Inflation Adjusted Gas Prices

The price of gas has attained an all time high. However, some economists are of the opinion that, inflation adjusted gas prices are negligibly impacted by inflation due to inflation adjustment. Few say, that wages are a more serious cause of concern in comparison to oil as well as gas issues. It has been observed that gas prices are increasing gradually. After the Katrina hurricane struck, most of the refineries as well as pipelines were damaged.

As a result of this, availability of gas declined. This led to the increase in the prices of gases. Recently, it was recorded that in spite of having inflation adjusted gas prices, there was an increase in the cost of gases. Even though the price of gas has increased, it has not increased to the extent, when inflation adjusted gas prices reached the zenith. With the increasing number of passenger carriers, the demand for gas has escalated manifold. This has in turn given a boost to the revenues earned from the oil and gas sector(energy resources). Increase in gas prices can also be attributed to the fact, that the value of Euro is more in comparison to United States dollar. As a result, people have to shell out more for a particular good priced globally.

It is not weird if people are complaining about the increase in cost of gas despite inflation adjusted gas prices. Studies reveal that annual average price, which escalated sharply after Hurricane Katrina, returned to the original. The average price was more or less static the year through. It has been reckoned that the by the end of 2007, the average annual price has chances of exceeding the price of 1980, in the context of inflation adjustments. Some blame the oil companies in the United States for the hike in gas prices. Few feel that due to the increase in demand for oil, the oil companies inflate the gas prices too. They feel, with the increase in oil, there is a simultaneous increase in inflation adjusted gas prices also.