What is the real reason gas prices have risen so much?

Question

I want to understand what has really happened to cause the gas prices to go up so much and what needs to happen realistically for them to decrease again?

Answer 1

its more then one reason its a whole bunch of stuff and it going up even more, here in america we pay less then alot of countrys, but its still rediculous, and the reason our countrys economy is doing bad,

Answer 2

Our ignorance and apathy as Americans. All we do is sit on the couch and complain. Are you involved in making things any better? Have you contacted your state representatives? Have you told them what you want? Have you worked with others to put pressure on the groups who continue to feed the oil corporations millions and millions of dollars each year?

Do your research. Who has had the most connections w/the Saudis since the turn of the 20th century? If you can answer that question you already know the answer and have work to do. If you don't, and you are serious about what really happened to cause all this get reading. Then act!

moveon.org, is a good place to start.

Answer 3

There is enough oil, people saying there is a lack of oil is not true.  Its that there are not enough refineries to turn that oil in to gasoline.  If they were to build more refineries there would be a drop in the price.  Also the government has a reserve on fuel.  A large percentage of the fuel available is reserved by the military for the government.  My father in law worked in the industry with oil when he was in the Army.  He told us that if the government would take a less percentage for their reserve then the prices would go down drastically.  The oil companies will prevent the building of new refineries because they are making such huge profits that it would be taking money out of their pockets.  They are out for themselves and not for the greater good of the people who allow them to make more money in a day then most of us will make in 10 lifetimes.  

Answer 4

If anyone really has a problem with Big Oil making so much money then go buy some stock in Big Oil.  Simple answer.

Answer 5

politics and big oil !!!

Answer 6

the real reason price of gas has gone up is simply because oil prices have gone up ;)

but im sure you meant oil when you asked and the answer is theres a few reasons:

speculation

supply/demand

war

amonst others

Answer 7

when crude oil was $25 a barrel,oil companies were breaking even. to sum up the reason of why gas costs so much,its basically just the business of making money. for gas prices to go down, people would have to stop being so d**n greedy. hope this helps.  

Answer 8

Reduced supply, increased demand. End of story.

Answer 9

Because, since January 2007, oil prices have increased 182 percent.

The Oil companies, who refine oil into gasoline, must buy 70% of the oil they refine, from other countries.

Gasoline prices increased 91% in the same period.

Answer 10

Gas = money$ Exxon, Mobil ,Shell etc like money$ you need gas for you car =  need and demand. you need it they got it. Less demand = less price. So, next time little Johnny needs a ride to his play date maybe his mother will say no  and they will  save some gas so the demand is not so great.

Answer 11

He is correct.  It is economics 101.  

There is an increased damand worldwide for oil.  The oil producers do not want to increase there supply, therefore prices go up.  

To really get a decrease, congress needs to open up the oil fields in the US.  When that happens, opec and such will increase supply to drop the price of oil so that we won't drill here.

Supply goes up, demand stays the same price drops.  

also, notice when gas hit $4.00.  There was a report that stated American drivers drove a billion odd less miles in a given month than the year before.  Therefore demand went down

Supply the same - demand decrease=price decrease.

Answer 12

most oil goes to the millitary for war...

and there arent that much oil mines let

Answer 13

Because the companies selling gas realized that people would still buy the gas and that this would increase corporate profits, executive bonuses, and stock holders value.

This is their job.  This is why they are in the oil business.

Earth Needs Big Oil Profit

Answer 14

War,Capitalism,war and Bush.

Answer 15

greed..

in 05 three major oil companies released an internal memo saying that  the only way to keep up profits is by reducing refinery output.

http://www.consumerwatchdog.org/energy/a...

The significance of this is that they then tell congress that environmental rules have prevented them from building new refineries.

They closed refineries to jack up prices.