My dad is a vice-president for an oil company and people think that when gas prices go up that means he gets a bonus or a raise. I want those people know that he doesn’t. Sometimes, he even gets a deduction because the company wants to keep the price of gas down. We also have to pay the same price everyone else does to fill up our cars; we don’t get our gas for free. Here are some real reasons why gas prices have been so high.
The reason that the gas prices were going up was because of the sellers raising the prices, and hurricane Ike. My dad’s company buys from Saudi Arabia, and OPEC like most companies. The oil business’s currency is American dollars, so when our exchange rate with the Euro and other currencies gets worse for us, these buyers want to keep selling the same amount they did before the dollar depreciated, so they charge us more to keep making a profit. If you don’t believe me check here, and read about what OPEC wants to do now, not the oil companies. Then there is hurricane Ike; while in Houston, he knocked out 14 out of 17 refineries, the place where they make the gas. They are currently working to keep up capacity. As of now 16 out of the 17 are up, and the gas prices are dropping.
So next time when you think that mean oil companies are jacking up the price because they want more money. They’re not, and just remember they are paying the same as you!
2 comments:
This sounds good, greek girl, but news reports last summer said Mobile and other companies were reporting record profits. Do you remember that? When consumer hear about record profits for the companies, they are bound to get mad. But I do understand what you are saying about OPEC--they control everything.
I really think they are reporting record profits because if you take 1% profit on a $4.00 gallon of gas you are making far than 1% on a $2.00 gallon of gas. Also, the demand for oil is still going up and higher volume almost always means higher profits.
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