Write a 9 pages paper on (economics major) the factors that influences our current gasoline price. ( crude oil, tax, etc..).

Write a 9 pages paper on (economics major) the factors that influences our current gasoline price. ( crude oil, tax, etc..). To further explain, the following component and circumstance are explained on how they affect the price of petrol. Factors That Influences our Current Gasoline Price 1. Crude Oil Of all the factors that influenced the cost of gasoline, the cost of crude oil is the single most significant factor that influences our current gasoline price. It accounts up to 55 % of the total gasoline price. The cost of crude changes over time and varies among different regions of the country and the world. Crude oil cost, just like any commodity in the market is also determined by the law of supply and demand. As the law states, when supply cannot keep up with the demand, the price will naturally go up. This is also the case of crude oil where demand is perpetual while supply can be precarious due to a lot of factors. The price of gasoline is influenced by both the demand and the supply side. On the demand side, it is us consumers who determines it according to our consumption of energy and also generally the world’s economic growth or downturn. This happens when there is an economic growth where demand for energy increases and that means that the requirement for fuel will also naturally increases and that will translate for higher prices in crude.