Why exactly are gas prices so high?

Question

I just got my license 2 weeks ago and the prices are rediculous.

Explain to me why?

Answer 1

increased demand drives up prices

Answer 2

Increased demand from places like India and China, oil speculators, the drop in the value of the Dollar. There are alot of factors that go into it actually. It's not one cause.

Answer 3

Supply and demand ( especially from emerging economies in China and India ), oil prices being driven up by speculators...

Answer 4

greedy arabs & greedy governments.

Answer 5

china is putting 25,000 new cars on the road every day...India not far behind,,,,..drilling has almost remained the same for last ten years while demand is up 25 %..

Answer 6

Well first of all we are so "ecology driven" that we don't allow any drilling of oil in US or posessions! We don't allow oil drilling platforms 20 miles out from coast, -- (but it is ok for Chinese to do it) -- (and get the oil)!!  WE haven't allowed refineries to be built since around late 60s. And if Nancy Pelosi and her group prevail, we will not change in future!

Now that sort of takes care of "home supply and demand"!

Since we have to import so much crude oil, - the "oil cartel" has us "over the barrel", and they are "stroking us" real good!I know oil comapnies are getting it in the neck, (and since they work on percantege basis),- they are making lots of money, --but prices drive the profit margin just as it did when I was driving my first car on 16 cent gas!  But the speculators are the ones causing the most problems!  Did you know that if you go to Galveston, you will find all the storage facilities are full up, and refusing tankers, - so they must go elsewhere to unload?  The speculators are holding all this oil back waiting for prices to raise so that they can make profit! The only thing I can do now is work on developing ways to double or triple gas mileage, - which I am indeed working on right now! So When I get prototype on road, at least I and a few of my friends and customers will be driving much cheaper anyway! In a small way this will decease demand!

Did you also know that if all this oil was "dumped on market" today, the price would still remain high, as we have so few refineries, that they can barely keep up with demand? Did you also know that while no refineries have been built for some time, -- in that same time the demand for fuel has increased around four-fold?  Remember what happened to price of gas when that refinery in south east US was damaged by Catrina?... Price spiked immediately, as demand "outran" supply!

The rest is good,-- and bad news! If we drill here and get oil here, and put up refineries to handle it all, - in about 10 years it will proably go back down to more resaonable level! .. Hey that was the "good news", -- the bad news is if we keep going the way we have it will be $12 a gallon by them!

I'm going to die pretty soon, so the problem is now yours not mine!... I have fought against this and voted against candidates that wanted to do this all my life. Now it is your turn to get off your butt, and vote (every time) for repeal of this stuff, (a "change" isn't going to do it), unless the people force the change,-- politics is going to continue to promote politics, -- which in end only helps politicians!  They are supposed to represent us, -- if they don't vote them out!

By the way folks, - neither Obama Or McCain will go for drilling oil, they are politicians, and sample the air daily to see what public opinoin is to decide what to do! You are going to have to be forced to change, -- and for the guy that said the price went up when Bush took office,( he's just the "sap" that is there at the time) -- well lets go back a litle further!--- I rember when gas went up from 18 cents a gallon to 30 cents a gallon when JFK became president! I believe that is near a 90& incease is it not?  And as I heard, he was a Democrat!  This is not only a political party thing! And I believe if Obama gets elected, prices will remain high - or increase as well! The saying  "If you keep doing the same old thing you get the same old results" applys here! This is much bigger than ploitics!

Better yet let us not forget that FDR put us on rationing, - most people were allowed to buy 5 gallons a week (and e could not buy the 12 cent gas), -- this would work now too! Every body would walk everywhere just like they did then!  Oh by the way Willard Chamberlain made a treaty with Germany (giving them Poland and Ronania)  a couple years earlier- in order to have "peace in our time"!

Answer 7

I don't think they're that high. I think in the past, they have been too low. Who says oil is ordained to be inexpensive. Time to stop driving SUVs with one person to Stabucks. No more Hummers with 2 people going to dinner. Thos days is over baby! Good riddance!

Answer 8

supply and demand

Answer 9

Two words, GEORGE BUSH!!!

Answer 10

Gas prices aren't high, we are paying exactly what the market price for gasoline is. In 20 years gas will be going for 18 dollars a gallon. We only think it is high because we are spoiled by undervalued gas to support the auto industry.

Answer 11

Honestly. I work for a natural gas and oil manufacturer company. I'll put it as simple as possible.

The saudi Arabia guys are only pulling out so much oil so fast. Not because they are doing all they can, they are going slow on purpose, because that raises the supply and demand. Which means higher prices. We asked them to pump more faster, but they refuse too.

So why dont we pump our own? The Democrats in congress wont let us drill and pump our own here in the united states. They are blocking a bill that bush reinstated last week. They just want us to take it out of the emergency barrels that we have. Which The republicans want to keep for a real emergency... Like if we were attacked or just completely cut off. "which they are right, because the emergency barrels will only last a year and a half at most." So depending on who you vote for will determine the gas prices. Barack Obama will not let us drill for our own oil.... because of enviroment reason. So prices will keep getting higher. McCain will drill for oil in the U.S. , So the price of Gas would then go down. I say vote McCain.

Answer 12

to contradict what the guy said about Democrats its only weird we had normal prices till the day bush got in the wight house since then they have steadily increased if McCain gets in you wont see any change in the prices as far as Congress not opening the rest of the off shore drilling why don't they use more of what they can already have to drill the area they can drill is not exhausted they have a large amount that they can drill still so they can talk about opening these areas when those are exhausted but there will be no change in the pumps as long as a republican is in office

PS i was wanting Clinton but Oboma is good too and i have always hated Bush and never voted for him and proud that my state didn't either and remember back in the 90's when the government was shut down McCain was head of that i see everyone forgets that