Product Article Example | Topics and Well Written Essays - 750 words

Product - Article fashion modelIt is important to know why prices of oil colour products make a random up and down thrust in price line. Being a product of global petroleum market, its supply chain participants describe is complex. Although its supply is not short but assume of flatulence is likely to grow. To fulfill the demand side, its intersection and imports needs to be change magnitude if the public is to be served with a constant price line. Petroleum companies flaccid attitude in strengthening the supply line creates temporary shortage of gaseous state it affects the price. Market for petroleum goods reacts to the dynamics of supply/demand. Any supply imbalance created takes some time, so the price of throttle gets increased for some time only as soon as supply is replenished, balance in demand and supply pulls down the hike in price. Market mechanism works to provide the speedy and the intimately effective answer to the supply disturbances (National Petroleum Cou ncil, 2004).In the U.S. gasoline prices have seen wider fluctuations. People have fagged millions of dollars extra on gasoline during 2004 and 2005. Some areas have been affected sharply than others. In the spring of 2005, gasoline national weekly average prices at the gas stations after including taxes increased $2.28 per gallon. This hike in gasoline prices was steep but temporary and was felt throughout the U.S. It is also observed that sometimes gasoline prices in some particular areas are higher than abatement of the market. According to the Federal Trade missionary post Report (2005), since the mid nineties, the West Coast consumers, especially the Californians have paid more dollars for gasoline than rest of the U.S. states. Other than the dynamics of demand and supply, federal, state, and local regulations also affect the price of gasoline. Policy makers need to go bad to select the right strategies to counter the hike in gasoline prices.Price hike in gasoline is closely associated with antitrust issues, as analyzed by the