Study on the Reasonable Price of Unleaded Gasoline by using Grey Relational Analysis Method

Yuan-Chieh Chin, Ting-Hui Hsu, Chi-Chang Chou, and Kun-Lung Cheng


International crude oil prices, Rational income, Grey relation analysis, Reasonable prices


Recently, international crude oil prices remain high, which are around 100 USD for one barrel. The economic impact under the high oil prices may become the most anticipated issue. Due to the double up of both gasoline and electric recently, the reasonable prices of domestic gasoline become universal lively discussion topic. The paper uses the sorting gasoline weighting obtained from grey relational analysis to be compared with Taiwan's neighboring countries and decides whether the gasoline prices in Taiwan are reasonable or not. First, the data of 92 unleaded gasoline prices, international crude oil prices as well as the national income in Taiwan and neighboring countries in 2008 are used in grey relational analysis. It is to discuss the reasonable prices of the gasoline in Taiwan and neighboring countries. The results show that the gasoline prices in Taiwan are a bit higher. They are a little higher than the gasoline prices in Japan and Singapore, but they are much higher than the gasoline prices in Korea. After the analysis, it is found that there is still falling space in Taiwan’s gasoline prices. Also, the declining of the gasoline prices can slow down people's grievances caused by inflation and stabilize the domestic economy.

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