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Gas prices are set by a supply and demand system. If something happens that effects that system then the price can go up or down. Gas prices will go up in the United States when a Hurricane hits the Gulf of Mexico coast and the Oil processing plants and Oil rigs have to close down. The demand for the oil/gas goes up and the supply goes down so the prices go up. In a situation like the Swine flu gas prices are going down because the demand is going down while the supply is going up. As the demand for gas/oil goes up the prices will follow.
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Why is the price of oil consistently increasing which is causing petrol to rocket in price?
Oil is set by the oil cartels and the government. They have their own reasons, including greed to set the prices the way they do.
Does the changing of petrol price affect the rate of inflation?
The changing of petrol price affects the rate of inflation. When petrol price increases, it follows that the cost of production and transportation of most goods also increase.
Does the price of oil affect the price of petrol?
Yes, petrol prices will move slightly to reflect the oil price, although in the UK the the oil cost is a very small part of the price per litre, tax and fuel duty makes up the majority of the cost. Also as petrol if produced through fractal distillation (separation of crude oil) the price of petrol is most likely to increase slightly through the price of oil.
How the non price price factors affect demand and supply?
By doing the factors..
If the price of petrol decrease from R3.49 to R3.43 per liter what is the percentage decrease?
0.98%
