- What are pricing trends in the industry?
In the midst of an upcoming presidential election, both Democrats and Republicans, to appeal to the millions of citizens within the U.S., oftentimes switch focus. But even with the variety of focuses, there’s always emphasis on a key aspect within our society: oil, also known as gas.
The average price of a gallon of gasoline is $3.74, but continuously rising, especially since warmer weather is approaching. With prices nearing $5 a gallon, President Obama expressed, in a very…candid way, why lowering prices is within his interest: “ Just from a political perspective, do you think the president of the United States going into re-election wants gas prices to go up higher?” Knowing the difficulty in lowering gas prices, essentially oil prices, President Obama added, “ there’s no silver bullet.”
However optimistic the president may be, his Republican counterparts don’t agree. Republican James Sensebrenner, says the blame should be on Secretary of Energy Steven Chu, saying, “ The price of gas has gone up by 100% on your watch, and this is unacceptable.” In response, the President placed the blame on the “possible speculations in the oil markets.”
Regardless, the price in oil is rising, thus driving the expenses in our daily lives. It may sound self-centered, but with the rise in oil everyone is affected.
To be specific, the companies within the transportation industry may be the most affected. With oil prices rising, the most obvious decision, to not lose profit, may seem to raise prices, but that’s not the case. As oil prices rise, the original competition is still going to prevalent, therefore restricting companies from increasing prices in order to stay competitive.
Despite geographical, express, or unusual circumstances, the pricing trends within the transportation industry are ultimately in the hands of policies and lawmakers.
Article: http://online.wsj.com/article/SB10001424052970204276304577265753848794554.html?KEYWORDS=gas+prices
aren't they really within the hands of OPEC? Also, remember you are transportation, so make sure your post focuses there.
ReplyDeleteit is despicable when politicians blame the other side for higher gases prices. Politics at its worst.
ReplyDeleteGas prices need to go down. I remember when gas prices were around 2.95 and everyone was complaining. But now-a-days, I would do a lot of things to get the prices there again
ReplyDelete