Why are the gasoline prices so high? Will they ever get below $2.00/gal again?

Question

Why are the gasoline prices so high? Will they ever get below $2.00/gal again?

Answer 1

no

Answer 2

lucky to see it below 3 bucks a gal

Answer 3

no they never will

demand for oil is growing and supply is going down

they r saying it will hit $4 by the end of may

it will just keep goin up

Answer 4

1...china and India are using 200 times oil they used 10 yrs ago....2 easy fields r running out...Mexico,,,north sea... Saudi Arabia.....future oil will come from 10,000 feet in ocean...wells cost 250 million to drill. and oil shale...cost a lot to dig and prosess..3..oil exporters realize they have us....most took over fields from oil cos...in 1980s and 1990s... 4  stricter pollution controls make more refining necessary   no you will not see 2 dollar oil again  and the dollar is worth less...so exporters and oil cos need more of them to stay even...

Answer 5

China and India have industrialized. They're now bringing in huge imports of petroleum products, just like we've doing for decades. This increased demand drives prices up, and they aren't going to go back to the way they were before just because it hurts out wallets less.

No, they will not go as low as they were. It will never happen. If anything, expect them to continue to increase a bit more over the next couple of years.

Answer 6

Sorry, Mandy, but it's highly unlikely gasoline prices will drop below 2.00/gallon given today's conditions.  I've said since Katrina that $2/gallon is a historical price we'll not likely see again.

OPEC as a vested interest in keeping crude prices elevated, though most of them would admit they feel prices are too high right now, which is why they're not limiting production.  Oil is a limited resource and once it's gone, these countries whose economy is based on oil production will have no alternative industry and will need the profit from oil sales to find alternative industries.  

As for US gasoline, the current economic conditions lean towards an equilibrium price of about $2.75 gallon.  At this price, consumers want as much as producers are willing to make, as long as crude prices allow.  If prices drop below that, producers will not make enough to keep up production and supplies will drop, forcing prices higher.  Once the economy stabilizes and the dollar regains value versus global currencies, we'll see a drop in crude prices and subsequently, gasoline.  

The geopolitical tensions in the world are also creating risk, which is inflating the cost of crude, because investors worry that supplies could evaporate as nations go to war.  Prior to the attacks on Iraq and Afghanistan, we were expreiencing some of the cheapest gasoline prices in decades, thanks to a strong dollar and relatively peaceful nations.  Adjusted for inflation, we were paying less for gasoline than we'd paid since the 60's.  

Keep in mind, inflation causes all prices to rise.  That price includes the price for our time.  I've seen a 200% increase in my salary since 1994 and prices for everyday items have increased as well.  The average new car was about 15K, now it's about 30, a 100% increase.  Milk was 1.50/gallon, now it's almost 4/gallon, a 150% increase.  Prices rise and our wages rise as well.  The trick is to at least keep pace with inflation.

Answer 7

yes , when pigs fly !

Answer 8

Never again, the Saudis have us over a barrow, and they can charge as much as they want per barrow of crude, we could drill here in the USA, but our government will not allow it, they are talking out of both side of their mouths.

Answer 9

Prices go up on everything. Never down. The price of gas has been going up since man started driving. It's one of those facts of life. Get used to it.

Answer 10

When the liberals and their whiny greenies get out of the way and let us get our OWN oil from all our own vast reserves.

We won't be hindered by the elitist liberals who have speculated the oil price up in the commodity market and trashed the dollar in the money markets.

Answer 11

Now don't quote me on this, but as much as I don't want to say it. Gas will probably not go down. And for this reason I can only think of. Over in Europe, and a few other countries, they've been paying 4 bucks a gallon for years now. Long before we ever hit 1.50, they were paying close to four bucks. Everywere else has been paying what we are now. So you can just look at it as we're just now catching up to what everyone else has been paying for gas. It'll probably stay around 3.70-3.90 to 4 bucks a gallon.

Answer 12

Until more refineries are built, it won't be back below $2.00. Man, I remember when gas was .89. h**l, if it were 2 buck again, I wouldn't complain. I remember when everyone thought that was alot.

Answer 13

There are many reasons why gas is expensive, they all relate to the price of oil and our ability to refine oil into gasoline.  The easy answer is that oil is a limited resource and more and more people and countries are relying on it for a source of power.  More people need oil, and it is being consumed faster every day, putting a strain on the refineries and the oil supply.



You will never see gas below $2/gal again and it seems unlikely that it will drop below $3 again.  

Oil is a limited resource and as we consume it only becomes more rare and thus more valuable.  So unless, by some miracle, a large supply is suddenly discovered the price will only go up.  Even if a new supply were found you would still have to wait several years for it to be tapped into and for refineries to be built to turn it into gasoline.  The only immediate relief from high gas prices would be to drive less.

Answer 14

Yes and no. The graph below shows price increases and decreases. However, ever rising inflation will keep prices high. Keep in mind a large, solid chocolate bunny used to cost 5 cents. Relative to inflation, the price will go down if international relations improve, new sources of fuel are found, or demand for fuel drops.

As for bio-fuel, the cost of fuel may go down, but the cost of corn will skyrocket. It's a fair trade-off since the fuel cost affects every other industry.

One way for fuel cost to go down is a economic collapse, which might happen if it doesn't go down on it's own. The oil industry is bleeding the economy dry, forcing other industries to increase costs while trying to maintain price.

As their profits deplete and individual disposable income drops, the economy will crash. The economy is like a shark; it has to keep money moving to keep alive.