IMPACT OF SURGING FUEL

"

PRICES ON THE ECONOMY

AND BUSINESSES
NIKOLOZI TSKHADAIA
&
LUKA BERAIA
 CONTENTS OF THE PRESENTATION

• The aim and tasks

• List of relevant words, terms
• Introduction
• Theoretical part of the topic
• Practical research on the topic
• List of references
 THE AIM AND TASKS OF THE
PRESENTATION
• Aim:To explore the economic implications of the recent surge in
fuel prices.
• Tasks:
• Analyze the factors contributing to the increase in fuel prices.
• Examine the economic ripple effect on consumers and
businesses.
LIST OF RELEVANT WORDS, TERMS

• Surge – increase suddenly and powerfully.

• Crude – raw
• Nudge price – to be close to reaching a particular price or level
• Market reeling - The prices and sales on stock markets are moving down
rapidly
• Slashed - decrease
 INTRODUCTION

• The Surge in Gasoline Prices

• Fuel price impact on Economy and Business
• Root Causes of High Fuel Prices
• Global Dynamics and Energy Market Impact
THEORETICAL PART OF THE TOPIC

• Causes of High Fuel Prices:

• Gasoline prices have surged due in large part to rising oil prices.
• Russia's invasion of Ukraine further intensified the increase in crude oil prices.
• Even before COVID-19, energy producers reduced investments and production due to low
prices and shareholder demands.
• During the pandemic, a sharp drop in demand led to low oil prices, but demand has since
rebounded.
• President Joe Biden released oil from the Strategic Petroleum Reserve to stabilize prices, but
relief was short-lived.
• Russia's invasion of Ukraine in February exacerbated energy market instability.
THEORETICAL PART OF THE TOPIC

• Impact on the Economy:

• Higher fuel prices affect not only consumers but also the broader economy.
• Increased fuel costs, especially for diesel, impact transportation costs for
goods moved by trucks, trains, and ships.
• Energy costs, particularly fuel prices, contribute significantly to rising
inflation rates.
THEORETICAL PART OF THE TOPIC

• Impact on Businesses:
• Rising fuel prices are impacting businesses, leading to increased transportation and freight
costs.
• Companies such as Target, Walmart, and Tractor Supply are grappling with higher costs.
• Companies may pass on some of these costs to consumers.
THEORETICAL PART OF THE TOPIC

• Impact on the Economy and Inflation:

• The airline industry is also affected by surging jet fuel prices.
• High fuel prices are contributing to inflationary pressures and increasing the cost of goods
and services.
• The rising cost of diesel fuel has a significant impact on overall freight pricing, adding
pressure to inflation.
THEORETICAL PART OF THE TOPIC

• Relief and Outlook:

• Experts suggest that demand destruction could help lower gasoline prices.
• Despite high prices, demand remains strong due to pent-up demand and a strong labor
market.
• The national average for gasoline is expected to continue rising, potentially reaching $5
during the busy driving season.
• The future of fuel prices is uncertain, and high oil prices may continue to impact the broader
economy.
 CONCLUSION

• The main changes in fuel prices were caused by the war between Ukraine
and Russia and the pandemics. Rising fuel costs have emerged as a
significant challenge for both businesses and consumers. Despite efforts to
lower gasoline prices, demand remains strong due to pent-up demand and a
robust labor market, making the future of fuel prices uncertain, with a
potential continuation of high oil prices affecting the broader economy
RESEARCH ON THE TOPIC

• Type of the research – quantitative.

• The aim of the research was to do analysis and to understand more about
what people think about changes in fuel price. Besides this survey helped us
learn more how people handle this problem.
INFORMATION ABOUT THE RESPONDETS

• In this survey, 49 people participated and that’s the result

QUESTIONNAIRE
QUESTIONNAIRE
QUESTIONNARIE
QUESTIONNARIE
CONCLUSIONS OF THE PERFORMED
RESEARCH

• Most people are affected by the price change of fuel

• It has an impact on their spending and personal budgets
• More than 35% of people started using alternative transport
• They prefer to get news about price changes from gas station signs
LIST OF REFERENCES

• CNBC. (2022, May 19). Fuel is a Problem for Business and Consumers: Why
Prices Are So High. CNBC.
https://www.cnbc.com/2022/05/19/fuel-is-a-problem-for-business-and-consumers-
why-prices-are-so-high.html
• Forbes. (2023, October 5). How to Save Money on Gas. Forbes Advisor.
https://www.forbes.com/advisor/personal-finance/how-to-save-money-on-gas/
• The New York Times. (2023, September 20). Gas Prices Surge, Impacting
Consumers and Businesses. The New York Times.
https://www.nytimes.com/2023/09/20/business/gas-prices.html