could someone please explain to me why gas in so high an why the price go up an down?

Answer 1

The truth is gasoline, on a per gallon basis, is really cheap. You're just not use to seeing the price of gasoline, and it's value properly reflected in what you must pay for a gallon of gasoline.

Even alternative fuels can't compete with the price of how cheap gasoline is. If alternative fuel could compete, we'd be using things like ethanol. As gas prices move into a region where alternative fuels become cost effective, then gasoline prices will level off.

Answer 2

Ok here is a lesson that I want to give to you and everyone on why anything, including gasoline, goes up or down.
First there is the cost of oil, which is a world commodity. The recent industrial boom in China means that much more oil is being used worldwide than ever before. This means that demand for oil is high. People buy and sell futures on any commodity and this drives the price up or down. Things that made commodity traders buy oil futures (they want to make money when they go up) are global demand, weather (if it is cold then more oil is used to heat homes), actions that occur in any nation that produces oil (for example when Iran took the British soldiers hostage, prices went up), Hurricanes in areas of offshore oil rigs, or near states that run refineries.
Also, a recession in the world economy actually makes the price of oil go down. A good world economy makes the price go up.

You will also notice that gasoline tends to go up during the summer, because demand increases as people take trips in their cars or drive more.

Everything is driven by supply and demand in a world market. Greater supply or reduced demand make the price go down, lower supply or increased demand make it go up.

There is also the fact that refineries can only make so much gasoline. During times when refineries are offline, such as routine mainenance or if they are damaged by a Hurricane, they cannot produce gasoline or petroleum products. This will cause gasoline to go up. The US has also not built a new refinery in years due to strict environmental rules and red tape. So when you are paying more at the pump, you might also blame people like Al Gore.

I hope this all makes sense

Answer 3

You will normally see gas prices rise in the spring, around memorial day, it rises even more. Supposedly, the reason is because people are traveling, moving around more in the summer months, vacations etc. The problem is, that it never comes back down to where it started, it seems the prices keep rising every year. Before long, gas will be $5.00 a gallon, and I'll bet, that as American's we will purchase it, no matter the cost.

Answer 4

Well, the gas prices are essentially controlled by the oil producing countries. Simply put its supply and demand. When supply goes down demand increases and so do the prices. At times supply may be artificially controlled.

Answer 5

pollotics & greed,thats all!