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Rising Fuel Costs and US Transport Industry - Essay Example
Author : mullernyasia
Pages 5 (1255 words)
The effects of the rise in fuel are on a global scale, with the transport industry being the hardest hit owing to its operational dependence on oil. When fuel becomes expensive, commuters not only change their traveling habits, they are also forced to part with more cash (Coyle, Bardi & Novack, 2006)…
Consequently, comfort is often sacrificed in an attempt to cut back on the fuel budget.
Often, Americans have had to make do with fewer cars, or shift to fuel efficient ones. In addition, car pooling has become a common practice among friends and families while air travel is not only restricted, but also limited to either official travels, or longer journeys that would otherwise be uneconomical with the use of a car (Coyle et al, 2006). By and large, the use of public modes of transport has increased. In fact, ridership by public transport in the United States rose by 15 percent in 2007. For those in the taxi business, these have especially been hardest hit , and this has forced some of the operators to increase fares, only to have their customers walk away from them (ACTE, 2008).
The airlines too, have not bee spared either, with a coupe of them such as Delta and American airlines recording massive annual losses in the range of $ 1 billion (KLEIN, 2008). With such a gloomy picture having been slapped on the American transport industry, is there any respite for the Americans in the near future
For the last six years, the price of gasoline, crude oil and natural gas has significantly risen. In 2000, a barrel of crude oil ranged from $ 25 and $ 30 per barrel. This was later to rise to a high of $ 75 per barrel six years later. ...