Why are the gas prices going up so high?

Question

I wonder what is causing the gas prices to rise so high? I dont understand why they keep going up and up. It seems like the United States is the only country with these crazy gas prices. I just would like to know why. Thanks!

I live in Michigan and the price right now for reg. unleaded gas is $3.48 a gallon......

Answer 1

First off, don't blame the oil companies or the President. It's always easier to blame someone else, but the current price is a direct result of the U.S. consumer - you and me.

If you understood basic economics and price theory you would understand why prices are going up (and will continue to up). Price is a function of supply and demand. The supply is low right now due to a number of refineries being worked on (scheduled and unscheduled maintenance). So supply is fixed. But demand keeps rising. Demand for gasoline by U.S. consumers is up 1% over last year, even though prices are 5% higher. Usually when prices rise, demand falls and then the price follows, but nobody in the U.S. seems to want to cut back on driving. Even worse, we are all driving faster. As you drive a car faster, you decrease the MPG of the car, meaning more demand. So we will either need to drive less (and at the posted speed limits) or we need to be willing to pay the price. Oh and don't forget all the SUVs, do we really need SUVs in major metropolitan areas?

Frankly I agree with Al Gore, the price of gasoline is TOO LOW. If the price goes up to $3.50 - $4.00 per gallon (which it probably will this summer, when demand is traditionally higher), people will cut back on their driving.

Answer 2

In the 70's there was a genuine shortage of gasoline as it was actually rationed. You could only buy on certain days and the lines at the pump were long......

Today were told that refineries are having problems therefore resulting in less gasoline being available. Well adjusted for inflation the cost of a gallon of gasoline today is the same as the 70's however; If there is so little gas then why isn't it being rationed? In the 70's there really was a problem with the supply, today there's a problem with the bottom line. Big oil companies want higher profits so they use any excuse to raise prices. It's all about profits!!

Answer 3

Don't you believe it! The US is not the only country with high fuel prices. Many other countries have government subsidized gas prices. England, several years ago had high prices, something like $5 a gallon or more. Canada has $4 a gallon now.

They (Oil companies) are blaming it on refinery breakdowns this time. They say the refineries we now have can't keep up with the demand. Yet, when the refineries are running full tilt .... the price doesn't go down, the money just goes into the oil companies' pockets. Over 50% of each gallon's price goes to crude oil costs. Then next 30% goes to refineries.

Hob

Answer 4

Currently, the United States consumes 19.6 million barrels per day, of oil, which is more than 25% of the world's total.. As a result, the U.S produces one fourth of the world's carbon emissions. Despite predictions that the U.S. will exhaust it's supply of oil in as little as forty years, the demand is on the increase, and is predicted to continue increasing, because of the ever increasing population. Increase in resource consumption is caused by three factors: population growth, new uses found for a resource, and increase in demand for a resource to increase living standards. Remember when only some men in certain careers drove pickup trucks/suvs? Now we have men, woman, teens driving these gas guzzling monsters to no end in sight

Answer 5

in all probability lol , it in simple terms relies upon which reason they supply us this time for it.earlier it became into because of the fact the cost of oil going up.Now their asserting cost of oil, is in simple terms a small result.Then it became into the hurricanes which i will understand.Then it became into for changing the blends from iciness to summer season and the opposite for later interior the year.And on a internet site i became into examining additionally they stated that, opec became into purposly reducing production by way of like a million million barrels an afternoon.which might then stress up call for.(so they are paying fewer human beings to artwork, yet getting tripple the income returned it not extra.)that does no longer, make anybody prefer to develop call for.additionally they use the scarce tactic, the place they think of they're going to have a shortage so they jack up expenditures extra anyhow.and each and each year they save rasing it,and rasing it So from is seams like no person particularly is familiar with, you will pay attention approximately one project then a week later, the cost drives up and theres no explination.the united stateshas a oil reserve with thousands and thousands and if not extra crammed with oil.and that they are contantly looking new places with lots of oil,in simple terms seams like opec in simple terms needs to make funds. the government would desire to some how, positioned a cap on the % they are in a position to make (opec,marathon,bp ect) as income,because of the fact its fairly lots a monopoly.I dont see why giving them extra funds because of the fact its rather low, helps with this so observed as :shortage".some think of it has to do some thing with pres. Bush, yet im uncertain ought to be available, yet im unlikely there.yet i will say venezeula has oil yet because of the fact their president(Chavez) hates Bush,so they decline to do any business enterprise.sturdy success on looking out the actual answer, i think of it would pi** alot of persons off, if we ever particularly found out.backside line, someones getting prosperous on the expence of others,on a neccesity and various that may not arise with the money for it.Like i stated, OPEC and the bigger gasoline station companies are a monopoly in theirselfs.because of the fact we've not have been given the different source and that they've us by way of the balls, besides the fact that they say, is going.

Answer 6

Gas prices in the UK are actually 2 to 4 times higher than here in the US. Canada may also be higher.

Answer 7

Actually the United States is the cheapest but we are hound dogs when it comes to gas. But what can I say we need gas to survive. I think it has something to do with the reserve level going down and the prices that it is costing to get the oil.

Answer 8

Because Big Oil wants to screw the consumer and have another year in recorded billions in profit.

That and George Bush helps them out by messing with the Middle East and driving the price of crude oil through the roof!

When is America going to stand up and demand change?

When will America force the Government into opening our borders to lower cost medicine and imported lower cost oil? If the Government reduced their taxes on our gas we could afford it! They already make enough taxing tobacco so why not cut America a break!

Its rediculous - we are all being nickle and dimed to death

Utilities, groceries, gas, phone and everything else!

When is enough, enough!

All we can hope for is that all those thousands upon thousands of barrels of crude oil our military has been sneaking out of the Persian gulf every day over the last few years in those fake Navy ships - modified oil tankers - will keep our prices normal while the rest of the world spins out of control.

You know it - I know it

We are not in Iraq for no reason

Answer 9

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Answer 10

God is just answering Our beloved president's prayers. USA's gas prices are actually cheap compared with other parts of the world.