Why fuel price is going high?give me the reason?

Question

Why fuel price is going high?give me the reason?

Answer 1

Every penny that the fuel suppliers who source, process and deliver the oil get the Goverment get four pence in tax.

Go Figure!

Answer 2

That is the million dollar question that no one can answer. Well maybe there is someone that can answer the question but no one can stop the price from going higher.

Answer 3

Well the fundamental reason is supply and demand.  The demand for oil is going up and the supply is not keeping up.  Many of the government run oil industries, as in Mexico, Venezuela, and Russia the oil production is decreasing.  Because in those systems the profit incentive has been eliminated and the profits are being re-invested based on government priorities instead of increasing production.

On the demand side you have the growing economies of China and India both of whom have been subsidizing the cost of fuel further increasing their demand for fuel.

The problem is compounded by the decrease in the value of US currency.   The bailout of financial institutions suffering under the mortgage loan crisis involved lowering interest rates which lowered the value of the dollar, making all commodities more expensive including oil.

Answer 4

to line the pockets of CEO prickels in the gas and oil industry

Answer 5

Speculation - people are buying up oil futures because they think the price of oil will skyrocket as stores are depleted. As a result, the current prices are rising because there's more demand. This is exacerbated by increasing industrialization and thus demand from China and other countries.

Then prices aren't leveling off because consumption isn't dropping, and so there's no incentive for the gas stations to drop prices. Why sell a gallon at $2 again when people will buy just as much at $4?

Answer 6

People use up fuel a lot faster than this planet producing it

Answer 7

Several reasons. In the US, part of the reason is the weakened dollar, everything we import costs more than it did just a few months ago. The world consumes as much petroleum as it uses so the balance between supply and demand is very tight, any increase in demand has to bid up the price to get part of that supply. That leads to part of the third cause, major users of oil and fuel derived from oil such as airlines, buy futures to protect themselves in case prices spike upwards. That's what they call speculation, some of that is also done to make a profit by private individuals but most of it is supposedly done by those who actually use that fuel.

Without an increased source of fuels such as from more drilling in the US or processing tar sands/oil shale or the development and use of alternative fuels, the price will continue to go up. Any interruption or threat to those supplies, such as domestic unrest in a producing country or a hurricane can cause the price to jump up overnight. Which is why being dependent on foreign oil is stupid, dangerous and could bring our economy to a halt almost overnight.

Answer 8

Because of d**n speculators d**n seculators there are abundant supply of oil in earth and it will last for 100 years...

Answer 9

The Left is propagating Global Warming to drive it even higher.