Monday 1 April 2013

Fuel prices and spending

Gasoline, Petrol, Fuel, whatever you want to call it is an inelastic good. It is an essential part of our lives. Without fuel, we cannot drive our cars, products cannot get to market or even be made. Therefore we are held to the ransom on fuel prices. Before you start shouting at the fuel companies have a think at how the costs are so high at the pump. In the UK 80 pence in every pound spent goes to the Government in the form of tax. When fuel prices rise, the article attached claims that for every cent that the price rises for fuel, there is $1bn less to spend in the economy.  Walmart is trying to help their customers by offering discounts on fuel if they use their Walmart credit card. Your thoughts please. Walmart fuel

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