result in disagreement between customers, but looking at it from a different point of prospective the garage will be making more profit as they will be getting more customers.
The police are affected as a result of misunderstanding and protest against the increase in oil prices between customers, mean they are called to slot out the problems and restore order. This makes their job harder as more offices will be needed to work over time which the governments have to pick up the bills.
The effect increase in oil prices have on the government is more of an economical crisis as they have to find a way to satisfy every one affected buy the high oil prices with out making any one uncomfortable. This will result in cutting back on spending and to be realistic no sector will accept having to cut back. Also with the government as they charge more taxes on the price of petrol they will see their tax intake in that period may be double.