Why are gas prices going through the roof?

Question

Does anyone one know why in the world the gas prices r going through the roof lately???? I have been passing gas stations all over with the place here in Massachusetts with the price of 249 a gallon up almost 35 cents in just 2 weeks? What's going on another Hurricane? What's the excuse this time and it is only March!

Answer 1

What's going on? Just look at the oil companies and two words should come to mind...organized crime. The mob syndicates who run these companies are out to screw you for every cent they can get. Up here in Canada the price of gas jumped by over 40% last week because there was a minor fire at an Esso refinery. Everyone is saying that Esso set the fire themselves to raise prices. Repairs to the refinery are going dismally slow (the longer repairs take the higher the price goes) and meanwhile they're raking in extra $$billions. Governments won't get involved because they're in bed with the oil companies. Thanks to folks like us the oil execs can funnel hefty amounts into their accounts in the Cayman Islands or wherever!

Answer 2

Great question! I would like to know, too. I drive to work and it is 2.33 and drive home and it is 2.55. OK why did it go up 22 cents everywhere in less than 12 hours? At least Mass is 35 cents in a week, here in southwestern OH, it is taking less than a day. I used to think it was based off the price of crude oil in the market or production over seas - the war. Holiday weekends always seem to spark an increase. Maybe the inflation that is starting to cripple the nation especially as the housing market comes out of its bubble. Somebody is making money and it isn't the independent station owner.

Answer 3

first of all, a extensive area of the gas subject is with the help of the potential of the U. S. dollar that's interior the cellar as a results of fact the government solves the "credit disaster" which the government created. Oil is priced in money, so I guestimate a minimum of $a million.00 a gallon of the upward thrust belongs in this class. Obama won't have the means to repair this, in simple terms make it worse with the help of spending much extra taxpayer money attempting to assist the gamblers who won't be able to upload to the detriment of people who can. The wars are unlikely away each time quickly no remember who gets elected. Obama has reported he could advance taxes notably to assist a socialistic schedule which, interior the process a recession or the start of one, spells financial disaster of the 1st order. With a liberal congress and a liberal President one has no answer yet to cover the $$ from those crooks. i'm fairly bi-partisan. I hate all politicos, Rep or Dem they are destroying this super u . s . a . with thier misguided regulations and efforts to globalize us right into a 0.33 worldwide potential. McCain could probable do the smallest volume of harm. I starvation for actual "substitute", like a 25% alleviation in Federal and State payrolls.

Answer 4

An interesting place to look for answers to your question is to check out the Short Term Energy Outlook produced by the U.S. Department of Energy's Energy Information Administration (link below). Some interesting highlights of that report is that we've actually been experiencing a dip in prices until recently because the mild winter has reduced demand for heating fuels, and that we're on an overall trend of increasing consumption (expected to go up by 1.4-1.5% from 2007 to 2008). Both of those could explain a rise in petroleum prices.

Of course there's more. The report goes on to report that globally inventories of crude have been high so oil producing countries have cut production to stop a price slide. However, that may be irrelevant to folks in the U.S. since America is so short on refining capacity that it has the curious effect of insulating us from price drops in crude while allowing price increases to affect gasoline prices over general supply concerns.

That's just my take. You're free to check it out and come to your own conclusions. In any case given that petroleum is a finite non-renewable resource I tend to regard the whole matter as something of a sexless soap opera for governments and energy wonks and assume that the norm will be price increases for one reason or another and that any decreases are little more than a perverse tease brought about by the machinations of various national and corporate entities. Until I look out my window and see dinosaurs walking around again there's little reason to believe any different.

Answer 5

When and if US military operations extend on into Iran, chances are better than good that the Oil producing countries in the region will unilaterally impose an oil embargo against the US and in that event the price at the pump will---- well you get the picture.
In anticipation of the likely hood of such an event the administration is in the process of doubling our oil reserve capacity in order to better soften the economic blow if such an oil embargo might occur and this may have something to do with additional pressure on supply that is driving the price up.

Answer 6

Bush wants gas prices to hit $5 per gallon before he leaves office. I don't mind because I know he'll be scr ewing himself. With prices that high, people will actively begin looking to convert their older model cars into electrics. And we only need ONE entrepeneur to start making N-machines to power them with, or any of a dozen other possible power supplies out there, and we can ALL say goodbye to fossil fuels forever. We have the technology. We only need the kick in the rear. Bush is inadvertently providing just that!

Answer 7

it is simple it is called supply and demand... we have not built any refining stations in the country in over 35 years... but we have closed down over 24 of them... which means we can make less fuel than we could 35 years ago....

we dont have a supply problem.. we have a refinging problem...

that is the whole deal.. that and the South American venz, asshat prez hugo chaez( or what ever his nut job name is ) is trying to get the oil suppling nations to drop what they are producing to drive up price.

by the way anyone that say.. it is GW fault.. your an idiot.. go back to school and learn to read some...

the "oil companies" in the US pretty much buy product from other countries which means "we" are going to pay what they want.. thank a Democrat for not allowing drilling in the US... or off the coast of the US.. by the way China and cube and at least 9 other countries have oil platforms 14 miles off the calf / and florida coast....

as far as the price goes... here is the best I can explain it..

lets say you sell pencils.... for 5 cents... and your supplier sells them to you for 5 cents... you make a 0 cent profit.. and every week you sell 100 pencils.... so you are making ZERO money on the pencils... you have just enough to resupply your supply every week.... now lets say your supplier comes to you and says... Sorry but I have to raise the price on your next order.... this is the last order you will get for 5 cents from here on out.. the price is 7 cents... well.. you still bought the pencils for 5 cents. on this order..... what do you do? you have to raise the price of pencils to at least 7 cents so you can replace the 100 pencils next week at no profit... or you wont have 100 pencils to sell next week....

pretty much thats the way everything works.... it doesnt matter what you got this weeks 500 gallons at... it matter what next weeks 500 gallons is going to cost..

last year the avg. oil company made 8 cents per gallon profit.. while state and federal govs. made 43 cents to 77 cents profit in taxes on 1 gallon of gas.... hmmm now who is screwing you?

should get use to the price going up... china currently uses around 10 to 14 million bars. at this time... they WILL have more cars in china in the next 5 years than we have people in the US...so.. the world oil supply will drop alot which = the price will sky rocket..

Answer 8

Because we as consumers allow it. I remember a couple of years back when the truckers shut down I5 in California. the prices came down real quick only to go back up. The big petro companies are making record profits and will continue to do so as long as we sit back and pay at the pump. It is almost back to $3.00 a gal in Ca again.

Answer 9

Because "they" know that no matter how high it gets, you (and i) will still pay for it.

Sucks dont it....

Also, we as a country still have fairly low gas prices compared to other parts of the world so dont get too upset (imagine paying upwards of 4.00-5.00+ dollars per gallon), it could be much worse.

Answer 10

Spring is just around the horn and how would all the big wigs afford to buy that new condo in the Bahamas if they don't raise prices??? There is no reason, plain and simple,,it's all about greed man. GREED.