Why is the price of gas going up so fast?

Question

why does it cost 50 bucks to fill up a car with gas?

Answer 1

The price goes up when demand outpaces the supply of gasoline. and that would mean if we as Americans drove smaller cars than suvs we would have less demand. Also we need a new fuel source other than petroleum.

Answer 2

the thing is with all of this "supply and demand" talk... is, the price isn't increasing relative to supply and demand... like let's look at it...

I live in S.C. and at the beginning of the year gas went from around $2 to around $3 in about 4 months... there was clearly no supply or demand increase that would cause it to increase by $1 in that time period (THAT'S A 50 PERCENT INCREASE)... since then it's gone down... .about 40 cents to around $2.60 here... again no major drops in demand or increases in supply to explain the LARGE percentage drop... (to account for these kinds of swings, entire nations would have to stop and start using oil and gas on a whim... that's not happening... there is growth, but it's slow, steady and has been occurring for 20 years)

if the demand is increasing at a rate that they say it is... there would be no price drops... only increases...

I think the major force at work right now are the speculators... or those that work on trends and fears in the market to set the prices... based on things that could be real or just perceived fears that may not be real...

A market as large as the oil market is shouldn't see such instability, unless it's a national catastrophe hits... we had Katrina, but the price has stabilized and then destabilized again since then... it's insane...

Answer 3

There are a few blips in the industry that caused some supply and demand problems, but they were short-lived. Truth is, there is no good reason. If it was a supply issue, then the oil provider profits would have remained flat - price they pay for it would have gone up while the price they charge us at the pump went up. But if they pay basically the same as they did 2 years ago, but charge more, their net profits go up. In fact, these companies have taken an opportunity to use 'perceived threats' mid-east troubles and two weather events as scapegoats for price increases.

To me, if they act responsibly and use these profits for research in alternative fuel sources, then it would be a good investment on our part. If on the other hand, they use these profits as bonuses for the CEO and a few board members, then shame on them and shame on us for allowing it.

As to why it costs $50 bucks, it's a free enterprise system, most of us have alternatives, however more inconvenient they are. You're probably just lucky your car doesn't run on bottled water - have you checked the price of a quart of Evian lately?

Answer 4

Oil prices are subject to supply and demand. If a person running a country starts a war, it disrupts supply driving the price up. Creating a financial windfall for anyone invested heavily in oil production that is not disrupted.

Thus it is an unconscionable conflict of interest for a person that runs a country to start a war in an OPEC nation and still maintain full vestry in his oil interests. Much less letting the conflict drag out opposing any timetable for withdrawal.

Hmmmm King George is heavily invested in foreign and domestic oil production. It is no wonder that he attacks any critics with such anti-American rhetoric.

Answer 5

So you want to live in Europe, daaaaaaaaaaaa!
We Americans are so spoiled, just look at the price of gas in England or France. Makes you want to go out and buy a bicycle.

Answer 6

well the recent hurricanes rita and katrina damaged a lot of our oil things in the ocean so we have to borrow more from foriegn countries and they aren't stupid so they have uped they're price and for the gas company to make money they have to charge more than what they're paying for the oil, so you end up having to spend more money on gas. it might eventually go back down again once things are reapaired and such but only if major hurricanes lay off a little

Answer 7

The oil companies know they have us over a barrel. We need gas to live our everyday life. We need to get off of oil. I"d rather pay our american farmers for corn based fuel than those people over in the middle east! It can be done Brazil is 90% off on oil from what I heard.

Answer 8

Because Bush has less than 2 more years in the White House.

Answer 9

Good question. It doesn't cost anymore to refine than it used to. It doesn't cost anymore to ship it than it used to. Oh Oh I know its because of "instability" in the region. I wonder why its unstable over there........

Answer 10

because gas is a limited recource and it's running out fast.