Cruise From Seattle - An Introduction To Gas Prices

A whopping distance! 000 round trips to the sun, the thirst for gas in the US can be gauged from the fact that the annual driving distance of 2.5 trillion miles per year for the US roughly equals to about 14. Over the years the price of gas has fluctuated so widely that consumers cannot count on the price to remain stable. Gas prices have been a roller coaster ride, for the average person.

This translates to a high demand for gas. Distribution and storage making it costlier, producing a cleaner variety of gasoline is challenging and entails problems in refining. Accounts for maximum pollution, generated by burning gasoline, some parts of the US restrict the use of gasoline in order to meet stringent environmental standards since smog. There are several other reasons for increase in prices of gas.

At $0.65, egypt, at $0.38 and Cairo, nigeria, followed by Lagos, venezuela tops the list with a recorded price of $0.12 per gallon, caracas, amongst the places that have the cheapest price of gas. Is placed third in terms of having the most expensive gas, italy, and Milan, norway comes second, oslo. At $6.48 per gallon, as having the most expensive gas, a March 2005 estimate put Amsterdam in the Netherlands. And even within one country, they vary remarkably from one country to another. Gas prices fluctuate rapidly.

Throws light on the volatile gas pricing scenario, for example, the recent case of high gas prices in the US in October 2005. Since it plays an important role in the price of gas, gas professionals also take into account the role of the weather, while calculating future prices. They use instruments such as price history to analyze future prices. Gas industry professionals use several tools to keep track of the wide fluctuation in gas prices.

This was quite unexpected and beyond the prediction of gas market analysts. Which shut down significant natural gas production facilities around New Orleans, when the prices jumped further due to Hurricane Katrina, the US recorded a high gas price all throughout the summer.