We all know the price of Gas, Electricity and Petrol (or diesel) has gone up but can anyone tell me why?

Question

We all know the price of Gas, Electricity and Petrol (or diesel) has gone up but can anyone tell me why?

Answer 1

Because corperations and goverments prefere your money to be in their pockets rather than it being in your's..

Answer 2

When demand increases faster than supply, the price rises (basic economics).

There are two reasons why.  Firstly, if lots of people want (or need) your product, you are going to try and make as much money as possible.   Secondly, by increasing the price some people will cut-back on their consumption, reducing demand and shortages....

Answer 3

The combination of a number of factors that have contributed to the increase in the price of crude oil and gas.

Industrialisation of China and India increasing demand.

Price fixing by the European energy giants.

Falling yield from North Sea oil fields.

Massive reduction in Iraq's production since invasion by the US.

Prices hiked by international speculators on the back of uncertainty over future events in Iran.

Answer 4

Demand and supply.

Developing economies such as China and India now demand more of these resources, but the supply simply is not there to cope with the increased demand.

Also, many currencies around the world such as the US dollar and the GBP are depreciating, which makes these resources more expensive.

Answer 5

because the oil producing nations are limiting how much oil is getting onto the market and creating a artifical shortage which is pushing up the price

edit: if this is not true why are Brown and Bush asking OPEC to increase production to make the price drop???????

Answer 6

it's the bloody arabs i tell ya. they know that people are trying to switch to alternate sources of energy and the bloody shysters are trying to make the most of it before they drown in their own oil.

Answer 7

Tht is B'coz d increase in usage of the Gas,Petrol and Ele...but there is no increase in the production...this is wat the reason

Answer 8

politics politic and more politics.

Answer 9

the west is running out of petrol as the east are keeping it all for them selves as they are developing quickly, also new taxes have been introduced to help make us more "Green" and to use less oil.

Answer 10

Because the price of all 3 depends on the price of oil.

However fast oil is running out, fears that it might be sooner rather than later have led to soaring oil prices. The rules of supply and demand apply. The supply of oil is decreasing, we don't know how fast or how long we have left, but it will run out at some point. The demand for oil is increasing, meaning more and more countries need more and more oil to function. The problem is that more and more people need oil at a time when oil is running out (or at least there are fears that it might). This means that people are competing with each other to buy oil, and this pushes up the price.

Another reason for the increase in the cost of oil is instability in the countries who produce oil, such as Iran. Were Iran to be engaged in a war (which looks increasingly possible given its reluctance to halt its nuclear regime) - it would inevitably try to hamper its enemies by not allowing them any oil - which means that even less oil would become available. This again, would increase the cost of oil. As with all markets, the fear that a war COULD happen means that prices increase even if no war ever happens. Buyers anticipating a war would envisage higher prices in the future and would want to buy oil now at a cheaper price. This pushes up the competition to buy oil and again this increases the price.

Since oil is used as a raw material in the production of Gas, Electricity and Petrol, their cost increases too.