Why is gas so much money?

Question

Last year it was at gettin' to $3.00 now it almost at $4.00.And it's summer,no one wants to walk or ride a bike to their destination.

Answer 1

Supply and demand wants to lower the demand. It's lowered but they are afraid to go back or want money. Also its the high end gas station companies. I hate them lol

Answer 2

Because the government likes taking money out of people's pockets.

Answer 3

The dollar is the main culprit.  In terms of dollars oil went up 350% from 2000-2007.  In terms of euros oil went up 200% from 2000-2007.  In terms of gold the price has been very stable.

Speculation is commonly blamed but rarely is it explained why it is to blame.  Of all the explanations I've heard none of them make any sense which leads me to believe it's bogus.

Answer 4

Its increased demand plus the cost of gas additives that are supposed to make fuel burn cleaner. Gas taxes also play a big part too. I just asked how much people are paying for gas in other parts of the country and gas seems to cost the most on the west coast and northeast, all areas that have relatively high gas taxes and stricter emissions standards.

I live in Huntsville, Alabama and I just paid $3.85 for a gallon of regular. I'm a homemaker and I live within a 4 mile radius of pretty much everywhere I would need to go on a regular basis so I only drive about 15 - 20 miles a week. My ancient Pontiac gets an average of 30 MPG so I'm not feeling the price increase that much. My husband is a software engineer for a company about a five mile drive from our home and rides a motorcycle to work. He only uses about a gallon of gas a week. When I do our monthly budget, I don't even bother to make a separate category for gas because we spend so little on it.

We actually just moved from northern Delaware because the cost of housing is much cheaper down here. An unexpected byproduct of the move is the cheaper gas costs. We live in a pretty high end area now and pay less in rent for a 900 square foot condo here than we did for a 350 square foot efficiency in a low-end neighborhood in Delaware. We also spent insane amounts of money on gas because you had to sit in total gridlock to get anywhere.

The way the economy is right now, people need to seriously examine their lifestyles if they want to survive this. Is a career change in order? Can you cut back on certain expenditures? Can you move to an area with a cheaper cost of living or better job opportunities? Do you really need that brand new car? I've seen Suze Orman tell people this tons of times and it probably doesn't sink in to 75% of the people watching her on TV. I really never needed to hear all that from her because that's the way I was raised anyway.

Forget gas prices America, its time to get creative and get our financial lives back in order.

Answer 5

WALL STREET

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Initially the prices of oil started going up because of

(1) increased summer demand

(2) weak economy / weak dollar

But most of recent oil price rise (from about $100 - $140) are all due to WALL STREET SPECULATORS (wall street greed).

Good Luck...

Answer 6

Because everybody is greedy, not only oil companies but also sale tax taken by government.  two or three years ago, in California, annual revenue from the gasoline sale tax ,  2 billions dollars , now CA gov getting about 6 billions dollars from it.  They don't even think about lower the sale tax for the people who drive daily.