Causes, effects of the high cost of gasoline

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TOPIC: CAUSES AND EFFECTS OF HIGH COST OF GASOLINE
INTRODUCTION
Over the recent years, the cost gasoline has been going up and up and this has been happening not only in America or China but world over. The hiked gas prices are even been and are a burning issue which is talked about by many people trying to find a solution to the issue. To some extent it has even become blame game whereby the radical environmentalists would claim that the high cost of gas is as a result of corporate greed, poor planning and they also blame the government for insufficient or lack of intervention. In turn the corporate claim that the high cost is as a result of the greedy politicians, and the blame game goes on and on and yet there is no sign of a solution any time soon. But what exactly are the real causes of the high cost of the gasoline?
Causes of high cost of gasoline
Basically the major causes of high cost of gasoline are founded on the services of supply and demand. For instance, the amplified demand for oil in places like China, India and other countries including the developing countries has led to the high cost of gasoline. This means that the demand for gasoline is higher than the supply which in turn increases the prices as it`s meant to be according to the laws of demand and supply. However, apart from just the forces of demand and supply, there are other factors that have thrown in to the high cost of gasoline. Some of these include:
High gasoline taxes
Over time, high taxes have imposed on gasoline and on oil companies hence making the ultimate consumer both individuals and industries to bear the tax burden by paying extra penny on gasoline and other oil products. Though there are efforts to make the prices match with those of Europe, State and federal taxes has contributed to the rise of the price as well the Federal Reserve's monetary policy, which is weakening the U.S. dollar has played a rose in the price hike.
Too few refineries
Lack of enough refineries has contributed to the dilemma of prices. For instance, there is no oil refinery built in the US sinceb1976.The few refinery plants that have been existing cannot satisfactorily serve the growing population and also the industrial growth. It is true to say that oil demand is increasing as population is increasing but we still depends on the few refinery plants hence their supply in less and demanding hence the challenge of oil which results in high cost of gasoline.
Restrictive Environmental laws
These have highly contributed to the high costs of gasoline worldwide. For instance Alaska is floating on oil, but drilling is impeded by environmentalists, the new regulations put forward by environmental associations would chop fabrication of certain pollutants by up to 80 percent, counting reduction of sulfur production by 60 percent. As per the official EPA press release, this automatically enhances the prices of gasoli...