Running on Empty : Auto Transport Blog for National Transport LLC

As gas prices continue to rise to almost $4 a gallon, more and more people are beginning to wonder if and when it will ever end. Some are even wondering what has happened to cause the prices to jump up in the past years. So, let’s start with the question, “What is causing gas prices to skyrocket?”

Rising Prices

According to National Public Radio (NPR), the biggest factor in the growing gas prices across the United States is due to the price of crude oil as well as the cost of refining it. For example, if you purchase gasoline for your car at $2.90 per gallon, approximately $1.60 of that is crude oil. The remaining 55 cents covers taxes and distribution costs/marketing. The cost of crude oil has been increasing over the past few years due to supply and demand. The countries that produce crude oil are experiencing supply problems due to refineries being shut down for maintenance as well as those refineries that are still recovering from weather-related incidents beyond their control.

In the end, however, the global market is what has the final say in setting crude-oil prices. Translation: the market decides what most people would be willing to pay for at the gas pump. This is what is causing the gas prices escalate. Normally, this wouldn’t be a big deal, but because other countries (like China) are growing, they require more fuel. Additionally, because there have been political problems between oil-producing nations and non oil-producing nations, this has caused a bit of a predicament when it comes to getting oil prices lowered.

Trends towards Change?

While many Americans claim that they are saving gasoline, the statistics show a totally different story. In fact, more Americans than ever are purchasing gasoline. Let’s face it- none of us want to end up paying $4 per gallon for a tank of gasoline, but if the price reached $4 per gallon, we’d probably still pay it. Now, there are other fuel alternatives that are in the works to help ween Americans off of their addiction to regular gasoline and these include:

• Ethanol- alcohol based, made from starch crops such as sugar cane, corn, barley and wheat. When you mix this with gasoline, it can fuel cars.
• Natural Gas- made up mostly of methane and hydrocarbons.
• Propane- liquefied petroleum gas.
• Hydrogen-still being experimented with
• Biodiesel-created from vegetable oils, animal fat or recycled restaurant greases. When you combine of these elements with petroleum, it fuels cars while giving off less pollution
• P-series fuel- still being experimented with
• Electricity

The Answer to Fuel Economy

Drive less, buy a smaller, more fuel efficient vehicle. Gas prices won’t be going down anytime soon, but at least we can be prepared. For more information on automobile transportation services, contact National Transport LLC with you questions.

Running on Empty : Auto Transport Blog for National Transport LLC

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