Low Gasoline Prices- A Great Relief For All People

| Total Words: 576

A lot of people are wondering why gasoline prices today have reached at an all time low when just a few months before, the price for gasoline was really the most expensive since the Iran-Iraq war. Well, its not that people are complaining about it but people are really curious as to why this happened. Why the sudden rise in price and the sudden decrease in price?

As most people know, the price of gasoline and other petroleum products depends on the price of oil. If oil is expensive, then gasoline will also be expensive. Now, the price of oil depends largely on the law of supply and demand. If there is a surplus of oil in the reserves and limited demand for it, then the price of oil will be cheap which also means cheap gasoline and other oil products.

Today, there are quite a lot of supply of oil in the reserves and limited demand. This basically explains why gasoline has reached an all time low when it comes to the price. Now, why is it that gasoline is at a very low demand when winter is already coming? This is the time of the year where oil demand is usually very high as people use it in order to heat their homes.

There are quite a lot of reasons why...

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