Price of oil rises 30 percent in 2010; gasoline prices could hit $4 a gallon in 2011.
In New York, the price of gasoline rises 34% in May of 2010, because of that it will push $4 a gallon by summer in some parts of the country. The U.S. in the largest oil consumer, this means that shipping and ordering a pizza will now be costly. Because of the oil price hike, the product price in the market will also be affected. While Oil Company continues to fatten their profits, other business organizations are finding a hard time to increase their profit. Further oil price burst came in late November as it became clear that Congress was likely to extend for two more years tax cuts set to expire at the end of the year.
What is happening now in U.S. affects its citizens and other countries as well. Exportation of products will also be affected because it will cost goods to be delivered from one place to another. The same case in the Philippines, sometimes prices of oil increases because we are affected when Oil companies decided to increase. Thus, we also suffer the same case with New York and other U.S. countries. Prices of goods in the wet-market also increase. Thus, our food consumption will be affected. Some people use alternatives for expensive foods when they cannot afford to have one. In addition, transportation fare would be mostly affected as to jeep and taxi drivers also demand to increase the fare. But the people’s income still remains stagnant. In conclusion, when oil price rises, everything will be affected.
