i understand the idea behind supply and demand. However, a few years ago gas was on average $1.50 a gallon. Now it's over $3.00 per gallon. I'ts funny how it starting going up when houses went up. I heard cnn news say it's mostly because war in iraq. However, the middle east only supplies the u.s with 8% of our oil. Also i don't understand how these people with those big suv's are driving around these days. Car payment, insurance , and gas wow!
2006-07-27 16:28:20 · 12 answers · asked by Anonymous in Politics & Government ➔ Government
CNN would like you to believe that. Gasoline taxes levvied by the federal government are a PERCENTAGE of the cost of crude oil so the taxes on gas are rising with the price. whatever the price of a barrel of crude is on a particular day divide by 55.
$80 / 55 gallon barrel= 1.45. add 1cent to refine, another dollar for transportation to the pump, and profit and the rest is Federal, state, and local taxes.
Uncle Sam and the dictators producing oil are the ones doing the gouging. add onto that we havent built a refinery in this country for 20 years( Congressional Democrats wont allow it) and are not allowed to drill for oil on our own soil.
2006-07-27 18:39:36 · answer #1 · answered by bigdan6974 3 · 1⤊ 0⤋
A lot of is these big oil companies have bought out all the small ones thus they decide how much gas to release and they control the price. In the 80's they had all the gas draining big cars that got very poor mileage then they went to smaller cars with better gas milage now this is repeat of the 80's in the future they will tighten the supply you will wait in line to the extent they make you happy to pay any price as long as you can get your gas and the big draining suv's will vanish
2006-07-27 23:38:35 · answer #2 · answered by Zoe 4 · 1⤊ 0⤋
It has nothing to do with supply and demand -- there is actually a glut of oil on the world market. What's going on is a couple of things.
First of all, the world financial system is going kaput. The big money dealers are a) driving up the price artificially on the London Spot Market -- speculation on the price of oil months in advance, and b) hoarding resources and commodities (such as strategic metals) to maintain control on those resources in the coming crash.
The US, at any time, could contract oil agreements to another nation directly, and bypass the middleman, in which case oil would be at about $25 / barrel. (Of course, this adminstration isn't likely to do that!)
Petroleum is also better used for petro-chemicals, rather than burning it for fuel. Time to go for nuclear power plants!
2006-07-27 23:36:07 · answer #3 · answered by Joya 5 · 1⤊ 0⤋
You've got all the rich people like the Bush family and those that own oil tankers sitting out in the Gulf until the price is right and then they release shipments of oil, then go back for more.
As long as Americans don't conserve and change their driving habits, (supply and demand), prices will continue to go up.
We need to make it ILLEGAL for speculators to decide what gas prices will be everytime some country goes to war.
We need to remove oil and natural gas from the commodities market.
2006-07-27 23:35:10 · answer #4 · answered by reignydey 3 · 1⤊ 0⤋
We use more gas because of non efficient vehicles. Oil companies have taken advantage of wars through the world including Lebanon (which has nothing to do with us) to raise the prices. People will not only pay the high prices but blame the President, Congress, gas stations, Israel - anyone but the oil companies who are raising the prices.
Who has cut back on their driving? almost no one - including myself. When this happened in early 1970's, everyone cut back on driving.
2006-07-27 23:37:09 · answer #5 · answered by Wolfpacker 6 · 1⤊ 0⤋
You can directly blame Bush for this one. He is profiting from the high price of gas. Exon posted 10 billion dollars profit last quarter. That should be an indication that something is wrong with the system.
2006-07-27 23:33:48 · answer #6 · answered by Anonymous · 1⤊ 0⤋
It keeps going up because you keep paying $3.00/gallon. Simple as that. If you would pay $100 for a pizza don't you think that Dominos would charge that much?
2006-07-27 23:47:44 · answer #7 · answered by Thomas the Tank 2 · 1⤊ 0⤋
Idiot liberals don't want new gas refineries in their neighborhoods. They also don't want the trees chopped down in order to drill for more oil in the US.
2006-07-27 23:33:40 · answer #8 · answered by Huevos Rancheros 6 · 0⤊ 1⤋
Why are people willing to pay even more for bottled water?
2006-07-27 23:33:22 · answer #9 · answered by Anonymous · 1⤊ 0⤋
Because the idiot liberals are oppossing the buidling of nuclear reactors.
2006-07-27 23:31:13 · answer #10 · answered by Ricky T 6 · 0⤊ 1⤋