COST OF FUEL

By: Geri Vallee, Chris Rynkowski, Christian Vial, Nick Stansbury

Why Gas Prices Hurt…

Introduction

“Don’t Buy Gas Day” Proposal Organized date: May 15th 2011 Research and Media provided by the

Gas Relievers Team Acknowledging gas prices across our

country and how world issues affect cost.

Canadian Gas Prices

Key Points

Record high gas prices Economic suffering No control for consumers Global impact

World Gas Prices

Purpose

Plan a “Don’t Buy Gas Day” to revolt gas prices.

Advertise using Social Media outlets Increase support by enabling others to take

affirmative action

Understanding

Necessity of Fuel Gas is a global commodity, required by a

substantial amount of people Necessary to maintain efficiency in everyday life For many people, living without fuel is not an

option, so high gas prices are putting a costly strain on a lot of citizens

Need to establish realistic ways to curb the price of gasoline

Regardless of how insignificant an individuals effort my seem, a collaborative approach could very well be viable

Cause and Effect So many different factors that can raise prices From start of cycle to the end, any alterations of

the process can affect the cost of fuel Big picture: the pain doesn’t end when your

done filling up your car Heightened cost of fuel means more expensive

shipping of products, expensive to fly, prohibitive with driving longer distances

This means higher gas prices can affect virtually any product in the economy involved in this process

Where does my money go? Crude oil is what gasoline is typically

composed of The price of oil a barrel may have the

largest impact on the cost of fuel, but not the only

1 barrel of oil = 42 gallons = 159 L = which roughly yields 75 L of gas

The following pie graph gives a better look at where each dollar we spend on gasoline goes.

Breakdown of Price

67%

15%

11%

7%

Cost in cents

Crude Oil(67 cents)

Taxes(15 cents)

Distribution+ Marketing(11 cents)

Refining(7 cents)

Natural Disasters In many instances, natural disasters can have a

substantial effect on the cost of fuel If the supply becomes disrupted, short term

demand for the commodity has the potential to surpass supply and create an upward pressure

In the case of powerful hurricanes, such as Katrina for example, many people saw an increase at the pump

The shifting imbalance between supply and demand , especially when supply is affected but demand remains high

Fuel as a Limited Resource Prices tend to increase when the world crude-

oil marker tightens and lowers inventories Higher demand can sometimes outpace the

refinery capacity Obviously fuel is a limited resource and this

tends to have a significant impact on the fluctuating price

Looking into other, renewable sources of energy might be a viable means to combat the price of gasoline

OPEC and Global Pricing Organization of the Petroleum Exporting Countries Consists of 13 countries, which hold grasp of 40

percent of worlds oil production, and oil reserves When OPEC wants to raise the price of crude

oil, it simply reduces production Causes prices to jump because of shortened supply When oil production declines, gas prices increase The price of gas is too volatile, and it is influenced

by so many factors, which makes it a challenge in terms of finding solutions

Gas Prices in Canada

What can we do as individuals?

Although the term strength in numbers needs to be considered, individual actions can have a large impact

Individual steps to reduce wasting unnecessary gas can help prevent costs and in term have an effect on the global commodity

Steps to avoid wasting gas Avoid unnecessary driving Minimize amount of time spend in idle Utilizing a steady and moderate

acceleration Stay close to speed limits Coast and glide whenever possible Properly inflated tires Replace the cars dirty air filter Remove unnecessary items and bulk

Imposing a national “Don’t Buy Gas Day” will help showcase the outrage consumers have for the escalating price of gasoline.

“Don’t Buy Gas Day” acts as a mass awareness event to the major fossil fuel producers such as Exxon, BP and Shell.

Results

Though not likely to change the actual price of gasoline itself, this day will still be successful through spreading the discontent and frustration the common person has for these prices.

The billions of potential dollars the oil companies will lose is just an added bonus.

Prices are only going to rise across Canada and

measures must be taken now in order to stand up and

display the publics displeasure with the forced

increase of gasoline.

Conclusion

Remember to not buy gas on May 15th and join the fight for lower gas prices.

This is the first step in fighting the oil giants and it can only be won if we come together as ordinary people who are outraged by the price of a needed commodity in today’s society.

Only then will we make a difference and create a better way of living for everyone.