Why did the petrol price go up?

Question

Why did the petrol price go up?

Answer 1

Greed, is my humble opinion, and the devastation in Iraq, has greatly destabilized the whole region.

I don't believe its difficulty or lack of oil. But I do believe it's good, in a way, because only now will we all stand together to fight for another alternative fuel, or energy source. It has to hit the pocket book.

Answer 2

Because the dollar value came down

Answer 3

Petrol is derived from oil.  

Much of the world's oil comes from the middle east.  When there is conflict in the middle east, the supply is threatened, and prices rise.  (Thank you for the conflict, George Bush.)

Demand for oil in developing nations such as China and India has raised significantly.  Much of this is due to the fact that China and India are producing so many more goods.  The reason they're producing more goods is because they have cheap labor and therefore the products cost less.  Other nations buy these affordable products, because people always want to pay the lowest price.  Hey, people are greedy.  As a result, demand for energy to produce these products in these nations requires energy.  Price is a function of supply and demand.  If the demand goes up and the supply stays the same, the price will rise.  This has happened on a global scale.

If you live in the United States, prices are even worse because oil is priced in dollars.  Because the United States is currently gripped by a credit crisis, Americans cannot afford anything.  Without spending, the economy slows.  To promote growth, interest rates have been lowered.  However, low interest rates also bring inlfation.  Inflation weakens the dollar.  Because oil is priced in dollars, it becomes cheaper for other countries to buy, and more expensive, relatively, for Americans to buy.  Americans have been used to cheap oil for decades.  As a result, the American economy depends on cheap oil.  Mass transit is minimal, and most people drive long distances to work in large vehicles.  Because no decent mass transit exists, workers must continue to drive their inefficient vehicles.  They are forced to buy gasoline, rather than other items that make the economy grow.  With fewer spare money, they spend less and the economy shrinks further.  With reduced spending, tax revenue is reduced.  Cities are unable to expand their mass transit services.

The economy collapses, and mayhem ensues.  It is going to get really ugly.

Answer 4

To make a new topic to go ahead with.

Answer 5

cuz ppl know the prices are going up and they buy lots of stocks and the price go up

but more importantly b/c there's a shortage b/c of the oil platforms destroyed in the tsumami a few years ago