Why do gas prices rise and is there any federal control over the rise?

Answer 1

gas prices rise because Americans are spoiled rotten brats.and yes I'm an American.if people would boycott driving and take public transportation or car pool more there is no real reason for the prices of anything to be as high as they are.but most people want it all and have to try to do better then the next one.SUV gas guzzlers are everywhere.but will people trade them in for something more economic noooooooo they want bigger, better the best .it really sucks.

Answer 2

O.K. First, this country has chosen market capitalism as its default economic system. This means that everything you buy and sell in this market is subject to macroeconomic shocks. If there were a price ceiling on gas, the government would have to subsidize the macroeconomic shock.

The government already does this by allowing oil companies certain tax credits; frankly, if it was truly left up to the market the price of oil would be $5 a gallon. I think another important factor is that refining crude oil is an expensive process. There is no new technology to reduce the cost of the process, which would then reduce the price of gas.

Another alternative is to make hybrid cars the consumer choice. The latter would cut on the demand for gas and would increase the supply which would reduce the price. However, Americans are too stubborn and they hate anything that has electricity.

Answer 3

Gas prices rise due to the basic laws of supply and demand.
There are many other influencing factors that push them up also, but the increased demand created by the new affluence in India and China where literally BILLIONS of people all want automobiles is going to keep those prices rising regardless of ANYTHING the U.S.A. does.
The federal government would be well advised to create automobiles that run efficiently on carbon-free energy sources.
Hydrogen works. It is carbon free. But we have no way of producing it. If we could efficiently break down water into hydrogen and oxygen, we would have the perfect recyclable fuel. Figure our HOW to do that and you'll change the world.
Electric cars would be good, but we must start to build nuclear power plants NOW to come close to meeting the future demands for the electricity.

Answer 4

Here's my theory. The government is controlling the gas prices. The government wants people to move toward hybrid or electric vehicles, or ones that will run on alternative fuel sources. I believe the Gov has incented the auto makers financially to produce these types of vehicles. The only way to force people out of gasoline vehicles and toward fuel efficient vehicles is to make gas expensive. With low gas prices, people will continue to drive gas powered vehicles, and auto makers will lose billions that they & the government have invested in alt-fuel vehicles. Plus, they cannot yet make these vehicles affordable compared to gas vehicles, so the gov is inflating the price of gas to make the two choices even.

I believe it's a government conspiracy that will surface at some point.

Answer 5

Gas is the same as any other good. If more people want to use it, there is less to go around, so the price goes up. Or, if there is less being sold, there is less to go around, so the price goes up.

If the government were to control gas prices (keep them low) you would end up with shortages, since there are too many people who want to use gas and not enough to go around.

Answer 6

i think it's because in the middle east (where we get our fuel) they pick how much an average so much of gas is for us to buy from them, and then we break it down to 'per gallons.' but a gas station can raise the price for profit, so you never really know what the real price of gas really is.
the federal government has control, we actually have enough gas to have for ten years without us having to pay for it, but that's being saved for if ever the middle east decides that they don't want to sell to us any more. which, may likely happen because they threatened us before.