who is controling the fuel price in the world market and is that the fossil fuel in the earth is running out of supply and make the market's demands going higher?
2006-06-09 17:57:15 · 11 answers · asked by nick 1 in News & Events ➔ Current Events
cause Bush won't let us use too much bio-fuel, cause like he said...we gotta eat some of the corn too! where was his speech writer then?
2006-06-09 18:03:03 · answer #1 · answered by stacey 5 · 0⤊ 0⤋
Basically the reason fuel costs to the consumer keeps rising is G R E E D ! The oil producers and refineries are posting record breaking profits. If you pay attention to vehicle traffic patterns, flight schedules and fuel consumption by industrial users, you'll see there has been no reduction in the amount of fuel available to keep them going, therefore there is no shortage of fuel. If there was a shortage, you'd see less cars , trucks and buses on the highways, right? Airlines would cut flights, and trains would add cars to carry a higher demand in public transportation. That hasn't happened.
Why does a gallon of gasoline cost $5.00 - $6.00 in Europe and only $3.00 the US? The cost of producing gasoline is the same in both places, and it cost less to ship raw oil from Saudia Arabia to Germany than it does to ship it to Califiornia. Taxes!!! Profits !!!
All countries have governmental controls on the price of fuels, some have very high subsidies while others have very high taxes. European countries have the highest taxes, and the Middle Eastern countries have the highest subsidies. The rest of the world fall somehere in between.
Demand is definately a factor. China has become a huge factor and will continue to keep intensifing the demand because it is the fastest growing ecomomy in the world. Demand has nothing to do with a shortage, it just means gasoline is more valuable and if you don't pay the higher price, someone else will.
2006-06-09 19:01:28 · answer #2 · answered by tee_nong_noy 3 · 0⤊ 0⤋
Taxes are the biggest factor in the price of fuel.
Government regulation also add on a high cost.
Then there are the insane terrorist who want to prevent free trade by blowing themselves up for their fantasy virgins. Lastly it is hard work drilling for oil and delivering it to market. A better question is why do we buy bottled water at 1 dollar for 12 ounces when it's no better for us than tap water. Why do we buy huge gas guzzling SUV's when we could be driving efficient cars or using mass transit. Anyways fossil fuels are a long way from running out don't believe the hype.
2006-06-09 18:02:07 · answer #3 · answered by supermontage1975 3 · 0⤊ 0⤋
Supply and Demand, it is a basic economic principal. There is a finite supply of fuel and the demand for that supply is great, so the fuel goes to the person willing to pay the higher price
2006-06-09 18:00:13 · answer #4 · answered by Snap 4 · 0⤊ 0⤋
Good question, you would think that fuel prices would have gone down because we were supposed to be "rolling in oil" after Bush promised that the Iraqi oil fields would be used to pay for the war.
2006-06-09 18:53:33 · answer #5 · answered by professionalfemale01 3 · 0⤊ 0⤋
i think because people think that we are going to run out of oil, so that is why the price is so high. the world is really not running out of oil, there is tons of oil that is in the dirt, etc, but free flowing oil is running out
2006-06-09 18:02:31 · answer #6 · answered by calgirl22 2 · 0⤊ 0⤋
The oil companies are gouging us big time.
2006-06-15 17:56:35 · answer #7 · answered by Jay 5 · 0⤊ 0⤋
Because whee ruining out of it
2006-06-09 18:01:09 · answer #8 · answered by Anonymous · 0⤊ 0⤋
somebody wnts to make money at u r expense.
2006-06-09 18:01:58 · answer #9 · answered by gentileworld 3 · 0⤊ 0⤋
You are controlling it; you keep buying it.
2006-06-09 18:43:45 · answer #10 · answered by Anonymous · 0⤊ 0⤋