Why do gas prices go up every year despite which party is in charge?

Question

Does demand for gasoline go up or down every year?
Does production of gasoline go up or down every year?
(Keep in mind, we haven't built a refinery in the US since the 70s.)
Did you know that foriegn countries are now contracted to refine gasoline for the US?
Have you noticed that when prices spike, it's because a refinery has gone offline for some reason?
Why can't we build refineries?

It's simple supply and demand. It's not a conspiracy, except for those who want to use it for political gain.

BTW this stuff is all over the internet. If you want links go find them.

Answer 1

1. Refineries switch from winter-blend to normal and back every year.
2. Consumer demand rises in the summer months as people drive more.

Answer 2

Where Gasoline is Made -- Although no new refineries have been built in the U.S. since the 1970s, refinery capacity has increased significantly in recent years, from 15.3 million barrels per day (mbd) in 1996 to 17.4 mbd in 2006, about the same effect as building 17 average-sized new refineries. This growth is occurring on existing refinery sites as a result of adding capacity, debottlenecking facilities, modernization and environmental upgrades -- at a cost of $5 billion to $7 billion in new investment annually.

Answer 3

Refineries would definitely help. The TRUTH is that there are memos which have been going through ALL the main gas companies (I think Exxon, Chevron and Texaco) and they came up with a way to be able to price gouge under the guise that there wasn't enough refineries...and to try to shut down more so they could make prices rise.

Answer 4

They go up every year in the summer because refineries have to shut down to change the type of mixture of gasoline they are making, leading to increased demand for gasoline and less supply...neither party has much control over gas prices.

Answer 5

You nailed it.
I'm 46.
I know that's not old, but it's old enough to notice the trend that everything goes up in price as time marches on, places get built, people get born...

With every new technological invention, I just patiently wait for the thing to get popular... then for the competition to spring up, then I buy the product when it is affordable. Got my DVD player at Wal-Mart, on layaway, for 70 dollars... Currently waiting for the price of iPOD and iPOD lookalikes to come down.

Supply and Demand is exactly the answer.

EDIT: Gas prices have gone up nonstop, not just for the last 6 years... but for the last 40 years.

Answer 6

Like they say, there is less oil and more demand, therefore higher prices. The despicable politicians use natural economic forces to smear the opposition, and thanks to our poor educational system, many people believe them.
We can't build more refineries because of the environmental regulations, and NIMBYism.

But I did read they are starting to build a refinery in South Dakota to process oil from Canada.

Answer 7

References to the petroleum prices are usually either references to the spot price of either WTI/Light Crude as traded on the New York Mercantile Exchange for delivery in Cushing, Oklahoma; or the price of Brent as traded on the Intercontinental Exchange for delivery at Sullom Voe. The price of a barrel (which is 42 gallons) of oil is highly dependent on both its grade (which is determined by factors such as its specific gravity or API and its sulphur content) and location. The vast majority of oil will not be traded on an exchange but on an over-the-counter basis, typically with reference to a marker crude oil grade that is typically quoted via pricing agencies such as Argus Media Ltd and Platts. For example in Europe a particular grade of oil, say Fulmar, might be sold at a price of "Brent plus US$0.25/barrel" or as an intra-company transaction. IPE claim that 65% of traded oil is priced off their Brent benchmarks. Other important benchmarks include Dubai, Tapis, and the OPEC basket. The Energy Information Administration uses the Imported Refiner Acquisition Cost, the weighted average cost of all oil imported into the US as their "world oil price".

Answer 8

You have a short memory. Gas prices were LOWER(correcting for inflation) when Clinton left office than when he started. The rise in prices has all been on Bhsh's watch.

As to why--is anyone--even the cons--under any illusion that Bush isn't owned by the oil companies?

Answer 9

Because promising cheaper gas and keeping the promise are 2 very different things. Not to mention there has not been a new refinery built in the US in about 30 years because either Federal guidelines make it difficult to make one finacially practical or no one wants one in their back yard.

Answer 10

supply and demand is the key and OPEC is not shy about adjusting the supply side to keep the price up. over the past year at least one time, OPEC announced they would be cutting production to raise the price of a barrel of oil.