What is the reason for the gas prices to go high?

Question

I was wondering that why are the gas prices risen significantly in the past few years???

Answer 1

They claim it is due to a lack of oil, but personally I don't believe it.  I saw the same thing back in the early 1970's where they dumped oil in the deserts.  Look the oil company's are showing unheard record profits and now alas! they have new resources for drilling.  They were making great profits before, the owners of the oil cartel's were never hurting, this in my ever so humble opinion is strictly base on greed, greed, greed, so sad to say.

Answer 2

You haven't been listening to the news at all, have you?

Crude oil prices went up a bit.  Then Katrina damaged a bunch of oil rigs in the Gulf and a lot of refining capacity along the Gulf Coast.  That drove the price of gasoline way up.  Then the crude prices went up further, while refining capacity still wasn't back up to speed.  That drove prices up further.  Then crude went up even further while refining capacity rebounded, and prices held almost steady for a year.  Then crude went through the roof.

Add on to that the exploding motoring market in the world's two most populous nations, India and China, and the demand for fuel has gone through the roof while the capacity to generate more hasn't kept pace.  Higher demand = higher prices.  Add on to that that financial speculators are jumping onto the money train of crude oil commodity trading, and they drive the price even higher.  Who winds up getting it in the shorts?  You do, if you want to buy gas.

Answer 3

Speculators buy and sell oil at prices determined by the predictions of oil prices in the future. So basically they buy and sell oil today based on what prices will be tomorrow. So, even though, we have a lot of oil today, we are paying for that prediction that we will not have much oil in the future.

Events like natural disasters (hurricanes, earthquakes, and tsunamis) that either disrupt production, transportation or increase demand, along with political unrest and war also provide excuses to jack up the price.

Oil companies do not operate on the law of supply and demand like the rest of the economy, so they use speculators to drive up the cost when there is no legitimate reason for the price to be high. Basically, there is no reason for the price to be high. The oil companies are just taking advantage of us.

Answer 4

To sum it up easy and simple, speculators. If your still trying to increase your car's fuel economy or get more out of your gas to save for other things, check out my source as it has a MPG calculator and other tips to help you during your commutes.