How the Rising Cost of Fuel Has Affected the Quality of Life
Petroleum well-known as fuel is very useful to our lives. According to Department of Energy, the world consumes nearly 85 million barrels of oil per day. It is completely shows that everybody needs fuel. We use them to fuel cars, airplanes, heater to our home, and to make products like medicines, plastics and materials. The first fuel prices crisis began in 1973, which there was a heavy transfer from the industrialized nations to the oil-exporting nations (Coleman & Cressey, 1990). While in 2004, fuel prices were starting to rise and everything correlated with people and goods has changed.
Many factors affect it, such as changes of unfinished oil prices, the transparency of oil markets and rules that affect prices of gasoline (FRES, 2004). In reality, the price of oil has raised would be because of strong contribution by OPEC country, which is Middle-east countries, like Iraq. Whereat, Iraq is one of the fourth highest countries that produce oil to the world. It directly changed the quality to people lives in all over the world. Because fuel is one of natural resources and very important to fulfill people needs. Its effect of gaining will spread in all sectors of countries natural environment.
The largest negative influenced part of the rising cost is economy sector. Several industries or companies could not compete without approaching qualified products, because they require lots of energy, raw materials and transportation fees which have strong relationship with fuel. Therefore, those companies planned to raise their product prices so they still can achieve more profits from it and raising the inflation rise. It will also affect the most to some developmental countries. For example, Indonesia as net country importer oil will have negative influences to many industries sectors (Indonesia: Data and Forecasts).
Briefly, the raising cost of fuel will eventually influences the economy activity, to the profit or the production of a company and inflation. At last it will affect financial market, exchange rate, country’s finance and the worst is increasing of unemployment. In addition, the raising of fuel means increasing tariff of air transportations, land transportations and water transportations. As reported in some news, British Airways, Lufthansa and Virgin Atlantic airplanes are planning to raise their fare tickets in response of the fuel prices.
In fact, transportations are one of the most effected aspects of fuel prices. Every company needs to transport their products to another place, so it will affect to raise the products prices because it cost more for them to delivered products to another place. On the contrary, the high prices of fuel could also stimulate companies to produce more oil. Moreover, when oil price rise, oil companies get even richer which mean they have more weight to trade in. Furthermore in public society, most of citizens have their own cars and fuel become their primary needs.
Many people decided to preserve their money on gas since the cost of fuel is increasing. They assumed that if gas prices get higher, they might avoid spending money on other goods and services. Even as some families have a routine, like going to some places on vacation they usually use their cars for long trips and it requires more gas. As a result of the fuel prices, they might prefer to stay at home than to spend money on an expensive fuel. Besides, the increasing of gas prices will affect the prices of their everyday stuff, such as groceries and home appliances.
In some way, it is changed people’s lifestyles. As the price of gas goes up, so does the price of a new home. Because, petroleum is the based product for building materials and house equipments, so anything dealing with petroleum is on the rise. Even though the price of gas may change, but they keep build their home. It is a basic need for human being, so they will not get distract of the prices (Mansalle, 2006). Another effect of the changing fuel prices is electricity. Since its raising, people make up their minds to use the electricity less than they usually consume.
Several researches reported that a small amount of people feel grateful of the increasing cost of gasoline. They prefer to walk than drive cars with expensive gas prices. Furthermore, it is healthier and avoids people to dependence on personal cars. The rising of fuel prices have forced some students, to change their driving habits. Especially for students who lives far away from their schools, colleges or universities. Meanwhile some students have turned to get on a bus in order to save their money on an expensive fuel.
Although the prices of public transportations are rising, but it will still be cheaper. Teenagers are also part of citizens who have affected on the fuel prices. It is going up outrageous and terrifying. They feel dissatisfied and disappointed because it will change their pocket money indirectly. In order to deal with the increasing of fuel, there are some suggestions that might be worthy for government to handle the situation. It is better if government invest in energy alternatives, such as pampetro cars, hybrid vehicles, petrofree cars and ethanol (Madslien, 2006).
Pampetro cars only use petroleum. Hybrid vehicle uses petroleum and other sources. While Petrofree cars do not use petroleum, it is 100% electric cars. Ethanol is a type of fuel made from corn hunks which relatively cheap and gives better efficiency. This way, would help keep our environment clean from pollution and help preserve our natural resources. This would also help to increase the production of corn. I think this is the perfect time for people to use public transportations. At the beginning, Government provides public transportations for citizens but people yet still using their own cars.
Using public transportations will also help government to generate revenue. Actually, there are some thoughts that might be useful for people to save their money on gas. First, try to drive slower than we usually are. Because drive faster than the speed limit will uses more gas. Second, keep cars in good shape and take good care of it. Last thought, find a car that has the best gas mileage when planning to buy one (Nwazota, 2004). Maybe those opinions will offer some improvements to change people’s bad habits. Indirectly, it will help us to save more money on gasoline.