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Fuel Price, Why You Always Rise?

Fuel Price

As we know that nowadays, the fuel price always keeps rising and of course this can affect our needs.  For people who have low income, it may sound stressing when fuel price keep rising while they have to fulfill other needs. For your information, there are several causes why the fuel price keeps rising from time to time.

  • The first one is International Oil supply, Saudi Arabia as the dominant producer of oil in the world setting production quotas upon the member of OPEC (The Organization of the Petroleum Exporting Countries). This lead the rising of the prices because they cannot fulfill the demand from other countries
  • The other cause is High international oil demand. The need of fuel everyday is keeping rising.  People should drive their car to go to work, many tourist are flying to their destination and of course this lead the high demand of the fuel. International Energy Agency says that global demand of oil around the world is at least 85 million barrels per day.
  • Oil becomes a financial asset. Many investors now moved to invest and taken contract to oil and gasoline product. This triggered the world currencies and soon it can affect fuel cost because of devalued currency.

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