2007-10-08 04:28:37 · 3 answers · asked by Tell It Like it is 2 in News & Events ➔ Current Events
It's called supply and demand. Various environmental laws require the refineries to turn out over 50 different types of gasoline to meet the requirements of those state and local laws. Demand for gasoline has gone up dramatically in the past thirty years with the addition of larger passenger vehicles and an army of vans and delivery trucks who are delivering merchandise and paperwork as a result of the computer revolution and "e-tail". During that same period of time we have not built one new refinery. The first one in three decades is planned for an area in the southern part of South Dakota. But, it will 7 to 10 years before it goes on line, due to the company building it having to go through so many bureaucratic hoops to actually construct and operate it.
Add to that the fact that the demand for gasoline in other parts of the planet has gone up. causing a competition for limited resources. Beijing, the capital of China, had less than two thousand privately-owned vehicles in 1982. Today there are over two and one-half million! Shanghai and Guangchow (Canton) have also seen dramatic growth in autos. In India there are similar growth patterns.
The TV news operations don't mention any of this because it is easier to work the viewer into a froth and hold his attention so the commercials can sell him something.
2007-10-08 05:02:29 · answer #1 · answered by desertviking_00 7 · 0⤊ 1⤋
The same reason stock market prices change so much. The prices of gasoline are set on the commodities markets based on what people think they will bring in the future. Wit such uncertain future there are dozens of reasons to bid up gas and oil. So just like that stock you bought last week that has gone up and down for no apparent reason , so does gas and oil. There are others besides the gas and oil companies that can manipulate the market by manipulating these future contract prices.
2007-10-08 04:50:45 · answer #2 · answered by paul 7 · 0⤊ 0⤋
It is just a game of manipulation, The big oil companies to the sheiks what ever they feel like doing because the public depends on fuels.
2007-10-08 04:40:23 · answer #3 · answered by Union_Dooz 6 · 0⤊ 0⤋