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Raising fuel prices, good or bad?
Jun 23, 2008 03:59
  • YVONNE
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On June 19th, Chinese government made a declaration that it would raise the petrol and diesel prices by 17 to 18 percent. The purpose is to help those oil refiners ease some burden. In the past, those refiners have had to pay world prices to buy crude oil but couldn't sell refined oil according to the market rates. This has made them suffer great losses. Now they must feel happy because the prices have been raised.

However, it might be bad news for those consumers. Raising fuel prices means that they have to pay more to buy petrol and diesel.

What do you think? Is it good or bad to raise the fuel prices?

Photo: Queuing for fueling.

Jun 23, 2008 11:16
#1  
  • GRIZ326
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Higher prices lessen demand...at least in theory.

Fuel prices had to hit 4 USD a gallon before Americans became more prudent with the use of a car to drive down the road a few hundred feet. People are actually walking again; I thought that we had forgotten that we have feet.

Jun 23, 2008 19:16
#2  
  • WCTMAN
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Do you own a car? If not, how do you feel about some of your tax money being used to subsidize the cost of driving for those who do? By keeping the price of gas below world market levels, this is exactly what the govt. was doing. So, the next time you are standing in a hot, crowded bus, look out the window at the guy driving the nice air conditioned BMW and be proud that the govt., with your money, was ( and still is, just a bit less so ) making it just a little bit easier for that person to drive around town.
Jun 23, 2008 20:56
#3  
  • JCNILE123
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n a perfect Stalinist state, everybody rides the bus, and everybody is... happy?
Jun 23, 2008 21:50
#4  
  • JIMMYB
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Chinese government has done too much to stablize the oil prices. Before announcing to raise the oil prices, those refineries needed to buy crude oil at high prices but din't sell at market prices because the govenment set limits for the prices. So the consumers benefit because they needn't pay very high prices to buy oil. However, those refineries are losing money although the government give them subsidies. After raising the prices, the refineries suffer less losses.
Jun 23, 2008 22:24
#5  
  • COOLSPRINGS
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it's a pity that long ago USA authorized Japan light car sector thru collecting key technological patent fees and just focuse itself on truck. Japanese cars are enhancing its glamour from gas saving point of view. Surging cruid is hittting US auto industry and it's estimated it will at least take 4 year for US car industry to catch breath.
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