How are gas prices determined in the US ?

Question

this might be the only country where gas prices can fluctuate by the hour... why so ?

Answer 1

Get off the conspiracy theory people. It is not about the President or whatever. The only part the government has in the determination of gas prices is the taxation of the gas. That falls under all levels of jurisdiction though, not just federal but also state and sometimes local.

The gas prices are determined MAINLY on supply and demand. OPEC determines the price of crude throughout its member organization. War zones mean more difficulty in the transportation of crude oil, prices will raise. Refineries at maximum capacity already (thanks to the Lib enviro-nazis not wanting the construction of any new refineries) sllows production ability so prices can also raise. Weather around drilling areas and in shipping lanes (I.E. hurricanes near refineries in gulf area) will also drive up prices. There are MANY aspects.

Answer 2

Gas prices are set by the market, the same as any other product you buy. Supply and demand change the price. Currently gas prices are high because several refineries around the nation have been taken out of service, reducing supply, and thus increasing costs. Also summer bring increases in driving, forcing demand up and increasing costs. And on top of that, the government requires cleaner burning blends in the summertime that costs more to process. For a breakdown of how gasoline prices are set, I refer you to my source link which is published by Marathon Petroleum Company.

Answer 3

The Wall Street Stock Traitors have a lot to do with it. The price of oil greatly determines the price of gasoline. If high demand is projected it goes up. If high supply is projected it goes down. If risk to a refinery (hurricanes, etc) is projected it goes up. If an Alaska pipeline is damaged it goes up. Anything which may potentially affect supply or demand will affect the price very quickly. It is almost better to think of gas and oil as a stock than a physical good as oil is a commodity.

Answer 4

According to Bushites...Supply and Demand.

If the oil countries produce more oil, prices go down. If they decide not to, they go up. If news in those countries are bad, like lets say Iran does some missile testing....they go up on anticipation of war or sactions or something. Anytime some form of military action is or could potentially happen...prices go up. If everything is peaceful, then either stable or decrease in prices can be expected.

Natural disaters like hurricanes in the south affect off shore drilling and the supllyu gas stations have. Then again, prices go up. Anytime there is a break or anticipated break in supply prices go up. When things are good...same or lower prices should be DEMANDED!!!

Answer 5

Mainly OPEC or any country, like Venezuela, who produce oil. If OPEC cuts production, the price goes up. If they increase production, the price goes down.

Look at it like this. Yes, the oil companies are making more profits, but like anything else, the cost of doing business goes up. A drilling platform in the Gulf of Mexico was $180,00.00 dollars a day, day rate to anyone with money and a place for it to drill. As prices have gone up for oil, that day rate is now $850,000.00 day rate. So, you see, just becuase they make more money than last year, they shelling it out just as fast. And of course, their CEO's are making more, so the employees make more too.

Lets drill off California, florida and Alaska for the oil we have and cut our dependance on foreign oil.

Answer 6

Gas prices are determined by the greed of the Oil Companies and the need to pay gigantic bonuses to their CEO's.

Answer 7

Supply and Demand...that simple! Quit trying to read more into it than it is and, surely, don't listen to the Main Stream Press or the "Libs" who have no understanding of simple economics.

Answer 8

Complex calculations based upon the size bonus the Oil Company CEO wants.

Answer 9

They may fuctuate but they are still too high. Some big oil exec. has a dartboad and GWB gets to throw the darts.

Answer 10

When you get up to $8 a gallon like us here in the UK, it will stabilise.........!