High Petrol Price Sounds Positive

The stability of oil price is essential because of the fact that it affects the economy of the world, as well as the U.S. In some countries, the price of commodities varies with accordance to the price of petrol and this is due to transportation costs. A recent estimate of petrol price around the world is approximately 1.10 U. S Dollar per liter according Global Petrol Prices. However, there are mainly two factors that affect oil price negatively or positively: oil production and taxes.

Firstly, countries which are ranked as top oil-producers are characterized by cheaper prices definitely, such as: The United States, Saudi Arabia, Russia, Canada, China, Iran, Iraq, United Arab Emirates. The more the country’s domestic gasoline production booms, the lower the price gets. What is surprising is that although Venezuela is not ranked as one of the top oil productive countries as previously stated, petrol is cheaper than water.
Secondly, in most countries, taxes are highly imposed on fuels which is not only used in transportation as mentioned so far, but it is used most importantly to power agricultural vehicles and machines. This in turn affects the commodities viciously. On the other hand, some environmentalists have a second thought, they believe that petrol should be taxed even higher, and this means there will be more efficient use of oil in order to minimize the danger of pollution that our environment and health is facing. Another vital and interesting point is that this high imposed taxation on fuel encourages carmakers to develop and sell low-carbon technologies. Moreover, it stimulates the share of public transport, walking, cycling and encouraging the use of electric-cars.
All in all, in order to avoid this futuristic dilemma, it sounds reasonable to design state-of-the-art electric autos, even if it is so costive. These will probably be the targeted kind of cars in U.A.E and around the world.