Why are gas prices to high?

Question

Why do you think gas prices are so high? Is it because of the government charging more in tax to make money, or is it the oil shortage?

Answer 1

because of government subsidies by China and India

answer my question

http://answers.yahoo.com/question/index;...

Answer 2

oil shortage, and also becuase we get all of our money from a company that is located in Venezuala, and from what i can remember the United States hate them... so that's whats making the prices go up.

Answer 3

Two reasons

1) oil costs money to be refined, transported and then it is    taxed

2) the leaders of the oil companies realized that america sees driving as a necessity instead of a luxury. so they will keep shelling out cash to give oil companies net profits in the billions

Answer 4

oil shortage... most of it is forigen... tax, refining, shipping, drilling... and most importantly China and India! growing ecomomy means they use more oil.. the worlds demand is increasing so much faster then ever before. dont be surprized if u see 6-7$ per gal at the end of the year.

Answer 5

No one reason but contributing factors are:

1.) Speculation (especially by hedge funds).

2.) Increased demand by China & India (US useage is down).

3.) Environmental concerns stopping US drilling on US federal lands & offshore. (China is drilling 45 miles off US shores & sucking up oil, much under the US lands).

4.) China is locking up African & Mid East Sources of Oil.

Answer 6

i think a little of both.  as long as people will pay that much.. they'll sell it for that much

Answer 7

You all are wrong!! Oil company's have slowed down on the refining do drive the prices up. In turn overseas production have slowed even more to create more of a demand to raise the prices even more!!! Bush has asked OPEC to step up production. Their reply was no! Why would they? They are making record profits. There is no shortage.

Answer 8

Oil shortage! Demand is too much. People need to car pool more.