...Petrol engine general gasoline spray into the air inlet pipe with air mixed be combustible mixture into the cylinder, spark plug combusts expansion work. People usually call it spark ignition engines. And is generally through the fuel injection pump and diesel engine fuel injection nozzle, direct injection diesel engine cylinder and the cylinder Canon of compressed air mixing, spontaneous combustion under high temperature and high pressure, forces the pistons to work. The engine is often called compression ignition engine. Petrol engine cars with high speed (cars use gasoline engine speed can be as high as 5000-5000 r/min, trucks with gasoline engine up to about 4000 RPM) light quality, working with low noise, easy starting, manufacture and maintenance cost low characteristic, therefore, in the car and, minivans and is widely used on military off-road vehicles. The deficiency is the fuel consumption is higher, and poor fuel economy. Diesel cars with high compression ratio, average about 30% less than Petrol engine car fuel consumption, so the better fuel economy. Such as the recently listed faw Volkswagen production TDI1.7 diesel cars than 1.6 litres of petrol cars 2 liter per hundred kilometers can save. General freight most used diesel engine. Diesel engine's weakness is speed was lower than those of gasoline engines (generally the highest speed in 2500-3000 revolutions per minute), quality, manufacturing and maintenance of the high cost of (because of the high fuel injection pump...
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...Abstract The rising gasoline and oil prices have become a global concern since petroleum has many uses around the world and yet its prices have continued rising for the last sixty years. This paper sought to find out why gas prices are higher in California than in other parts of America. The literature reviewed showed that West gasoline market dominated by California is defined by tight balance between supply and demand. Other factors found to be contributing the escalating gas price in California include isolation of the state from other refining centers, market conditions including international demand, Wall Street speculation, poor policies leading to uncontrolled oil cartels, decline of oil production during technical failure, political interferences, and increasing prices of crude oil due to demand forces. Despite there being no quick solution to the challenge, temporary measures such as efficient use of the available resource while looking for alternative cheaper source of energy could alleviate the challenge. Why Gas Prices are Higher in California than in Other Parts of US The Rising gasoline and oil prices have today become a world concern (Garrington, 2012). More concerns are raised considering that petroleum is an important product whose price continues escalating for the last sixty years (Murray, 2012). Currently, the highest percentage of gasoline cost (75-80%) in most parts of the world is determined by petroleum cost (Murray, 2012). In...
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...……………………………………………………………………………….. | 9 | References …………………………………………………………………………………………….. | 11 | Introduction Overview Cousin Edgar needs to understand/decide if he should invest in buying two gas stations. He must consider the high costs of pursuing this idea on business and to try to recover his costs quickly. If the cost of gasoline is taken as a measuring rod then he needs to understand if he can earn enough to recover the costs of investing. Starting a gas station business can be one of the best decisions Cousin Edgar can make as an entrepreneur. He can either set up new gas stations or buy gas stations for sale. If he decides to buy one then he must have some knowledge about how to buy a gas station and if he is planning to set up new gas stations on his own then he is going to need to do some serious research as to how he can go from start to launch. He needs to consider doing lots of research and checking out numerous gas stations for sale before starting up. One of the first steps is to choose a location and find a property. It is important to find a location with the necessary driver demand for fuel and convenience store items is probably the most vital step. Gas station requires a high start-up costs and operating costs, with a high volume of sales, or it will...
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...Descriptive Statistics Gasoline Prices University of Phoenix RES 341 August 21, 2006 Descriptive Statistics Gasoline Price Gasoline is the main product refined from crude oil, it accounts for about 17% of the energy consumed in the United States. The primary use for gasoline is in automobiles and light trucks. Gasoline also fuels boats, recreational vehicles, and various farms and other equipment. While gasoline is produced year-round, extra volumes are made in time for the summer driving season. Gasoline is delivered from oil refineries mainly through pipelines to a massive distribution chain and from there to service station across the country. (Department of Energy, 2006). While the price of gasoline continues to rise, one of the questions on the minds of the consumer pertains to the components that determine the price per gallon of gasoline. Included in the cost per gallon is the cost of crude oil to refiners, refinery processing costs, marketing and distribution costs, and finally the retail station costs and taxes (See figure 1). The prices paid by consumers at the pump reflect these costs as well as the profits (and sometimes losses) of refiners, marketers, distributors, and retail station owners (Department of Energy, 2006). Figure 1 [pic] The Gasoline price issue has always occupied an important part in any discussion and in any plan of government. As we stated in our first group assignment, gasoline is the bloodline that keeps...
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...Response to Price Changes Page 4 Equilibrium Prices under low price elasticity Page 5 What Causes Gas Prices to Increase Page 6 Opportunity Cost Page 7 Conclusion Page 7 Introduction Prices are set by demand and supply. When supply falls, prices rise quickly. The demand for oil continues to hit a record high. Countries like China and India are consuming it more frequently as they industrialize, but cars and power factories. However, the supply of gasoline has been restricted by certain requirements forcing oil refiners to manufacture different gasoline for an assortment of purposes. The price of gasoline reflects producers’ costs and consumer’s willingness to pay. Gasoline prices tend to rise if the cost to produce and supply such commodity rises, or if people decide to buy less gas at the current price (when supply is greater than demand). The price of gasoline will stop rising or falling when a price is reached at which quantity demanded is equal to quantity supplied by producers, otherwise known as equilibrium. Consumer Response to changes in the price of gas 3 The rising price of gas will affect consumer spending rather than significantly impacting the amount of gasoline being purchased. The major aspect of the consumer life affected by the spike in gasoline prices is the change made to their expenditures across a range of industries such as clothing, food, electronics and purchasing smaller vehicles that is more economical...
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...Business Economics GM545 Chapter 3 - Everyone’s Gasoline Problem. Based on US Energy Information Administration data, annual supplied of US gasoline increases rapidly. In 2008, the United States consumed about 137.80 billion gallons (or 3.28 billion barrels) of gasoline. 1 Currently the retail gasoline prices about $2.83 per gallon after it went up to above $3.00 per gallon then dropped down. Mainly is the increasing price of crude oil where price varies within the year from $40 to $86 per barrel. Depend upon the circumstance, barrel oil could change rapidly; gasoline production and inventory are the two factors could make big impact on the price variation. Basically, there is huge demand on consuming of gasoline in US which source of supplies mainly from the Organization of the Petroleum Exporting Countries (OPEC) which has continued to produce oil to satisfy US consumers. In 1996, gasoline increased from $2.00 to $3.38 due to the Iraq-Iran’s war broke out. When Iraq and Iran’s war occurred, their capacity of producing oil were limited and reduced significantly, therefore a change in the supply determinant had triggered up the oil price of US and worldwide, as consequence, its results the supply curve shifted, increasing the price dramatically. On the demand side, U.S. is heavily depended on foreign oils. As a result, U.S. gasoline prices changed and varied accordingly to the turmoil of the world’ situation. When US consumers increase number of buyers, this...
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...market prices its gas too high without regard to competitors’ pricing, consumers will take their business to the competitor with lower prices. If the retailer loses enough business due to higher pricing, they will lower the prices to be more competitive in order to retain customers. Retailer competition affects gas pricing which can be seen by price differences on stretches of highway with multiple gas retailers. More choices generally mean more competition for the retailers. Even though many retailers carry the gasoline of major oil companies, they are independent dealers of the product and can set prices as they wish. The cost of foreign trade is contributes to the rising cost; however, many other factors contribute to the pricing of gasoline which drastically affects buyers and sellers in the marketplace. According to the Chevron Corporation, like agricultural products, such as wheat and corn, and precious metals, such as silver and gold, crude oil is traded on the world market. Recently, crude oil prices have risen dramatically, driven by rising global demand and political instability in several oil producing countries (“The Price of Fuel…”). Since crude oil is the primary raw material used in producing gasoline and other petroleum products, it is essential in price determination of gasoline. The price of crude oil may account for up to half the price of a gallon of gasoline. After crude oil is processed through a refinery and turned into gasoline, it is transported to...
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...Use the concepts of price elasticity of demand and elasticity of supply to explore and explain the large fluctuations in the retail price of gasoline over the last 3 years. Use price elasticity concepts to explore the accompanying closure of many gasoline retailers. Also, discuss the impact of cross-elasticity of demand. According to various literatures petroleum is the single largest source of energy used in the United States. It is said that the USA uses two times more petroleum than either coal or natural gas and four times more than nuclear power or renewable energy sources. However, before petroleum can be used it is sent to a refinery where it is physically, thermally, and chemically separated into fractions and then converted into finished products such as the gasoline that is purchases at the pumps. Fluctuations in the average gasoline prices has been caused for concerns, this paper will attempt to look at this through the economic concepts of price elasticity of demand and supply to explain the fluctuation in gasoline retail prices in the USA over the past three years. Price elasticity of demand measures the degree to which unit sales of a product or service are affected by change in price. The demand for a product is said to be in-elastic if a change in price has little effect on the number of units sold. On the other hand demand is said to be elastic if a small change in price has a substantial effect on the number of unit sold. The price elasticity of...
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............................................................................................... 7 OTHER ALTERNATIVE FUELS ..................................................................................................................... 11 CONCLUSIONS ............................................................................................................................................ 12 REFERENCES ............................................................................................................................................... 13 LIST OF FIGURES Figure 1: Historical inflation adjusted oil price per barrel, (Brent equivalent in 2011$), based on amounts shown in BP’s 2012 Statistical Review of World Energy (taken from High-Priced Fuel Syndrome 2012) ....................................................................................................................... 4 Supply and Demand Curve before the 1973 oil...
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...petroleum based product is gasoline. We use gasoline everyday in our vehicles. We count on gasoline to get us to our important destinations, because most of these destinations would be time-consuming and exhausting to reach on foot alone. Petroleum is pretty much vital in many of today’s industries. 40% of America’s energy consumption is oil and 30 billion barrels of oil are used every single year. In 2005, the United States of America consumed 21,930,000 barrels of oil in a single day. The production, distribution, refinement and retailing of petroleum make the petroleum industry the largest profit making industry in the world. In America we pay a gasoline tax for the gasoline we buy. This gasoline tax is collected by the Federal Highway Trust fund and is used to pay for road maintenance and other transportation projects or needs here in our country. Therefore, gasoline tax can be described as a “user’s fee”. You drive on the roads, which increases wear and tear on the roads, so you pay the tax on your gasoline in order to maintain the roads. There has been a tax on gasoline since 1919. The initial tax rate was only 1 cent on the gallon, but today, more then 50 years later, we pay around 18-19 cents of federal tax on every gallon of gasoline we purchase. State gasoline tax is a different thing altogether. The average state tax for gasoline is about 28-29 cents on the gallon. So all together we pay about 48 cents of tax per gallon of gasoline purchased here in the United...
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...Industry DISCUSSION QUESTIONS: 1. What are product-cost subsidizations? When excessive costs are charged to high-volume products while insufficient costs are charged to low-volume products. One example of how this occurs is when product-costing is based on labor-hours. Products that are produced infrequently will typically require less annual man-hours when compared to major products. Calculating the costs of several products based on a traditional volume-based costing system ignores other costs that are not related to volume. These costs may be engineering, set-up time, material costs, or other variables. 2. What are possible consequences of product-cost subsidizations? When prices are based on cost, product-cost subsidization can lead to increased demand for undercosted and underpriced low-volume products, which are probably being sold at unprofitable prices. Conversely, companies experience reduced customer demand for overcosted, overpriced high-volume products and services. State and federal laws have been enacted against predatory pricing, which is the selling of products below cost as a deliberate action to drive out the competition. Alternatively, products may appear to be priced below cost because of the use of unrealistic, unit-based traditional costing systems, which results in the appearance of predatory pricing where it does not exist. 3. List alternative approaches to assign costs in a gasoline service center. Unit-based approach - focuses on...
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...condition where gas prices are at sky high, especially in places where public transportation is scarce. On average, the whole United States have faced an increased in gas prices nearly 5 cents from March 21st, 2014 to April 4th, 2014 (Reuters, 2014). According to Reuters, Lundberg survey has shown that this increase in gas prices was caused by an increase in demand. In fact, the United States has been experiencing gas prices increasing since early February this year after gas prices saw a price fall in late 2013 (Reuters, 2014). Despite of the fact that gas prices and demand for gas is high, it makes sense for cousin Edgar to spend his money on purchasing gas stations because the facts suggest that he could gain a lot of profits by operating gas stations. However, there are other various factors that cousin Edgar must take into consideration before spending his money, such as the gas demand and supply, the price elasticity of both, the cost of gas production, as well as the future challenges that awaits him in the future. One thing that Edgar must know about what can affects demand is the availability of substitute product, which in this case the substitute product for gas would be the use of public transportation. In places where there is a good public transportation system like in San Francisco, the demand for gas could be more elastic compared to Los Angeles, because consumers have other alternatives of commuting. Currently, gasoline has an inelastic price elasticity of demand...
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...the venture. This analysis will look at the past, present and potential future demand for gasoline, the availability of sufficient gasoline supply, as well as a recommendation about the desirability of undertaking the venture. Crude oil prices have fluctuated over the past several years, but have steadily risen which translates into a rise of gasoline at the pump. This has made it appear appealing to venture into this business. On the other hand, people are very tired of high fuel prices and how rising fuel prices seem to drive up the price of consumer goods, utilities and touch almost anything consumers would have a desire for. According to an article published on the Forbes website in 2012 [1], the worst is not over. The last two years has proven this not to be true. Although there have been a number of spikes in gas prices, the prices in 2014 have been reported to be the lowest since 2010. This could lead to lower profits for a variety of reason that this paper will examine. Opening up or purchasing one or more gas stations represents a substantial outlay of cash, or obtaining large loans, or a combination of the two. The investment in the gas stations is based upon the premise that the gas stations will produce enough revenue to pay debts, as well as provide enough income to pay off loans or provide a return on the initial investment. On-going maintenance and other costs would have to be considered before a purchase decision is made. DEMAND DETERMINANTS ...
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...Gasoline Impact During the recent economic crisis everything costs for food, housing, clothing and fuel has gone up. The high price increase for products has hurt the economy tremendously. The high rate of unemployment has contributed to the actual economy crisis. One would certainly think that there would be some relief at the gas pump. Gasoline prices are at breaking record levels. Many residents have a hard time affording the cost for fuel. Today people are finding themselves choosing different ways of transportation. Many people are hoping to see gasoline prices drop significantly which would provide a much needed relief to their budgets. The demand for gasoline has remained the same, as people continue to have a need for it. People need to drive their automobiles everywhere they go. This has not changed the demand for gasoline. The market for gasoline has also gone up. Wherever gasoline is cheaper, people will flock to buy it. The equilibrium for gas prices is not balanced. The price for gasoline varies from neighborhood to neighborhood, city to city etc. Some prices being lower, and some being higher, but overall still remains higher than previous years. The supply of gasoline in the United States is available, but the government chooses to purchase fuel from other countries. This in turn leads to higher gasoline prices. The United States decided that they would not drill off shore because of the last big oil spill. The oil spill cost the United States more problems...
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...Federal Trade Commission DEBORAH PLATT MAJORAS ORSON SWINDLE THOMAS B. LEARY PAMELA JONES HARBOUR JON LEIBOWITZ Maryanne Kane Charles H. Schneider Susan A. Creighton Lydia B. Parnes Luke Froeb William Blumenthal Anna H. Davis Nancy Ness Judy Maureen K. Ohlhausen Donald S. Clark Chairman Commissioner Commissioner Commissioner Commissioner Chief of Staff Executive Director Director, Bureau of Competition Director, Bureau of Consumer Protection Director, Bureau of Economics General Counsel Director, Office of Congressional Relations Director, Office of Public Affairs Director, Office of Policy Planning Secretary of the Commission Report Drafters and Contributors Louis Silvia, Assistant Director, Bureau of Economics David Meyer, Bureau of Economics Sarah M. Mathias, Office of General Counsel Policy Studies Michael S. Wroblewski, Assistant General Counsel Policy Studies Phillip L. Broyles, Assistant Director, Bureau of Competition J. Elizabeth Callison, Bureau of Economics Jeffrey Fischer , Bureau of Economics Nicolas J. Franczyk, Bureau of Competition Daniel E. Gaynor, Bureau of Economics Geary A. Gessler, Bureau of Economics James F. Mongoven, Bureau of Competition John H. Seesel, Associate General Counsel for Energy Christopher T. Taylor, Bureau of Economics Michael G. Vita, Assistant Director, Bureau of Economics Anthony G. Alcorn, Bureau of Economics Sarah Croake, Bureau of Competition Madeleine McChesney, Bureau of Economics Guru Raj, Bureau of Competition Natalie Shonka...
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