US Citizens Fear Oil Companies Will Raise Gasoline Prices Following Iraq Crisis

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27th June 2014 16:39 - Oil and Gas

Market research conducted with 1,000 American adults has suggested that more than half (56%) suspect that oil companies responsible for producing gasoline and setting prices will use the news coming out of Iraq as an ‘excuse’ to raise the price of fuel. However, a third of respondents interviewed via the telephone survey also felt that prices would increase – but as a result of real shortages caused by the current state of political unrest in the country.

The survey of adults living in the United States also outlined the fact that more than two thirds of people (68%) are paying more than they were six months ago for a gallon of gasoline (petrol in the UK). Around a quarter (23%) reported paying around the same price, with fewer than one in twenty (3%) stating that they were paying less now than six months ago.

When asked to think about how the price of gasoline might be affected in six months’ time, more than four in five Americans (85%) said they felt it was at least somewhat likely that they would be paying more than the cost today for a gallon. That figure includes 63% who said it was very likely. Only 8% said it was either not very, or not at all, likely that the price would rise.

14% of Americans did not expect the average price of a gallon of gasoline to rise above $4.00.

For perspective, the current price (June 2014) of a gallon of gasoline in the United States is somewhere in the region of $3.75 to $4.00. The current average UK price for a litre of unleaded petrol is £1.31. There are 3.785 litres of petrol in a US gallon, producing a comparative price of £4.91 per US gallon, or $8.36 in US currency based on the current exchange rate.

Looking at the prices another way, in the United States, a litre of gasoline is around $1.01 – the equivalent of around £0.59 when utilising current exchange rates.

The state of Iraq is currently in a state of turmoil, with militants from the ISIS group undertaking offensive operations against the Iraqi army. ISIS stands for Islamic State in Iraq and the Levant. The group is a militant jihadist group which has broken away from al-Qaeda and is currently active in Iraq and Syria.

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