Why are gas prices so high? Is it related to the war with Iraq? Why?

Answer 1

Money.

Answer 2

Gasoline is more expensive for many reasons, but primarily because of the combination of strong demand, reduced supplies from refinery disruptions and lower imports.

Sure, it's easy to blame it on the oil companies or President Bush, and yes... oil companies have to make a profit too, but there is a lot more to it than that. I could go on forever on this topic, but I'll keep it brief.

Since Americans are driving more, the demand is at an all-time high, and Imports to the U.S. in the first quarter fell 12 percent (if I remember correctly) compared with the same period last year.

REFINERIES:
Although there haven't been any new refineries built since the 1970's, the industry has increased production through the expansion of existing refineries, adding the equivalent of a new large refinery every year for the past decade. Adjustments made during maintenance means refineries can now produce more gasoline (and diesel fuel) from the same barrel of oil. Since last year, America's refining capacity has expanded by more than 200,000 barrels per day (42 gallons per barrel). So, despite scheduled refinery maintenance and unplanned refinery outages, current U.S. gasoline and diesel production is at record levels.

Efforts to cut refining and pipeline maintenance costs in order to reduce prices at the pump, also have an affect on safety and structural integrity, further hurting supply (for example: the pipeline corrosion at Prudhoe Bay, AK and the Texas City refinery explosion that killed 15 BP contractors, for example).

Also, every year during the month of May, refineries and terminals convert from winter RVP (Reid Vapor Pressure) gasoline to summer RVP, which is more expensive to produce. Refining capacity is reduced during this conversion. The conversion, however, is now complete, so you should see prices drop in the coming weeks.

Meanwhile, the shortages are real, not manufactured, although they are, in part, a symptom of a business culture that allowed for such shortages to occur.

Answer 3

In my opinion, gas prices are this high because the gas companies are making record profits. It's pretty butt-simple, if they are raking in money hand over fist, which every report says they are, than it's coming out of our pockets.

The other factors are man made, and thus man controlled. We have no new refineries, because they've decided it's more profitable to keep it this way. With an oil-funded government in office, there is no attempt to control the industry, so it continues to stick it up our butts without any of the lube that they make so much off of.

Answer 4

Simply put, greed, also known as "supply and demand." People are forgetting that we have oil off the coast of Louisiana, California and the Alaskan Pipe line. There is just no reason for this thought they keep coming up with them on a daily basis. One day it's the war, the next day it's some kind of tropical storm or we don't have enough refinery's. They come up with something new everyday.

Answer 5

Not at all related to Iraq

We have not build a new refinery in the US in 31 years. They are running at capacity, which is not good. One or two go down and we are toast.

Then add to that that most Democrat run states have variable gas taxes. This means is pegged to the price, not a flat tax per gallon.

Then tack on that China and India are consuming more and more and the US refuses to drill for oil in most of the country.

Then add the 50 plus different blend requirements.

Of course uneducated liberals say it is just oil company greed.

Answer 6

Gas was .25 a gallon in the 60's. Wages were 2.00 per hour.

1980 $1.25 a gallon wages around $10.00 per hour

I make a lot more now. Drive 70,000 miles per year and it is still cheaper than 1980.

It's called inflation. Use to pay .19 for a loaf of bread too. .25 for a burger and fries at Macs, Homes went for $30,000 It's called Inflation

Answer 7

gas prices are high because there is more demand than supply. remember that there is a limit up to how many tons of oil can be processed in a day. the war in iraq is actually about oil as the sooner there is a US friendly gov't instituted and civic unrest is quelled the sooner gas prices may be lowered.

Answer 8

Because India and China are now importing nearly 5 million barrels of crude daily whereas just a few years ago they imported only 500,000 barrels

Thats creates a shortage and that drives the crude up.

Answer 9

sorta i mean gas companies use everything as an excuse to raise the gas prices. did u see the gas prices when Katrina happened? i mean unless u live in new orleans it doesn't affect the oil or gas so ya they're just doing it cuz they can

Answer 10

its related to America taking whatever comes our way and dealing with it , instead of not buying gas for one week which would cost the oil companys 2 billion dollars and force them to lower prices .

Answer 11

ya i think that it used to be, but government saw the opportunity to make a whole lot more money, so they decided to make the prices higher an higher.they can do what they want because they know they can confuse us. it DRIVES ME INSANE HOW AWFUL THE GOVERNMENT CAN BE!!!UHHHH!!!!