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    March 12, 2021

    Useful information

    Gas price in 1981

    Gas prices 1981 year

    The development of gas prices in 1981 underwent significant changes after Ronald Reagan’s victory in the presidential election. The topic, the price equivalent of which was $ 1.31, is extremely interesting, so we suggest you read it in more detail.

    Data

    At the time, there was agreement within the company between gas producers, importers and suppliers that the cost of it was tied to the price of oil. This agreement had no political background and was not bound by any law. This fixation of the gas price 1981 for oil arose at about the same time as the creation of OAPEC, an association of oil-exporting countries that still exists today, which created stability in oil prices. The background to this commitment was the secure construction of supply infrastructure. This obligation was transferred to the consumer and was regulated by the fact that in the event of a change in gasoline prices 1981 in the oil market – the cost will also be adjusted. However, over the years, the Supreme Court has ruled that such an agreement is unacceptable to America. Following the court’s decision, the price increase could no longer be based on the price of oil, so the end user could be given a special right of termination in the event of a price increase. Prior to the adoption of this law, costs were rising steadily due to the fixation of oil prices. The cost followed the rise in oil prices with a delay. However, this price increase did not correspond to the cost of natural gas production and import. The costs were lower. Restrictions on oil price fixation have led to independent price developments. As a result, according to the court’s decision, the value of fuel and the price of oil developed differently. The decisive main factors for this decision were the supply and demand of consumers, because this form of heating is more popular than oil heating. Unlike heating the oil, the fuel is fed directly inside and does not represent a buffer capability.

    Criteria influencing prices

    • Increased demand for fuel;

    • Crises, market inflation can also have a direct impact on price. There were fears that the state would cut off gas supplies, which would lead to a sharp rise in prices;

    • According to the Energy Watch Group, the maximum natural fuel production will be reached in 2022. Over time, production will decrease significantly, which will lead to higher prices with the same demand;

    • In addition to these main factors, there are many secondary factors that can affect the price of gas. The fee for the use of the gas network may change, the costs of marketing and distribution of the gas supplier are passed on to the consumer, and changes in production and concession fees may affect the value of gas. A change in value added tax or gas tax also affects its value;

    • Today’s gas price depends on many factors. It depends on political developments in the producing countries and on the world economy. For the end user, it is possible to change the supplier with rising prices, but in the long run, the value of gas will rise due to its insufficiency.

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