Who is responsible and for gas praises going up and who is racing it up?

Question

who ever it is is been very greedy in doing it.

Answer 1

The bulk of the rise in price is due to the devaluation of the dollar.   The relationship is complex, but when you are purchasing things on the world market, and the dollar drops against all major currencies, you will be forced to pay more for the same exact thing.  Our dollar has lost 40% of its value in the last 5 years.   As a result, investors are shifting their money to commodities which are the safest investment at times of rapid inflation.   Oil, precious metals, and food are making people money, so everybody is shifting their money to them, driving up the prices even faster than it would through inflation alone.

The only way that this cycle will stop is when the US stabilizes its dollar, and then the speculation bubble will pop.  Unfortunately, because the Federal Reserve created this mess, we are now in a situation that whatever the Federal Reserve does, it will either create more inflation or hurt the economy.

We are in for a long downhill trip into the abyss.

Answer 2

The government is responsible. Don't believe everything you see in the mass media. I suppose there are some truths in it, but the answers they feed us still leave question marks in my mind.

Ignorance is not bliss. Ignorance is ignorance. Education is key. Don't back up ANYTHING without proper research.

High gas prices are benefiting FEW while causing suffering for MANY.

Answer 3

HUMANS.

We hog and use transportation like theres no tommorw therefore limiting the amount of oil this country gets. We need to find other ways for transportation and/or more valuable renewable resources to work with.

Answer 4

Not the point anymore.

Gas prices will keep rising, it's time to seriously look into other RENEWABLE fuel sources.

Answer 5

I think it is probably Mr. President. It is because the oil has gone up. But we should've known about this before because everything has, and will keep going up. I guess, in a way, we are all to blame.

Answer 6

well according to the CEO of BP, the demand for gas is 86 million barrels per day and the industry is only able to supply 85 million barrels per day. therefor, they have to keep jacking up the price so less people will buy and/or people will buy less...otherwise they wont be able to meet the demand. also, the decline in the value of the US dollar is also making us suffer since we get around half of our oil from foreign countries. Trust me, i just got back from europe...i didnt see a single pair of shorts for less than 50 euro (around 75 dollars). and i spent 6 euro on a burger (about 9 dollars) and ONE beer cost 2.50 euro (about 4 dollars). the europeans had no problem paying for it, but i was digging holes in my pockets.

Answer 7

I'm not praising gas prices.  I hate 'em!  The market manipulation is occurring on the part of speculators, namely, investment bankers who got their asses burned in the mortgage meltdown.  So they needed another system to 'game', and oil is the one they chose.  They're taking a page out Enron's book, and we all know how that turned out - the former CEO hung himself in jail;  that's justice enough, but it's not going to replace all the life savings that were wiped out in the process.  The people who CAN fix this are the Commodity Futures Trading Commission, by regulating inordinate trade.

Answer 8

f@#$ renewable fuel! I hate tree huggers!

hey its the governments fault and the dollar that is depreciated! if the dollar gains value compared to other currencies then the gas price for the barrel will go down! that's the truth! OPEC isn't doing much other than providing us with the fuel that we need to live in a big city, etc...

Answer 9

I know, difficult question... We've all heard so many things...

Its the war, costing so much and the hostility keeps us from the oil.

its the democrats, wanting to raise prices so we will look for renewable energy.

its the natural disasters, such as hurricanes, wiping out our rigs off shore.

blah blah blah

All I know is that my dad builds oil tankers and most of my family on that side is involved somehow in oil. Its all joke really. Oil is completely unnecessary for our survival as a species, and no longer necessary for the survival or improvement of our technology... get with the program, go green.

Answer 10

The underlying (long term trend) is due to gasoline demand being high and supplies being flat.  However, the current high prices are fueled mainly by two things.  The artificially high dollar has been allowed to come down to its natural level to allow US manufactured products to be competitive abroad (makes middle class, well paying jobs) but causes anything imported to cost more (like oil).  In addition, fears about the stability of the oil supply based on possible disruptions by terrorism and state violence (Iran, Russia) have caused lack of price stability.  Futures speculators, although beneficial in general, make money on price variances and the fears drive bid prices up.  This is a bubble that is expected to burst in the not too near future (so whoever wins the election will claim they did it :)  ) with a substantial price decrease.  Interestingly enough, throughout the record profits, energy company returns have been less then average with the large profits due almost entirely to mergers creating much larger companies.  Long term prices will, however, continue to climb faster then inflation simply because oil is getting more expensive to pump as the "easy" oil (on land/liquid form) is dwindling and sources such as oil shales are being more used.  

Really, the main greed is in governments as they have refused to lower taxes even though the higher prices mean they are taking in more funds then expected.