This has been going on for years. Why ? Why does the government allow this to happen ? Why are we not charged the refinement cost associated with the gas we are purchasing now when it was refined years ago ?
2006-06-13 08:06:33 · 8 answers · asked by Anonymous in Politics & Government ➔ Law & Ethics
As you know, the cost of crude refineries pay is set across the board globally. Which in turn they charge the same price. It is mainly these franchise gas station compnaies that change the price, who are told to change the price as the market flucuates. Which in turn the station across the street wants to stay competitive by adjusting their price accordingly, up or down. It's all about the supply and demand now. The United States uses approx. 84 million barrels a day, when our supply is just 85 million.
Anyway, here is a good couple vids to watch.
2006-06-13 08:15:41 · answer #1 · answered by Eddie 2 · 1⤊ 0⤋
Fear. Supply and demand are only a small part of the equation. Oil is traded on what's called a "futures market." This means that everyone shares the risk, just in case there is a huge shortage that comes about all of the sudden. So, if people fear there being a shortage in the future, prices soar very quickly in order to cover everyone's asses.
2006-06-13 08:14:41 · answer #2 · answered by parthenophilast 2 · 0⤊ 0⤋
Gas prices are based on capitalism, as well as supply and demand. However, half the time I think the prices you are seeing are based on the trading that goes on throughout the day, with the trading of commodity futures.
2006-06-13 08:12:29 · answer #3 · answered by Garrett J 2 · 0⤊ 0⤋
It's because we're a "free market" economy. The prices are anticipatory and react to minute changes in the daily stock market.
2006-06-13 08:09:52 · answer #4 · answered by cyanne2ak 7 · 0⤊ 0⤋
It's all about supply and demand which changes daily in the marketplace. Sometimes I think it goes up because of shady dealings and greed as well ..Most of all..its political bureaucracy. ...but that's my point of view.
2006-06-13 08:12:41 · answer #5 · answered by MC_2005 1 · 0⤊ 0⤋
It's called Supply and Demand. Simple concept, look it up
2006-06-13 08:08:17 · answer #6 · answered by peter b 2 · 0⤊ 0⤋
I t has been going up cause' of gas milage and hurricane season.
2006-06-13 08:10:53 · answer #7 · answered by Anonymous · 0⤊ 0⤋
because Bush is President
2006-06-13 08:11:58 · answer #8 · answered by bug 2 · 0⤊ 0⤋