UK goverment, stabilization, oil prices, prices of fuel, demand of oil
Everyone in UK has had an experience of the shock for unexpected dramatic change in prices of fuel for instance fuel prices will unexpectedly sky-rocket overnight. Mostly it is the supply and demand case: there is a very high number of vehicles tapping oil and the supply is declining. Various factors have been causing these changes with the main being the changes in supply and demand of oil (Economics Online Ltd, 2015).
[...] There are various methods that the government can use in order to stabilize oil prices in the United Kingdom. Most of these bring about other problems and more especially encourage more production of oil which is in turn harmful to the environment as well as other effects that have been specified. Low prizes on oil have their own disadvantages too. Oil is an important commodity which is widely used by everyone in the United Kingdom and without it, it is true that there may be major difficulties to deal with. [...]
[...] Buffer stocks- the government may implement oil storage in order to stabilize oil prices especially when there are suppliers in supply. The stock may be supplied when there is a low supply in the market. The government can encourage production and use of substitutes- this will reduce the demand for oil hence fuel prices will be stabilized due to lack of supply. Maximum / minimum prices- the government may implement rice control on oil as a way to stabilize price fuels. [...]
[...] Its demand remains high despite changes in prices to very high marks. This may only be changed by technology and new sources of energy. As important as it is, its large production is harmful too. Reference Economics Online Ltd Price stabilisation. [Online] Available at: http://economicsonline.co.uk/Market_failures/Price_stabilisation.html [Accessed 2015]. [...]
[...] They also reduce oil drilling and provide renewable energy (Economics Online Ltd, 2015). Oil exports has brought about many benefits to UK citizens. Ban of oil exportation will deny citizens job opportunities. It will also boost the growth of the country's economy as well as being quite beneficial to the global oil market. Through increased taxes on importation of oil government income will be generated. It will also increase the local oil demand. This does not mean stable prizes. It might even reduce supply. [...]
[...] Institution Course Student Number City/State Date How prices of oil in UK have fluctuated? Fuel prices fluctuations in UK have been an occurrence that is common. This has been happening mostly on an upward change affecting mostly prices of diesel, petrol as well as other fuels. Oil prices in the United Kingdom consistently rose between the year 2002 and 2008. In the year 2006 petro price went through a £1-per-litre mark, as well as by early year 2008 petro prices rose to more than 1.30 per litre, however, they fell back in 2009 to 0.90 as a result of the global slowdown in the year. [...]
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