If the demand of gas is going down, then why are the prices going up?

Question

More and more people are limiting how much gas they use, therefore making the demand for it go down. If that's so, why do the prices keep rising?

Answer 1

The short answer:  decreased demand is actually just keeping the price from being higher.  If people hadn't dropped their demand, we'd be seeing even more expensive gas.

There are a lot of things driving the cost of gas now.  I highly recommend the article below that discusses a lot of the factors.

Answer 2

Big Oil sees American resistance against their price gouging; they're angry and are pushing harder against American citizens.

Big Oil is in for a fight, for UNITED DEFIANCE is what made America great to begin with---and people nationwide are ANGRY!!!

Answer 3

Statistical evidence on how much they're limiting it would be nice...but in the absence of that, it's probably because they're not limiting it enough.  In order to have any hope of lowering gas prices, lots of people need to make major changes, such as switching to public transit, moving closer to work, or trading their SUVs and pickups in for hybrids.  In the short run, it is very difficult to have any impact on prices.

Also, don't forget that demand in increasing in China and India...

Answer 4

People in America are demanding less gas over all, but countries like India and China are demanding more oil, and since oil is required for gas production, demand for oil is overall increasing.  Even worse is that some of these countries subsidies gas prices, so consumers within that country are unaware of the increase in prices, so they don't alter their consumption.

Answer 5

because the dollar is collapsing faster each day.