why are gas prices so high?

Answer 1

It will sell for whatever we agree to pay for it.

Answer 2

I work for a O/G (Oil/Gas) company. I hear a lot that our industry is engaged in "price fixing", "collusion", and other predatory pricing stuff. Simply not true. The real reason why gas prices are so high (in Capital Markets) is because of Supply vs. Demand.

It takes a **LOT** to get the oil located, extracted, refined, processed, distrubuted, and eventually into your gas tank. However, every week, people still keep pumping this stuff into their gas tanks. BOTTOM LINE: The Demand outweights the Supply! As a result, you pay >$3.00/gallon.

Granted, there are countries where you will cost you less than $0.50 (cents) for a gallon; however, that is solely attributed to the fact that the respective governments offer MASSIVE price subsidies. (In a Capital Market economy, they would be paying the same thing you/me are paying!)

Basically, you can do 2 things we can do to immediately have an immediate impact:
> We all need to consume less! (That will force the prices closer to the economic equilibrium point, again).
> Petition your representatives to CUT the taxes on petrolium. Basically, the petrolium companies are being taxed on the output, and then the consumer is being taxed on the gas purchase. YOU are being hit! From an accounting perspective, that gallon of gas is being taxed TWICE!

Answer 3

The current price increases are due to problems in gasoline supplies and refinery output...or, so they say.

The average gas price went above $3 a gallon on May 4, and has been climbing since (almost $3.20 a gallon right now). Unless prices fall suddenly, Wednesday will mark the longest stretch of $3 gas on the AAA survey's history.

While crude oil prices have fallen over the last few weeks and oil supplies are high in the United States, problems at several refineries have crimped gasoline output ahead of the summer driving season.

The refinery problems include fires, power outages, and longer-than-usual maintenance periods.

Answer 4

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Answer 5

There are 3 reasons:
1) The exchange rate for the dollar has fallen so everything we import--including oil--has gone up in price. The exchange rate has fallen because of the debt, which was run up in order to pay for the Iraq War and for tax cuts for billionaires.
2) The futures market bids up the price of commodities when it sees the possibility of a lack of supply, so its betting on a change in supply and demand. With a war going on right beside the oil fields of the Middle East, the futures markets see the possibility of a cut in supply and a higher price.
3) Good old supply and demand. Look around next time you are on the road--look at all those over sized, over powered, gas guzzling, gas wasting SUV's, most of which are not occupied by more than one person. Its not like people haven't been warned. They did it themselves, by buying in to the silly marketing that told them they needed huge vehicles in order to be ...with it.

Answer 6

Yes, it is greed plain and simple. A Exxon rep. in an interview was asked that question, he said " we can charge whatever we want, plain and simple ". Thats it in a nut shell. I saw the interview! And by the way, self-serve gas does "NOT" lower your prices. I live on a state border, and it cost more in the self-serve state, now go figure!

Answer 7

In the 70's when the dems controlled our government, they changed the regulations for new refineries. yes they did need to be improved but it became a pissing match and the petro co.s decided to not spend the 4 times as much to build or upgrade. they said well we will see who is bigger... fast forward to today, when our refinery capacity is maxed out and the demand is greater than the capacity. if something is wanted and in short supply, like ps3 or wii games, the price goes up. problem is the libs have the government again, and they don't want to help out our industries now anymore than then.. and so your vote counts, again.

Answer 8

Gas stations have to pay a fee for each credit card transaction. Say to yourself CASH for GAS again everyone now CASH for GAS stop using credit cards!

Answer 9

US gasoline prices are STILL among the lowest in the world. Try US$9.00 per US gallon in the United Kingdom.

Answer 10

i dont know
but i cant figure out any apparent reason
they werent even this high when 9/11 happened
its like wtf!!!
im not rich!!! its $3.30 where i live
F**K!!!!!