Why is gas price (petrol price) increasing so much ?

Question

Is it shortage at source, due to increased consumption in india and china or future trading ?

Answer 1

Simply put demand overtakes supply.40-60%of supply controlled by OPCE.They want more money for(as much possible) their crude.so they are not ready to increase supply.They want to suck more money from the whole world.most of the oil companies in OPEC is owned by US. now u know who is benifitted from this.

Answer 2

ya u r right due to shortage

Answer 3

George Bush is increasing the price ...

Answer 4

There are several other basic and temporary issues that have affected the oil prices. The elements that have the basic role in the oil prices are:

1- The increase in the pattern of oil demand in the USA following a comparative economic recovery in some industries has affected the oil prices. The more extensive economic recovery in the USA, and its impact on the economy of many other countries of the world, will add to the demand for oil and if the supply side does not provide additional sources, in a considerable way, the prices will stay high or go even a little higher.

2- Increase of the economic growth and industrialization in many countries of the world has a direct impact on the demand for oil. The new industries all over the world call for more energy.

3- The Considerable economic growth of several Asian countries, especially India and China, are a major part of the price hike story. These two countries are home to 2.5 billion parsons. Their industries are thirsty for energy. In recent years, the Chinese have converted many of their coal based industries into oil based ones and this has added to the increase in the demand for oil in China. Only in the last one year 36% is added to the Chinese oil imports and the China is now the second biggest oil importer in the world. The rapid expansion of the Chinese market is so considerable that even the American refineries prefer to sell their products in China, which has led partly to the increase of the gasoline and gas prices in the USA. Outsourcing, or the policy of sending the economic operations out of the original country, especially in the case of the USA, has helped the economic growth of the India and China. The new members are getting added to the receiving side of the outsourcing, and especially Vietnam, Cambodia and Laos are in the line.

4- The situation of Iraq in general has special importance. The Situation of Iraq is in fact source of many concerns for the oil market

http://www.indiastudychannel.com/forum/1...

Answer 5

hi

good morning

it is monopoly one, second no body is trying for solar, electric, agricultural fuel, air, water energy. to day it is high price tomorrow oil will not available at all.

What will happen?

Government must go for R & D and go for alternative.

Answer 6

Here are some of the reasons for the hike in oil prices.

RISING DEMAND,

LOW STOCKS,

VIOLENCE IN THE MIDDLE EAST(One of the main reasons)

The world's major oil consumers remain dependent on the Middle East for their oil. Recent violence in Iraq and Saudi Arabia has  raised fears about an interruption to supplies.

Iraqi exports have been cut by sabotage attacks on oil facilities. The reduction in supplies has been relatively modest but it has caused some doubts about Iraq's longer term prospects of becoming a large and stable oil exporter.

Attacks on foreign workers in Saudi Arabia by Al-Qaeda-inspired militants have also increased tensions.

Any substantial attack on Saudi oil facilities would be a major event for world oil markets. The country is the world's biggest oil producer and, by far, the biggest exporter.

OTHER POLITICAL TENSION

Analysts also view political tension in non-Middle East states Nigeria and Venezuela as having the potential to disrupt exports and drive up world prices.

And there have been worries that a dispute between Russia's government and the country's biggest oil company, Yukos, will lead to the shutdown of a good deal of Russia's production.

Yukos pumps a fifth of Russia's approximate 8.5 million barrel a day output but faces bankruptcy and/or dismantling over huge government demands for back-taxes.

Answer 7

It's all GAS.