Can anybody tell me the reason for gas going up ?

Question

Can anybody tell me the reason for gas going up ?

Answer 1

Greed.

Answer 2

i think because of less oil in saudi arabia

Answer 3

Supply & demand.

The stock markets & investors.

Greed & opportunity.

America is no longer the biggest user of petrol products.   Developing nations like China, Korea & others have recently begun to put a load on the worlds' oil supplies & production.

We have to compete on price (in the stock markets) with all the other world users nowadays.  We're not getting the "prefered customer volume discounts" we used to because there's someone else that wants the oil as bad as we do.

The bigger issue is that crude is plentiful but we don't have the refining infrastructure to make the gas, diesel, kerosene etc on a large enough scale to have an excess.

When oil companies wanted to build refineries, everyone was saying "NIMBY" (Not In My Back Yard) & complaining about their effects on the ecosystems.

Well, the rest of the world was building theirs.

I'm sure more than one OCONUS refinery was built with American oil companies as project managers & I'm sure there were deals made to enrich those same American oil companies.

We keep just enough refinery capacity around to maintain the status quo price structure.  Oh there's more refineries in this country but suddenly they're too outdated to use & cost too much to retrofit.

Now, anytime there's a "glitch" in the weather & a refinery has to slow down or stop for a few days you end up with a "shortage".

This is all the excuse the oil companies need to hike prices.  If the price hikes aren't caused by the oil companies themselves, the middlemen & the stock markets dictate it.

In case no one's noticed it, oil companies are raking in record profits.

I saw a documentary not long ago showing our oil companys' cash flows & net profits. I saw record cash flows but the announced profit percentage was only median compared with other corps.

How could they have brought in so much money & had so much cash profit over years past & yet show such a middle of the road yearly profit?

Answer 4

because than got you by the nuts and mother earth is just about dried up

Answer 5

CORPORATE GREED!  Point...Bush just stated the economy is healthy, no recession. How would he know, he is a greedy evil oilman, making money hand over fist at our expense! How can the big oil companies post record profits, then cry for a tax break to stay competitive? People are freezing because they can't afford to heat their homes, or buy gas to get to work! And the economy is fine? For who?

Answer 6

Fear and speculation. Oil would be a lot cheaper if Wall Street was out of the picture. [That's another story, too long for this message.]. China and other developing countries are using more oil and the planet has reached the "half full" mark.

Answer 7

The immediate reason for gasoline going up lately is the weakening dollar.  If another country's currency strengthens relative to the dollar, then they can buy more and we can buy less of the same item.  

This means if we want to buy crude oil on the global market (the only place to buy oil is on the global market, incidentally), we  have to compete with dollars that don't buy as much as they used to.  While oil gets more expensive here, it gets relatively less expensive elsewhere.

There is also the refinery issue.  With the refinery shutdown last week, this puts a strain on the system.  Terminals and stations normally supplied by that refinery have to source their fuels elsewhere.  Those other sources now have to produce more or charge more for their refinery time.  Since they're already working at 97% capacity, the alternative is to charge more for refinery time.  This increases the cost of fuel.

This is what we're currently dealing with right now.  Terminal supplies are being stretched to accommodate the decreased refinery supply and trucks are having to trvel farthert o resupply the stations.  This adds the landed cost of the gasoline, which shows up at the pump.

Answer 8

The main reason is higher demand.  Supply is relatively constant, so as demand increases, price increases.  Most of the increase in demand is due to developing countries that are slowly becoming industrialized, especially China and India.

Answer 9

Yes, but first things first United States has enough on reserve that we do not have to buy from other countrys the reason being our president is leaving office soon and he owns a oil company so any wonder why gas is going up?? but who knows for sure ??? LOL  What do you think??

Answer 10

BUSH......GW BUSH....Thats why Gas is going up..

When he took office gas was an average of 1.49 a gallon and people had houses

Answer 11

Lots of factors.  Developing nations like China and India are using more and more, driving demand up.  Iraq is still a mess, crippling supply there.  Due to dwindling supplies worldwide oil production is expected to peak within the next few years. Venezuela is nationalizing oil production, leading to less production due to inefficiency in their socialist system.  Production in Iran is dropping due to poor management and lack of reinvestment in infrastructure.  Irate locals in Africa (can't remember which country) are attacking foriegn-owned oil facilities & taking hostages because they aren't getting a share in the profits.

Answer 12

Supply and demand...Suppliers can't make it fast enough for ever increasing customers...No refineries have been built in the US for over 25 years...If one goes down, even for routine servicing or maintenance, the price goes up - just like in any other commodity...We have restricted our exploration and drilling for oil to existing facilities even though we know there are vast reserves within our borders...Oil is used for so many things - lubrication (oil & grease), fuel (jet, diesel, automotive, heat), plastic, asphalt, cement...It is easy to understand why it is a strategic commodity...The slightest hiccup in supplies - regardless of where the supplier is - can affect or even shut down whole industries...That is why the US and our allies are making sure that oil is being shipped smoothly and uninterrupted out of the Persian Gulf.

Sleep well tonight, our military is watching over US.

Answer 13

You need to be more precise.

Are you in America? Where petrol is called gasoline and gas for short, or are you in Europe where petrol is called petrol and gas is called gas?