Gasoline prices

Abstract

The increasing gas prices are negatively affecting on the delivery services companies because there is a direct link of transportation with the gasoline. This paper focuses on the increased prices of gasoline and the trend of gasoline prices in the upcoming years. This paper analysis the trend of gasoline prices and predicts the price for the year 2020. It shows that prices will slightly decrease and will not show any significant change. This paper states that the gas prices have an adverse affect on the logistics and transportation companies.

Table of Contents

Abstract1

Introduction4

Discussion4

Reason for project development4

Trends of gas prices5

Effect of increasing gas prices on the service delivery company5

Project's significance to the company6

Explanation of statistical analysis7

Conclusion8

References9

Gasoline prices

Introduction

The increasing gas prices are affecting negatively on the delivery service com companies such as transportation and logistics companies. The increasing prices are increasing the transportation cost also that is affecting on the delivery services companies. The delivery trucks consume more gas than a normal vehicle such as car, therefore, the delivery service companies are going through a down phase in which their own profits are declining, and the profits of gas companies are inclining. The high gas prices follow a general rule of demand and supply, that is, when a demand of product is high, it prices increases, and supply decreases. This phenomenon is occurring in the society and gas price is following the same theory. The gas prices are kept on increasing and will remain increasing for the next ten years because the inflation raise s the prices of a good that lessen the purchasing power of consumers. The higher prices of gasoline adversely affect on profits and revenues of transportation and Logistics Company, generally known as delivery service companies.. The growth rate of transportation companies reduced because new entrants are not investing heavily on this side.

Discussion

Reason for project development

The reason for developing the report on increasing gas prices is to predict the future trend of gas prices that can help the service delivery company in forecasting their revenue and making a decision that can benefit the company in the future. This project help the company is knowing the positive or negative effect of the increasing gas prices on the company's productivity, profitability, and growth.

Trends of gas prices

Anderson et al. (2011) stated that the gas prices in U.S. re rising since many years and not even in U.S., the trend of gas prices are rising in every country. However, from April 20123 to May 2012, the gas rates are fluctuating. It is showing both; increasing and decreasing trend but the decreasing trend is not that much effective because it decreases by 0.030 or by 0.025. It shows that the del9ivery service companies are not in safe phase because these prices do not show any effectual decrease in the gas prices. In April, 2012, the price of gas was 3.830, and in May, 2012, the price of gas is 3.754. Hence, from these figures, it is predicted that the gas prices will not show any positive ...