The price of fuel is escalating possibly for 3 reasons.
• More demand
• Less supply
• Speculation
Ask yourselves which is playing the most important role. The price of a barrel of crude oil was US$ 33.00 in 2003. Today, it is US$ 130.00 and rising, a four fold increase in prices. Has the demand for oil, quadrupled?
It is speculation rather than more demand and less supply that is pushing the price of oil today.
Yes, it cannot be denied there is more demand. But, is there a four fold increase in demand in the last 5 years? Which country's Gross Domestic Product has increased by four folds in that time? China 's???
The supply of crude oil has been consistent. There has been new fields discovered everywhere. Perhaps, only the thought of less supply in the future is pushing the prices higher.
Speculation is the most important cause of spiraling fuel prices today. Don't listen to the oil barons who put it down to demand. It doesn't make sense. Reduce the demand in September and break this speculative chain. Reduce this demand by one third. See the fuel prices tumble down to more logical levels.