They have plenty of excuses like that every single person in china decided to buy a suv and drive it at the same time or the hurricanes that happended LAST YEAR,I understand some of what they say like that they dont have enough petrolium plants but still ,come on its been $3.00 a gallon now almost since it started last year.You cant tell me there wasnt a opportunity for it to go down since then.
2006-08-07 20:04:34 · 14 answers · asked by Mr Toooo Sexy 6 in Cars & Transportation ➔ Commuting
It seems awful odd that last year due to the hurricanes gas prices went to record highs and now in the same month we hear that they have to shut a pipeline and it will cause another increase ,(kind of makes you wonder if they have a quota to meet)
2006-08-07 20:13:07 · update #1
Heres my way out.
http://www.frybrid.com/test.htm
join me and lets stick it to the oil companies!
2006-08-07 20:17:26 · update #2
It's a scam. They blame the war in the Middle East but the United States doesn't get a lot of oil from there. Then they blamed last years hurricanes for disrupting the refineries on the Gulf. It's all BS. Someone is making a whole lot of money at our expense.
2006-08-07 20:10:52 · answer #1 · answered by Anna 2 · 0⤊ 0⤋
I don't think it's an outright scam, but simply the product of a market structure known as an "oligopoly"--that is, a market where a small handful of producers control the majority of the market. Gasoline refiners can't get together in a board room and collude to fix prices, but they *can* (individually) jack up the price per gallon, nod and wink, and watch all the other refiners do the same thing while returning their own nods and winks.
As for the currently elevated prices, I think they result from a combination of "real" market forces (market disruptions, increased global demand, etc.) and "artificial" market forces (the nodding and winking and jacking up prices to arbitrary heights). Basically, the refiners exxagerate market blips for their own gain.
I don't think there's any huge conspiracy here, just businesses doing what businesses like to do--maximizing their profits. The fact that they can rake in the disgusting profits that they have been for the past few years is the result of a market structure that ALLOWS them to. Any other type of business with such a high profit margin would almost immediately result in new producers entering the market, introducing more competition, and eventually bringing profits down to a more reasonable level. Not so with oil refining. BILL GATES couldn't start an oil refining company today (although he could probably buy an existing one). There are far too many barriers to entry, not the least of which are the highly stringent government regulations.
2006-08-08 03:21:53 · answer #2 · answered by The Nerd 4 · 0⤊ 1⤋
It was said before, supply and demand. As long as the demand stays high, the price will stay high. Even if oil prices drop, the price at the station won't go down. They know you're willing to pay $3+ a gallon. When demand goes down, the price will go down. But the way it goes is when prices go down, people buy SUVs and trucks for no reason. Big oil and gas station owners are in the business of making money, along with most every person in this country so is it really wrong to make a dollar?
People pay $3+ for a cup of coffee from Starbucks. A very overpriced cup of coffee, but people will continue to buy it knowing it takes a minimum wage worker a half-hour to earn $3 to buy a cup of coffee.
I own an SUV because my lifestyle demands that I own one, so I understand your pain, but I also understand the basics of business.
2006-08-08 03:18:42 · answer #3 · answered by vegas.monaco 1 · 0⤊ 1⤋
Its really all supply and demand. If they make gas $4 a gallon and people keep on filling their quota of demand the price will just keep rising until people stop paying. The problem is that people are completely dependent on gasoline to live and a lot of people even if it cost $50 a gallon would still pay it.
2006-08-08 03:09:07 · answer #4 · answered by bombhaus 4 · 0⤊ 1⤋
Gas has been $3.50 plus here in northern California. The whole scam is rediculous. People do need to reduce there fuel usage or change to something else for transportation. We just don't we want it fast and cheap so we pay for our lack of patience with our pocket book.
Where is the gas money going? really, we may find your answer in that section of life.
2006-08-08 03:15:48 · answer #5 · answered by Brandy 3 · 1⤊ 0⤋
of course gas prices are fixed and the oil companys are not going to do anything about it till people stop buying so much gas which isn't going to stop any time soon
2006-08-08 03:12:06 · answer #6 · answered by bigrigdvr 3 · 1⤊ 0⤋
We are getting ripped off and now the prices are going to go higher since they are closing a pipline in alaska
2006-08-08 03:08:42 · answer #7 · answered by Anonymous · 1⤊ 0⤋
Well, I think there are some people that are taking advantage of the situation. But, I do not think there is a conspiracy to keep the prices up
2006-08-08 08:09:53 · answer #8 · answered by Ilovechristjesustheking 3 · 1⤊ 0⤋
Vegas Monaco has got it - I totally agree.
People l like to dream up big scams about things when they are reluctant to blame themselves for high gas consumption. MOre and more big cars are bought despite these conditions.
2006-08-08 17:47:02 · answer #9 · answered by splath63 2 · 0⤊ 1⤋
wellll....I guess you could drill your own well, or go solar and wind power??
We still pay some pretty cheap gas. What would you do if you couldn't afford it at all? Pretty soon it will be like that.
2006-08-08 03:09:24 · answer #10 · answered by powhound 7 · 1⤊ 0⤋