If the Economy is down and major coporations are downsizing, then why are gas prices going up?

Answer 1

#1. Countries like China are becoming stronger economicly and sucking up more of the worlds oil than before. This forces the US to buy oil at a higher price now that China is willing too.

#2. Ever notice how gas stations near airports, theme parks and freeways are generally higher priced than gas stations futher from such locations? Just as the gas stations know, the oil companies know that people will take it in the *** at the pump and not do anything about it. What can you do? Until gas prices start really hurting the prices of other goods to the point of killing other business's no one will do anything. For instance gas prices have increase the price air fares but not to the point where people still don't fly often.








Hurricanes:

This is more panic than anything else. Yes Hurricanes do hurt areas of the South, but overall they just panic the market which allows the oil companies to drive up the price.


OPEC:


It's been awhile since Opec had any control over the market. They are not the only supplier after all.




government regulation:


Oh, like the ******* gas tax? I have yet to see the government not make things worse when they get their hands in. The only way gas prices will drop is if the market dies too. Example if Ethinol really becomes a soild source of mass production fuel and the hybrid tech evolves further. NEVER trust the government to do what the market will.

Answer 2

Supply and demand is what determines pricing. Though price fixing, monopolies and virtual monopolies influence pricing pressures by fix prices for items that are a necessity. For example, if a group of corporations owned all the air that we breath what would stop them from charging us what ever they wish since we must have air? Are you going to stop buying air? This is why some industries need government regulation. It’s not as though we can stop buying air or fuel for that matter. Basically they are extracting the wealth out of our nation and the individuals who depend on this commodity. It’s greed and greed is a sin.

This may be the beginning of a very interesting period in our society.

Answer 3

Because it is such high demand. And because of that, crude oil is spiking, making us pay our life savings just to get from point A to point B. I wish it would down to what it was before the hurricanes and then the economy: $2:19 here in Waco, Texas.

Answer 4

Gas prices are not controlled on the domestic level (USA), but rather what OPEC determines as the cost per barrel of gasoline. So you are correct when you say gas prices are not helping the economy.

Answer 5

Keep the rich richer and the Po' poorer

Answer 6

Limited supply and unlimited demand.

Answer 7

corrupted Ceo of oil corporation made it go up!