What are the main reasons for the sharp rise in gas prices in the past few years?

Answer 1

The same reason a dog licks himself...because he can.

Instead of crying over gas prices, do what most savvy Americans do, and bet on oil getting more expensive via mutual funds or stocks.

Have you noticed a mysterious connection between Mideast conflicts and gas prices? Bet on more in the future.

Answer 2

Here is the best theory I have heard about the rise of gas prices in recent years.

As you may know, economics works based on the law of supply and demand. Oil prices are no different.

Over the last couple of years, demand for oil has increased significantly. This rise in demand is due to the rapid industrialization of several newly emerging economies, most notably China and India. In China alone, there has been a significant increase in the number of automobiles on the road.

On the contrary, the supply of oil has not increased. In discussing the supply of oil, I mean the refining capacity, not the amount that is still in the ground. As I understand it, there has not been much of an increase in refining capacity, and that has restricted the supply of oil. Also, OPEC, the organization of petroleum exporting countries, has worked to keep the supply of oil low.

When demand increases faster than the supply, the price goes up. This is what happened with the oil prices, for the most part.

Of course, I do not think you can discount the effect the major oil companies have on the price. Before this recent election, oil prices dropped about twenty cents. Afterwards, they went right back to their pre-election levels.

Answer 3

Greed. The companies claim that it was lack of gasoline supply, yet they post record earnings, not just slight earnings increase, but a large percent increase, look at the increase in net profits those companies saw on their yahoo company profiles. They claim that prices went up because they couldn't supply enough, but if that was true the lower availability would have offset the price increase to a certain degree. If you have less to sell increasing the price balances this out, they didn't balance it, they shifted it completely the other way. Katrina hit so they gouged, iraq goes bad so they gouged, a pipeline gets worn out for one company so they all gouge. We are in a time of war, not screw the american people time. The government should step in like they did in wwii and force the companies to take these obscene profits and infest in an alternative fuel infrastructure, work with the auto industry to develope the hydrogen fuel cell technology and make it widely available, this would in turn end the war on terror as we could greatly reduce our dependance on foreign oil. If those countries stop having the money to finance their terrorism, they won't be an issue.

Just my now worthless 2 cents. Thanks to artificial inflation.

Answer 4

Greed! Seriuosly, the President is an oil man. The people who REALLY put him in power are the energy industry and defense.
Iraq may seem poverty stricken but it is actually a bonanza of riches.The people are poor, not the country.The oil companies are getting richer. Oil and gas are important and everone know it. They can, if they want to,raise the price of gas as high as they want . And people have to 'dance to the music' because we have to have it.

Answer 5

Stopping Saddam from creating an oversupply of crude oil when he greatly increased production by ignoring his OPEC and UN sanctions quotas. All a free market means is that whoever controls a market is free to do whatever he wants. It is really a Fleece Market of self-hating sheep and Bible-banging Good Shepherds.

Thank Je$u$ that the Texxon Republic of America started its price-gouging war, which they refer to a I-rape-thee Freedom.

Answer 6

Oil prices have went up...War in Iraq is not helping this

Answer 7

it is the muslim's method of punishing us for attacking Iraq.