Do oil companies have a right to raise gas prices?

Answer 1

Absolutely, why wouldn't they be able to? You don't HAVE to buy it.

Answer 2

Oil companies don't raise gas prices. Gas prices are determined by supply and demand. If the supply is low and the demand is high, gas prices will rise. If the supply is high and the demand is low, gas prices will drop.

But to answer your question more directly; Why shouldn't oil companies have the right to charge anything they want to for gas? They search for crude oil. Pump it out of the ground. Ship it to refineries, and process it into gasoline and other petroleum products.

All that costs money... big money. The profit margin for oil companies is less than any other business in the world. When you hear that an oil company made billions in profits, ask yourself what it cost them to make those billions. The answer is also billions of dollars. The profit margin... the difference between what it cost to make the product and what the actual profit was, is small.

If you're angry over the price of gasoline... ride a bicycle!

Answer 3

Oil production is regulated by OPEC. Then depending upon the supply and demand, the gas companies determine the prices of gas.

Answer 4

oil companies raise oil prices. Gas is made from oil. this in effect raises gas prices.

Answer 5

Well...if the oil company also finds, produces and sells gas, yes. Though it does depend on the region--I suppose a nationalised company would have restrictions applied to it.

Answer 6

In the USA, yes. They can charge whatever the traffic will bear. If you lived in Iran, Iraq and Saudi Arabia you could get your gas for under 25 cents a gallon.

Answer 7

sorry this wont really help you but it can give an idea i don't know but they don't care as long the big boss gets all his money and his benefits hes happy if h doesn't hell raise the prices

Answer 8

of coarse... as i have the right to set the price on anything i own...so should the gas companies....yet consumers like you entertain the thought of telling me what i must sell it for because you all figure i made enough money. most americans spend thousands and thousands on cars but whine about a few cents increase....another stat...people spend more fixing up their cars with stereo and rims that they spend on gas, they are more worried about how they look...

Answer 9

OPEC set production levels.

it's investors that fluctuate the price of oil based on those production levels.

Answer 10

Yes, just like you have a right to ask for a raise. Whether or not you'll get that raise, well, that's a different story.

Answer 11

to a certain extent, yes. as long as it can be proven that it is necessary, and they're only making a certain amount of profit. but not when they're making $2 profit for every gallon they sell.