Why do we pay $4+ for a gallon of gas??

Question

Here is a question. Why do republicans say that the world oil supplies is the reason we're paying $4+ for a gallon of gas? Why don't they admit the oil companies (their buddies) are just raping the American people, and sucking them dry?

Here just a few of yesterdays gas prices world wide. Prices are per gallon of regular gas.

Venezuela: $0.14 (yes, that's fourteen cents)

Azerbaijan: $1.15

Russia: $1.45

China: $1.54

Thailand: $1.60

Answer 1

Go to google, type in: Does (name of country) subsidize gas.  All on your list have government subsidies.

fs

Answer 2

Because of our president

Answer 3

because we are stupid americans that are to lazy to walk anywhere

GOD BLESS AMERICA !!!!!

Answer 4

The first, fourth, and fifth are socialist countries that fix the price of gas and diesel and make the oil companies pick up the slack. Russia and Azerbaijan just have a ton of oil, and a large refining capacity I would guess.

Part if the worldwide supply-demand problem are the countries that set a price ceiling are usually developing at a fast rate. The problem with setting a price ceiling here is that we don't have superfluous supply that can be pumped into the system willy-nilly. A price ceiling here would do exactly what it did in the 70's; create a gas shortage.

The top five oil companies make about 4¢ on every gallon sold of their product. That's not a big margin. They truly are a huge industry that simply produces huge profits. I was young, but I don't exactly remember anyone wanting to come to the aid of the oil companies in the 80's when things weren't going good for them.

Bush didn't raise the gas prices, he's not making the oil companies gouge us because he has a major stake in them, and there's nothing the government can do to directly affect the price of gas short of reducing the taxes on them.

The high gas prices are caused by supply and demand, OPEC limiting supply, the Federal Reserve creating inflation to deal with bubbles they created thus destroying the value of the dollar, Democrats for not letting us drill here, Republicans for multiple wars that have destabilized the Middle East, fuel hungry Americans buying large SUVs, China and India developing at a rapid rate, futures speculators, no new refineries being built since the 70's, the general public being too incompetent to realize the benefits and safety of nuclear power, people being unable to accept the idea of alternative fuels like compressed natural gas and clean diesel, lack of coal-to-liquid fuel, overfilling of the strategic petroleum reserves, Clinton's blocking of drilling in Alaska, and natural disasters.

The whole refining problem also has to do with the quality of the oil. Light, "sweet" oil is easier to refine than cheaper, more abundant Heavy, "sour" oil. Most known sources of sweet crude are dwindling rapidly, leaving only the difficult to refine sour crude.

The argument about the oil company tax subsidies is such a nonsensical argument. If people think that taking away tax subsidies is going to lower prices for consumers then they needs to go back to college and take a couple of economic courses.

The oil companies aren't making out like bandits like everyone seems to think they are. It's also important to realize that only about 1% of domestic oil company stock is owned by their rich CEOs. Roughly 50% of domestic oil companies stock is owned by individual investors (i.e., people like me who invest on Scottrade because we know the government isn't going to take care of our retirement, nor do we want it to). The other roughly 40% of oil stock in America resides in 401(k)s and pension funds. These are the same 401(k)s and pensions that millions and millions of Americans are relying on for their retirement, including teachers, firemen, and police officers.

Taking away from oil companies' bottom lines will drive gas prices up and drive their stock prices down, along with million of American's retirements. If one was twisted enough one might conclude that Barack Obama and the current democratic congress is wanting to make people more reliant on government help by reducing peoples' individual retirements. I don't buy into this, but I've heard people say similar things.

Anywho, it's a horrible plan to tax "windfall profits" and to institute price controls.

And I think most importantly, taxing what people deem "excessive profits" goes against everything America was created for. It's just plain un-American.

In socialist-Europe it may be okay for the governments to dictate what a "reasonable profit" for companies to make is, but America was founded by brilliant men on capitalist principles. Windfall profit taxes are un-American.

I'd say our best way our of this mess is to finish up in the Middle East, get our troops out, get on a balanced budget which will make the dollar skyrocket in value, get aggressive in paying off the country's debt, let oil companies start drilling off the coasts (where China is making itself right at home, drilling for our oil for their country, even though environmentalists and the collective left won't let us drill there), drill in barren parts of the ANWR, invest heavily into alternative to gas, such as sugarcane-based ethanol (NOT corn-based!), compressed natural gas vehicles, and clean diesel through government subsidies, and by electing a president who won't tax the middle class into oblivion by increasing the capital gains tax on general principle (Obama).

Hope this helps.

Answer 5

Because George Bush got the yellow pages and called every gas station in the US and told them to raise their prices

Answer 6

Because the fuel prices are subsidized thru high rates of taxation on the people.  Fuel costs what it costs, regardless of how governments try to adjust the numbers.

Answer 7

because we need the gas and theyve got it.

they are our only source so they can raise prices if they want. if we had elsewere to go, then thered be comptetion and theyd HAVE to lower prices. but they dont.

maybe instead you should be asking 'why dont we make more effiecient cars?' japan's AVERAGE miles to the gallon are like, 70. china is about 50. and america? 15 or 20.

we've got the technology. but that would put the oil companies into bankrupt, right?

let me ask you this: wats teh point of making billions of dollars if sooner or later you have no earth to MAKE the money with?

why dont they invest instead in making new things, because then if the gas is cheaper, people will buy the more efficient cars.

also, we have found that we could use hydrogen as a fuel source. it would be almost free to use. the problem? its flammable. but guess wat? the oil we use is actually MORE flammable than if we used hydrogen. the problem, again, is the oil companies would go bankrupt.

wat a strange world.

Answer 8

very good point last time i checked our president was an oil guy from texas

Answer 9

Why are we, in the UK paying £1,20 ($2 1/4) a Ltr?  Your lucky.

Answer 10

What?

Only $4 + per gallon?

While we up to our neck.

At 10.80 per gallon.

As oil producing country in control?

Without goods, expertise and services in oil and gas industry as major  global player or even in oil field equipments?

With two empty hands and two balls?

Luke 6.39-40,41-45,46-49

What do you think?

Answer 11

Taxes?

Not being able to drill for own oil?

Are the republicans also responsible for the cost of gas, usually areound $10 in Europe, which as been like that long before our price even hit $2?

Answer 12

We as Americans are being raped every time we go to the pumps.  We can't survive.  I should be able to take my family on a vacation without having to worry constantly about what the fuel is going to cost.  These prices aren't allowing us to live out the American dream! I work hard, pay taxes (no choice), and then I pay again at the grocery store, gas station, we are being brutally raped, and no one is paying for the crime!

Answer 13

In every country you listed, the government subsidizes the cost of gas.

They can afford to do this because very few of the people who live there can afford to own cars. This a handout for the rich.

But we live in the US, where the government charges us for gas. In Texas, federal and state taxes alone cost over $0.50 a gallon.

Answer 14

Because that's what you will pay.  The market price will continue to rise as long as you pay it.  Sorry to say you don't have much choice since America is built around the car.  In Europe if you choose to not use your car you can take excellent public transportation anywhere anytime,  or you can use your motor scooter since communities are close together and easy to get to.  In the city bicycle use is very prevalent, and of course since communities, and shopping is  walker friendly people often choose to walk .  This is uncommon in America except in the inner cities which to a large extent have been abandoned by the masses. So you will pay whatever the market will bear.

Answer 15

the main reason is the weakening US dollar

OPEC controls the price of oil, not US oil companies

Answer 16

I would be THRILLED to pay $4 at this point!  Yesterday, I paid $4.53, and that was at our favorite "cheap station".

Answer 17

Guess these countries made better financial dealings with the suppliers????  I have noidea anymore.  Go ask our CONGRESS

Answer 18

hmmm...

well i guess we should move to venezuela for good prices.

Answer 19

Subsidies: a big culprit in high gas prices

Gasoline would be cheaper if countries ended their oil subsidies and let markets rule.

from the June 11, 2008 edition

http://www.csmonitor.com/2008/0611/p08s0...

"In China, the government caps gas prices. Drivers there pay about half of what Americans pay. In many countries, oil prices are held artificially low, either by fiat or subsidy. The result? Consumption keeps rising, boosting global prices. The rest of the world – the part now racing to conserve – ends up paying more than it should.

Unfair?

Yes, say global actors such as the International Monetary Fund (IMF), which is calling on governments to let consumers face market prices in order to kick-start conservation and reduce official spending.

About half of humanity, from India to Chile, now benefits from cut-rate petroleum prices. In 2008, these countries will account for all the growth in world oil demand, or an additional one million barrels a day, according to Deutsche Bank. Their consumption will be the highest in eight years.

And these subsidies will cost as much as $100 billion in 2008, or twice as much as last year, estimates the International Energy Agency. That would be money better spent on reducing oil use – what's called "demand erosion" – than encouraging it..."

Answer 20

Because your lucky. Why don't you look up Australian petrol prices?

Answer 21

b/c we have a stupid republican in office, a war freak republican in the running, and republicans who don't want to drill in Alaska. I should just get a driller and start drilling myself. Go Obama!!! Lower these gas prices!

Answer 22

because when the dollar was founded it was based on a government promise and the ability to replace the money with it's value in gold. now the government is only backing it by a promise. (that's code for nothing) The price of oil keeps going up so the price of gas keeps going up. but the value of the dollar keeps going down. I have a simple solution. if you don't mind the smell of french fries, buy a deisel fueled car. most deisel fueled cars will run on used vegitable oil. my uncle gets used vegitable oil from mcdonalds so his car always smells like french fries but he saves lik $4000 a year so it's a plus.

Answer 23

I understand your concern, but your perspective is just a little "off" considering Germany is paying $8 per gallon - I'm sure there are other places in Europe that it's probably more expensive than that!

So paying $4 in the U.S. is horrible, but not as horrible as it could be!