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[E133]Effect Of Gas Prices

by Matthew Paolini, Mat

Gas prices have been steadily climbing for the past few months - though the costs nationwide have dropped slightly in the past week -- and are threatening to become the biggest concern of the summer. The national average price for a gallon of unleaded regular gasoline now stands at just above 3 dollars, up a full 25 cents from the same time in 2006.

Many have directed their ire at the 'Big Oil' companies, who are reaping huge profits from the high gas prices. However, in an industry as complicated as the oil/gas business it is difficult to locate one determinative factor to point the finger at. Analysts have run the gamut, from lambasting industry executives, to pointedly noting the lack of domestic oil refining capacity, to admitting that the supply of oil may be decreasing globally -- although those who assert the latter are distinctly in the minority at present.

Gasoline consumers all around the country are justifiably worried about the rising prices. Recently in Texas the average price of retail gasoline climbed for a 14th straight week. A weekly AAA-Texas gas price survey showed uneven price trends, with prices reaching record highs in some areas but falling in others. AAA spokeswoman Rose Rougeau said that Texas cities Amarillo and El Paso recently set new record highs, while prices edged lower in eight other cities. Rougeau posited that strong consumer demand, decreased domestic output because of refinery issues and lower gas imports apparently continue to keep prices high.

In nearby Arizona, gas prices also recently rose for roughly 14 week in a row. According to an AAA-Arizona survey, the statewide average for a gallon of regular gas was 3 dollars and 9 cents per gallon. That's a penny below last summer's costliest price, and creeping closer to the all-time record of 3 dollars and 13 cent per gallon set in September 2005.

Getting back to the theories of why gasoline costs keep going higher, the lack of oil refining capacity seems to be the most repeated response. Some industry experts blame Congress, saying that the elected officials are preoccupied with forcing auto companies to meet unrealistic targets for fuel efficiency, while not taking the time to address the oil refining problem. On May 8, the Senate Commerce Committee voted to raise fuel economy standards to an average of 35 miles per gallon in 2020 for cars and light trucks, with standards rising on a four percent annual basis until 2030.

According to some industry observers, Congress has depressed the construction of new oil refining capacity through proposed legislation that penalizes refiners when prices rise, that levies onerous and costly permit requirements for construction of new refineries and expansion at existing sites, and that allows for a degree of tort risk.

Building more refineries would certainly ameliorate the gasoline supply problem, but because they can be so damaging to the surrounding environment, it is very hard to find a community that will endorse a new refinery. Under the logic of 'NIMBY' (Not In My Backyard), people like to fill their cars up at low prices, but they don't want a refinery close to home.

As the global economy sees some of its most volatile days in recent history, many markets have been slammed to and fro at the whims of dodgy investors, and one of the great industries suffering at the moment is oil. Over the last few months, oil stock has been sold and traded so erratically that some days have seen up to $5 changes in the price of a barrel.

Though this unbalanced time of trading is sprouting early gray hairs on the heads of investors and oil companies, it's also producing a great number of smiles among car drivers. As crude oil prices shift, bounce, and drop, the effect of all that inconsistency has proven to be lower gasoline prices for American consumers. Though July saw the highest gas prices in American history, the last four months have born nothing but price cuts, leaving the national average gas price in November barely above $2, which is almost a 50% price reduction from the demoralizing peak of summer gas prices.

When prices dropped below the $3 mark a month or two ago, you could almost hear America sigh in relief. Those $4 gas prices undoubtedly took their toll on American consumers, but vehicle-based businesses perhaps felt even greater pressure. Individuals can cut back on auto usage, but businesses that make their money from transport or shipping can't, which meant that there was no alternative to spending that extra money on fuel. So now that gasoline is back down to prices that haven't been seen since the winter of 2006-07, there is every reason for such businesses to cheer.

In fact, with gas prices now so low, it may be the appropriate time to consider the purchase of a mobile franchise. A great business opportunity, mobile franchises offer all the potential income of their office-based counterparts, but without the overhead costs of renting a location and keeping mass amounts of stock on hand. Though there is no business without cost, these business opportunities are far less expensive than many other options, and here are a few of the better choices within this category of franchise.

1-800-DryClean

Working in conjunction with a local dry cleaner, this franchise business serves as the go-between, providing customers with the option to have their dry cleaning picked up, cleaned, and returned without them ever having to leave their homes. And with the easy-to-remember phone number directing business to a call center that then distributes work to each franchisee, finding business is fairly simple.

Future Stars Sports Photography

A part of the Pegasus School Images brand, Future Stars Sports Photographyis an excellent business opportunity for anyone interested in using their creativity to make kids look good for their parents. The franchise package comes equipped with all a franchisee needs to know about photography and the business, online franchise tools, business cards and envelopes, in-house graphic arts and bookkeeping departments, and a "no hassle guarantee" system that ensures client satisfaction.

Cartridge On Wheels

This home based business affords franchisees the opportunity to run an entire business out of the back of a van and gives clients the freedom to purchase printer and fax products where they're most comfortable: their own office. The vans are professionally decorated to spotlight the business name, and franchisees receive exceptional classroom and on-the-job training, as well as semi-annual support visits and a complete operations manual.

Standard Paints Inc.-Wood Defender

For one of the lowest initial startup costs in the franchise industry, Standard Paints Inc.-Wood Defender franchisees become the owners of a simple business with an almost unlimited client base. Operating a one-man show, owners of this home business use specialized equipment to stain wood fences, increasing their curb appeal as well as their water resistance and adding years to each fence's lifespan. Generally, franchisees see a 70% profit margin on each job.

Doody Calls

With a much needed sense of levity, Doody Calls attends seriously to the business of pet waste cleanup. Franchisees build a team of route workers who hit the town to visit client homes and scoop the dog doo that customers don't have time or energy to attend to. Initial training is given to provide work from home franchisees with all they need to know about dog behavior, route development, business management, PR, and attaining community contracts.

Founded by an entrepreneur with tons of previous experience in creating successful businesses, this latest expression of her business talent is the only one of its kind: renting out high quality portable restrooms for use in weddings and other special outdoor events. Delivery and setup are often performed by an employee while the franchisee focuses on developing relationships with wedding planners and other event planning industry professionals.

MaidPro

This business is a simple and successful one, in which the franchisee is responsible to work at home, hiring and managing employees, overseeing systems and procedures, and ensuring continued growth of the business. The business plan is fully established, complete with a company intranet, world-class marketing, an impressive software package, and cleaning methods bred out of an obsession with cleanliness. This mobile franchise is well on its way to being the next cleaning industry megastar.

Of course, choosing a business based solely on the price of its necessary resources (in this case, gasoline) is a little absurd, and that is in no way what this article is advocating, but if you were already interested in a business similar to any of these listed, then consider a mobile franchise alternative, which can save you money on overhead, provide great service to clients, and now save a great deal on gas as well.

There's no telling what the future of gasoline prices will be, but we do know that for now, we have prices almost as good as they've ever been, so it may be time to take advantage of that.

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Both Matthew Paolini & Candice Clem are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Matthew Paolini has sinced written about articles on various topics from Home, web development and Travel and Leisure. Matthew Paolini is a consultant with for the. Matthew Paolini's top article generates over 33100 views. to your Favourites.

Candice Clem has sinced written about articles on various topics from Work From Home, Online College and Work From Home. . Candice Clem's top article generates over 60500 views. to your Favourites.