Refinery Blaze Could Push Up Petrol Prices

530 words - 2 pages

How big of a fire could push up the petrol prices up so high? This article is regarding the two effects after the outbreak of the fire on the prices of petrol.Supply is the quality of a good or service that a producer is willing and able to produce at a given price. According to the article, the first example is traced to the Coryton refinery where the outbreak was taken place. The outbreak caused the petrol supply to be cut one fifth short from the UK daily fuel supply. "If the refinery fire affects supplies, this could be sufficient to push the average petrol price over the £1 per litre mark for the first time ever." Oil is a scarce natural resource, which is why there is no method to increase the supply of the oil. Due to these reasons, the supply for oil is decreased and on the graph supply curve shifts to the left and creates a shortage. The shortage then causes the price of oil to shift upwards. As shown on the graph, the supply curve shifts from S0 to S1. This results in the initial price level pushing up from P1 to P2. Demand is the quantity of a good or service that a household or firm chooses to buy at a given price. Consumers cannot transfer to another good in the short-run because there are only a few substitutes for oil. Thus, the quantity demanded will not shift in the short-run. However, in the long-run, consumers will find other variables to take place of the petrol.Price elasticity of demand is the...

Find Another Essay On Refinery blaze could push up petrol prices

Should the Government Increase the Petrol Prices in Developing Countries?

1787 words - 8 pages surcharge of up to 40% on school bus fares when there is increase in petrol prices even SPAD does not approve of its plan (2013). This can directly increase the burden of parents as parents have to spend more expenses on the bus fares of their children. Moreover, the increase of petrol prices can also drive up the cost of electricity and water bills. The decision of government to increase the petrol price can cause the increase on gas price. In 2011’s

UK Petroleum Market Essay

1595 words - 7 pages discouraged potential owners. As tax accounts for almost ¾ of petrol prices, newcomers would have difficulty competing with established companies, as they cannot afford to follow the prices set by the large firms (Sully, 2008). The Office of Fair Trading reported that oil companies are trying to exit the UK retail market. An example would be Total selling its forecourts to Rontec Investments and Murco’s forecourts being put up for sale for over a

Flying on empty - America's airlines

1184 words - 5 pages , the older, "legacy" airlines, with their much bigger fixed costs, are unable simply to pass the higher oil prices onto their customers.Yet earlier this summer there were some signs of light in the skies. Airline passenger numbers were up. Planes were on average 79% full, which was a small improvement. Revenues per seat ("yields") were still falling (1.8% down on the same period in 2004), but that is part of a long-term trend. Thanks to fierce cost

Population in India Equates to Unbelievable Traffic

1172 words - 5 pages the Petroleum Company and chalk out a plan to increase the profitability of the Fill-Full chain. (5) Q2. Suggest new business options which can be operated from its petrol pumps. (5) Answers Answer1. Strengths 1. India's major oil and gas company 2. Operates largest Lube refiniery in India 3. Large product portfolio 4. Owns and operates the largest Lube Refinery in India producing Lube Base Oils of international standards 5. Produces over 300

The Negative Side of Rare Earth Metals

1312 words - 5 pages world, and possibly lead to higher prices for consumers. Even though China is currently controlling over 90 percent of this market, many of the rare earth metals can be mined in the United States. According to James Areddy, writer for The Wall Street Journal “China is building strategic reserves in rare-earth metals, an effort that could give Beijing increased power to influence global prices and supplies in a sector it already dominates

Oil Industry

1434 words - 6 pages The Oil Industry: "Why Companies Are Not Getting a Fair Shake" Within the last two years, the oil industry has increased the price of oil causing gas prices to rise to $3.00 a gallon today. It was only a few years ago that the price of gas was $1.00 a gallon. There have been many complaints against the oil industry on price gauging and monopolizing the industry. Oil companies are reaching sales up to $100 billion and they are seeing

Chevron: company overview-role of government regulations for oil company and issues and opportunities companies face

1616 words - 6 pages , and the Middle East. The company developed new methods for oil exploration including off shore drilling and refinery structuring that would allow them to produce up to 150,000 barrels of oil a day.In 1977 the company went through an organizational change and became Chevron USA. With the familiar logo, and a strong financial history, Chevron has remained a leader in the industry and marked the company centennial in 1979. Today, Chevron realizing

Ethics and Negotiation - Case study

2376 words - 10 pages the parties as well as setting up a negative sentiment for future disputes and negotiations.Case study: BP Texas RefineryA recent accident at the BP Texas refinery provides us with an example of the potential ramifications of adopting an unethical stance in negotiation. According to Laredo Morning Times (2005), despite numerous criticisms by the American Occupational Safety and Health Administration (OSHA) of willfully violating safety rules and

The Image of Corporate America

1007 words - 5 pages started the bidding war at $500, but Rockefeller countered; this continued for hours with the price exceeding $65000 until an exhausted Clark sold his stake for $72000, shaking hands with Rockefeller. But as Clark walked out of the door, a stoic Rockefeller produced a wide grin; his plans for the refinery had already been executed. No one could stop him now. From the late 1800s to the early 1900s, Standard Oil dominated the oil industry and

Petroleum: Fossils to Fuel

848 words - 3 pages Petroleum; or crude oil (‘unprocessed oil’ that is taken from the ground), is a naturally occurring oily, bituminous liquid composed of various organic chemicals called hydrocarbons. Petroleum contains gaseous, liquid and solid elements. The viscosity (the ability of a liquid to flow) of petroleum varies from a liquid as thin as petrol to a liquid so thick that it will barely pour. The number of hydrocarbons present in each petroleum deposit

Oil Exploration And Refining

1605 words - 6 pages thousands of miles away from the producing fields, gas processing plants usually are near the fields, so impurities-water, sulfur, and natural gas liquids-can be removed, before the gas is piped to customers.2) Explain why petrol is a challenging refinery product whereas diesel is more a straight run product. Consider aspects like volatility, octane rating, cetane number and variations between summer and winter fuels.Petrol requires careful

Similar Essays

Oil Refinary Essay

1830 words - 8 pages distribution, and production is applied universally. Actually, the high prices of oil haven’t been the single purpose for great investments within the industry of oil refining. The regulatory variations of safety and environmental have strained this sector in purpose of enhancement certain processes of refinery to reduce those associated impacts of human and environment with the consumption of oil products alongside to the refinery operation. Thus, it is

Should The Government Increase The Petrol Prices In Developing Countries?

2084 words - 9 pages is increase in petrol prices even though they have been discouraged by the SPAD to do so. Moreover, the increase in petrol prices can also drive up the cost of electricity. The governments’ decision to increase petrol prices can result in the increase of gas price as well. From the announcement made by Tenaga Nasional Berhad (2011) , they increased the electricity tariff during the year 2011 to cover the additional cost in order to tandem with the

The Oild And Petroleum Industry Essay

2053 words - 8 pages financial results to improve in 2011 due to the increase in the demand and price for crude oil and gas (PETRONAS, 2011). In 2012, PETRONAS revenue continued to increase due to higher realized prices. Cost-push inflation is when the general price level increases due to an increase in the cost of production (Deviga Vengedasalam. and Karunagaran Madhavan., 2010). This inflation can be reflected by Shell in 2011, Shell’s cost of sales increased by

Literature Review On Reasons For Changing Petrol Prices

2369 words - 10 pages which will then cause the inflation of prices. If this article had to be analysed in the point of view of the American economy it is fairly informative and brings up good issues that locals would be interested in. “Markets hit by fears that Syria attack could raise fuel prices”- Terry Macalister, The Guardian. Those are the words written by the journalist and author of the article published by The Guardian. Motorists are warned (as usual) about the