by Veronica Shine

Created on: June 14, 2008   Last Updated: June 27, 2011

Much is being said about the sticker shock you get each week at the pump filling your tank. The price per gallon for gasoline in the United States as well as the rest of the world continues to rise. At present, in Europe, the average price is the equivalent to 10 USD per gallon.

The most incredible part though is the lack of a valid explanation as to why the price of oil has hit all time highs for a barrel for something that was less than $25 per barrel only three years ago.

Are we suffering from "learned helplessness"? The term "learned helplessness" is how psychologists would describe the mental abuse that is placed upon one and the result of giving up any attempt to defend oneself or change the situation.

A parallel can be made with "learned helplessness" and the oil consuming populace that is easy to envision. The silence over the massive increases and has become deafening with the compliancy of the "what can you do" attitude. Like those with "learned helplessness", consumers have learned to take whatever is offered and just roll over.

There are numerous excuses as to why the cost has increased dramatically. The gorging of prices may be contributed by any or all of these reasons.

World Economic Growth

The large oil companies have explained that since 2003, the world's economy has expanded rapidly, especially with China and India becoming manufacturing giants. This growth has increased the demand for energy. As in the case of the transportation, bicycles are being replaced in India. With the world's cheapest automobile available there at a price of less than $3000(the Tata Nano), is it no wonder that this option has made achievable for ownership of people who otherwise would ride their bikes? Of course, the demand for gas because of these nations becomes apparent by going back to Economics 101; "supply and demand", cry the oil companies.

Recession

Some others claim that over the last year with the spiraling decline in interest rates and massive losses with the sub prime mortgages fiasco brought the United States to a recession (yes, it is a recession no matter how the experts try to say it is not and may be on the verge of a world-wide depression). With dire international forecasts for all, including China, the future of oil prices is heading for more than 30 percent in some areas than it is at present. This prediction sounds as if it is a motive to push increases towards the $200 a barrel mark.

Instability

The instability reason blames world events and

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