Case Study on Petrol Prices

Petrol Prices Case Study:

Petrol is one of the most expensive resources nowadays and it is natural that its price will increase gradually all the time. The price on petrol depends on numerous interconnected factors. First of all, the price depends on the price on crude oil and its production. It is quite expensive to explore the basins of oil, drill wells to extract it and to support the wells in the appropriate working condition.

Obviously, if there was no crude oil, the petrol prices would be extremely high. Fuel is sold everywhere and its price on the international market is more or less the same all over the world, but there are local and national peculiarities of pricing which depend on the additional factors. For example, it is sometimes expensive to transport petrol to the far areas and the petrol supply is limited there, so the prices will be quite high there.

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The price for the production of fuel also depends on the technologies, appliances used for this process, etc. Then, the price depends on the local demand – if the demand is high, the petrol becomes more expensive there because of the businessmen who trade fuel with the aim to make much money. Next, if the country does not possess its own oil wells and plants which produce fuel – the price will depend on the trader and the strength of the local currency. Moreover, the prices depend on taxation, as there are countries which set high taxes for petrol traders (for example, Europe and Japan) making the rice higher automatically, while such countries as Saudi Arabia reduce taxation making prices lower.

Petrol prices is a very important problem in the world, because the humanity consumes fuel all the time. For example, the USA is the biggest consumer of petrol in the world and its prices can be quite important for the country and its every citizen. The student can observe the problem on petrol prices in detail analyzing the cause and effect of high and low prices; the factors which influence the quality, the supply and prices on petrol in different parts of the world. The student’s duty is to solve the existing problem professionally suggesting possible ways out which would regulate the petrol prices in the world making them more or less fair and equal in all areas.

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Custom Case Study on Petrol Prices

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