What do you think the is the real reason for the high gas prices & will they ever fall below $3.00 gallon?

Answer 1

From what I understand of the gas price problem is that due to the lack of building new refineries in the U.S, we are stuck with importation of our fuel. Another thing that is also driving the prices up is the preasure for new energy sources. For years we've heard about global warming and the need for other energy. Well now thigns like hybrid cars are showing up on our streets. This hurts the oil company in sales and in stocks due to other emering energy companies.

Also the season of summer due to its high travel rate, the prices are always hiked up a bit during this and other travle seasons. As for if it will go down below $3 again.

Yes, for short periods of time when the oil companies need to move more product. THey will bring it down as a sort of repreive so that people do not become overly pissed off about the gas and oil situation. It's apolitical move ont he oil companies part, more than anyt hing.

But you can rest assured that for the next few years we will see high prices until other energy sources and hybrids become the mainstream.

Oh one more thing. War! LOL how could I forget this. At war time prices go up due to the production of materials needed in war. We the people of this country finance this war every time we fill up at the tank.

Hope this sheds some light on the issue.

Answer 2

i think the real reason is there is a very serious energy crisis looming less than 20 years down the road and the government and the oil companies are breaking in that reality so the economy doesn't become paralyzed when gas is $7 or even $10 a gallon.
the other real reasons have to do with supply & demand, state taxes, OPEC nations, inflation, and hostilities in the Middle East.

prices could slip under $3 in the off-peak seaons, but overall they will only rise unless some massive oil field is found under the sea or something, but that's not likely. however it did happen. the North Sea proved to be a great source of cheap oil rescuing the country from the energy crisis in the 1970s. it's a shame we didn't heed the warnings from the past.

Answer 3

I know the real reasons. First,our gas prices started to escalate quickly after we embargoed Iraqi oil. They could
no longer sell on the OPEC market. This also cut our supply
somewhat,which with any traded commodity,raises the price.
What worsened that effect is when we went into Iraq and invaded them,using these fuel thirsty tanks,bombers,warships
in their gulf and multitudes of Hummers. Wars are expensive and thirsty for fuel and blood. Third problem is all of our domestic refinery problems,mostly in the gulf states that were
hit by major hurricanes in recent years,like Katrina. We still
have refinerys in Louisiana and Texas that were devastated
and are not yet operational again. So the crude oil or raw material is one factor in short supply,but adding to the mess is the fact that gasoline and diesel which are the end-products,and are also commoditys traded on the exchange
board,are also in short supply. Even worse still is that our supply is going down due to these factors,all the while our
demand in North America is only increasing because of our
growing economy and our growing populous. We are also the
biggest most wasteful consumers in the world. Too many Americans still build their 6000 square foot dream homes which are a blackhole of energy consumption.And those same folks often drive 12 mpg Bentleys or 9 mpg Hummers.
And many of these folks run companys who waste and consume resources like the world will end tomorrow.
I wish this country would tax mansion-owners for their wasteful
impact on our limited resources. Make them use solar energy
they can afford it. These rich snobs drive up the cost of these
resources constantly,with their voracious and growing appetite for more,more,more. They won't care until gas is
$25.00/gallon and has to be rationed.

Answer 4

I was listening to the radio a few weeks back, and the AM Talk Show had this expert on gasoline. After some batting back and forth of ideas, this guest speaker said that the price of gasoline was so high due to the stockpiling and controlled release of the product.
hey are producing JUST ENOUGH to get by and are blaming their high prices on various events when in reality they are controlling the market.

And get this. What they are doing ISN'T illegal; however, there is being a bill passed or proposed that will make this illegal.

And that's why gas prices are so high; will they fall below $3? I doubt it.

Answer 5

I simply think that it is supply and demand.To me its like the same thing everyone does with their products, the more people that want them the more the companies can charge. In the case of gas as long as cars run on it we will have to have it so in all actuality they can charge u 6.00 a gallon for it u will buy it if u wanna drive i mean.

Answer 6

The real reason is that there is more demand for gasoline than the current supply.

Probably not unless someone builds a few new refineries or there is a drastic reduction in use.

Answer 7

The real reason is profit, its plain and simple.
The oil companies jack up the price during the bussy season when people are driving alot and their profits go up.
It has nothing to do with government or laws or lacking oil, its pure economics, demand is high, price gets higher.

Just watch the oil stocks and their quarterly earnings, when prices go up the profits are alot higher.

Sure they will go back down just like they always do after summer is over.

Answer 8

The oil companies are too greedy and want to wring us dry of our money!

We should have learned this lesson in the 70's. But we are short attention spanned and stupid.

Ymsorbet stain is just wrong! If the oil companies are the "victims" why are they making Billions a quarter right now. The gas stations are raping us as well. The raise their prices before their supply prices raise and don't lower their prices until their supply prices lower. They make more money on both ends!

Answer 9

Well, gas is being harder and harder to find, we are exhausting our gas supply, the war on iraq... and I really doubt gas prices will drop... they will just keep getting higher... Here in texas every gallon of gas has about a 55 cent tax on it so you do the math...

Answer 10

Basic economics and yes. But you won't see drastically lower prices. I would plan to pay an average of 2.50 to 4.00 for the near future, alot higher then that further out.