Crude oil is almost $50 dollars a barrel; down from more than $70 last April. Yet, gas isn't much cheaper than it was last April; still almost $3 dollars a gallon in some places in CA. Is there some explanation other than that the gas companies are just screwing us?
2007-01-11 05:38:57 · 12 answers · asked by JamesBond 2 in Social Science ➔ Economics
It is just California and your weird gas additives. It is much cheaper here in Texas.
2007-01-11 05:46:47 · answer #1 · answered by Anonymous · 2⤊ 1⤋
the oil companies are screwing us.
ok, since you want more of an explanation... basically the prices are not going to come down much from the current pricing for a variety of reasons:
crude may be lower in price, but it needs to be refined to make gasoline, and the oil companies swear that hurricane Katrina completely destroyed most of their refineries, and the only way to bring down prices is to build more plus rebuild the ones that were damaged in the hurricane.
big oil found out that our use of gasoline did not really go down that much, even when prices were over 3.00/gallon, so why should they give us the lower prices again? we're going to buy/use it at that higher price anyway, so they may as well make more money.
oil/gas companies are also still using the excuse that there is unrest in the middle east, so at any moment our crude supply could be cut off, ergo, they are hedging their bets.
2007-01-11 05:47:10 · answer #2 · answered by SmartAleck 5 · 1⤊ 0⤋
Well if crude was the only cost to produce gasoline I could see your point. But its not. Just wait till the spring when all the EPA fruit cocktails of gasoline blends have to be produced. You'll see gas prices go up no matter what the oil price does.
2007-01-11 05:48:00 · answer #3 · answered by Roadkill 6 · 0⤊ 0⤋
Do you have any Idea how much the price of gas get jacked up by gas stations. The people who sell barrels of oil arn't the one's selling it to you. It goes through a lot of hands before it gets to you. And when the price of gas goes up, they don't like putting it down.
2007-01-11 05:54:37 · answer #4 · answered by Mr. DC Economist 5 · 0⤊ 1⤋
Because the corporations have been successful in getting the population to accept $2.50+ as normal. Therefore, no one questions it. It will probably get to $10/gallon before riots start happening.
Isn't it great to sell a product that is immune to market conditions and you get basically set whatever price you want and people will pay it?
2007-01-11 05:48:31 · answer #5 · answered by trer 3 · 2⤊ 0⤋
Because they think we don't know this and we're stupid. they are screwing us.. EVERDAY!! Go where the cheap gas is or fill up and keep it full. You'll save a lot of money that way. don't let it get down... We'll also screw them in the process. If noone bought gas for one day.... You'd see some panic IN A HURRY!
2007-01-11 05:51:01 · answer #6 · answered by amylr620 5 · 1⤊ 0⤋
Because the oil companies are GREEDY, and governments are too gutless to ORDER them to use cost-plus pricing, so they GOUGE as much as possible and this will BE the status quo until CONSUMERS get mad as hell and do something about it.
2007-01-11 05:47:25 · answer #7 · answered by fiddlesticks9 5 · 1⤊ 1⤋
Probably more excuses than explanations...but I dont think the term "what the traffic will bear" is more true anywhere else....
2007-01-11 05:47:47 · answer #8 · answered by Rick 3 · 0⤊ 1⤋
Bush is still President!
2007-01-11 05:53:25 · answer #9 · answered by 511@ 4 · 0⤊ 1⤋
because people are willing to pay that kind of money for gas, its a necessity.
2007-01-11 05:46:46 · answer #10 · answered by ? 1 · 0⤊ 1⤋