Why do we have High Gas prices?

Question

I remmember when i was a kid in 1996 gas costed $1.85 -$2.15 per gallon, What happened? Is this hike normal. Does it increase every few years ?

Answer 1

who knows ask the president

Answer 2

Do they not teach Supply/Demand theory in school these days?  Gas prices are high because global demand for oil (the stuff gas is made from) costs more in 2008 than it did back in 1996. In the last 10-20/yrs there has been an economy explosion in the developing world. They are shifting from Socialist economies to market economies. As such, they are becoming richer. And as those people who once lived in mud huts and rode bicycles, they now have Condos in Skyscrapers and drive BMWs.. Thus increasing their demand for energy.

And as the old supply-demand theory goes, when demand exceeds supply, prices rise. When supply exceeds demand (like in 1996) prices fall.

Get used to the new world order kid. The good ole days of cheap gas are gone. If you want to get somewhere in a vehicle powered by gasoline, you are gonna pay for it. Because if you are unwilling to pay, some fresh young kid in China or India with money in their pocket will pay.

Answer 3

Ah those were the nice days.  I still remember when I thought 3 bucks a gallon was expensive LOL, now look at what prices are- $3 would be great...

Anyway, onto your wonder about gas prices.  I wondered about that too.  But I heard and read about the causes of the gas prices increasing.  

One cause is that the oil supply isn't big.  there isn't much oil, so the less supply there is, the higher prices are.

here is something that would help:

Demand goes up-> Price goes up

Supply goes up-> Price goes down

Supply goes down -> Price goes up

Demand goes down-> Price goes down.

Alrighty we already went through the first step- oil supply going down therefore price goes up.  There are also reasons with demand.

Demand is a big reason why gas prices are high.  Demand for gas has risen in China.  Due to growing population and a bigger economy (which is getting larger), there is a bigger demand for gas.  Also, in India there is also much demand for gas. (high increases).

So there is high demand and therefore higher prices.

Also, the Bush foreign policy has caused gas prices to go up too.  Because he started two wars (one of which is supported widely, but has had more problems lately), there was much unease in the Middle East.  The Iraq war has been a mess and many problems have happened as a result.  Only recently have things improved and security gotten better.  But yeah the Iraq war and the war in Afghanistan has had uneasy tensions.  In addition, there is also the war in Afghanistan.  Also, Bush has had many tension-filled policies in the Middle East, and they have raised uneasieness there esp with how things with Iran are.  So that's why gas prices are high.  When there is tension, gas prices are high [not as much incentive to drill more oil so supply decreases).

We also have way too much dependent on foreign oil. ^^;

Answer 4

I read that 75% of what we pay is fuel tax & vat. It's an absolute joke. So at the current cost of unleaded in England (about £1.20) 90p is fuel tax & vat.

If you are in the same position I was in, where I was struggling to afford the petrol prices and began walking & using more public transport, I HIGHLY recommend http://www.platinum-reviews.com/water4ga...

I can now use my car to get around again, without struggling to afford petrol prices as it has cut what I used to spend on petrol each month by half! Don't know what I'd do without it

Answer 5

who knows

Answer 6

High gas prices come from OPEC countries, the countries that produce oil, upping there prices and they have tightened there supply of oil to the rest of the world. The reason they have done this is that they have understood that oil is a primary commodity that people need. So they can lift there prices at watever and people will buy it. The reason they have tightened there taps is that oil is running out. They have also tightned there taps with the U.S becuase of the U.S's relationship with Israel.

Now because of this what happense is that the American governent controls the price of oil. So since there is a short supply of oil because of the reasons of the reasons. The American goverment has to lift the price so they can still make a profit that they are making in the oil and even get higher profits. Tae a company like Exxon. They dont get oil from the middle east. They get there own and produce and sell it by themselves. So what they do is they sell oil to you at the high prices that AMerican government set and make huge profits