Why exactly are petrol prices rising?

Question

I need a more detailed answer other than supply and demand,cheers!

Answer 1

because it aint that easy to get petrol so they have to raise the money so they can buy more it's because of the goverment

Answer 2

opec hard production year, oil speculation, lowering oil deposits

Answer 3

Bush is helping out his old oil buddies, and himself

Answer 4

The truth is it is exactly supply and demand. It is running out and the cost trend must be upwards.

One thing that has emerged is that stockpiles are much tighter than they used to be. In the old days any disruption like a war somewhere or a refinery fire wouldn't have too much effect because there were always reserves to smooth things out. Now that reserves are much lower to save on storage costs there is very little safety margin. So any disruption has a big effect.

Answer 5

First things first, speculation is not why petrol is so expensive, the futures these speculators have are not real barrels of oil, they are paper barrels, that exist only on a piece of paper.  Now I guess if someone expected the price of oil to skyrocket, they could buy oil futures and hoard oil for a long time, but that doesn't happen.  The speculators sell their oil contracts before they expire and make a profit, but they do not affect the price of any barrel of oil.  The answer lies in supply and demand, but mostly supply.  The companies who suck the stuff out of the ground have been lazy about increasing production, for a few reasons.  It is expensive, it takes time, and did I mention it is really really expensive to go find new oil fields and begin pumping?  Another problem is that many governments (especially in developing countries) subsidize petrol, so the consumers never see a price increase, and they keep demanding more of the stuff.  In countries without gas subsidies, demand has been decreasing, but it is only starting to offset the outrageous demand from countries with gas subsidies.  Given enough time everything will balance out, but sadly the answer you are looking for lies in supply and demand.  Hope that helped.  

Answer 6

1) devaluation of American currency and price reports in US dollars

2) US mortgage crisis drove money out of financial markets and into commodity speculation. Spot prices on oil are not like spot prices on other commodities because oil can be used to hedge funds.

Other commodities expire if they are not sold. Oil can be hoarded.

3) Speculation on the effects of war and on restricted supplies.

4) increasing demand from Asia and no new resources along with revised (downward) estimates of reserves in the middle east.

Answer 7

cos all governments outside europe r robbing, cheating, lying b******s. that help?

Answer 8

The basis of this is supply and demand, but your question deserves a more detailed answer.

Demand is now increasing due to emerging economies such as China and India now demanding more gas and oil to supplement economic growth. You can study the link below if you want, which explains how the growth of China's economy is impinging on these types of resources. Hope this helps.

Answer 9

Bush killed iraqes,  now they angry so they pump up petrol price.

economic side....supply is decreasing and demand is rising due to increase of population.

Answer 10

but the answer is hidden in demand and supply only....there is a dearth of petrol, since its not available just about anywhere..most of all its not abundant coz being a natural resource its being fast consumed creating a scarcity...google for further ideas