Why are gas prices keep going up and what can happen if they get to high?

Question

I have been woundering about this problem with gas prices and it seems that every day the prices keep going up.
So when I get a car at the age of 18 what do you think will happen to the prices?

Answer 1

it's because the US have to import its oil. we can start drilling on the coast of california and then the prices well go down, but by doing that we upset natural stuff which can cause more hurricanes in that area. well at least thats what my biology teacher told me :)

Answer 2

Gas prices keep going up because the price of oil keeps going up. It's possible, maybe even likely, that the prices are higher than the situation would require. But that doesn't change the fact they are going up. As the prices rise, you can expect to pay more for virtually everything. Including things you might not expect like plastics. There are a huge number of products that have some crude oil derivative and all those products will go up. And virtually every company will have higher costs from their suppliers - whether it's simply added transportation costs or the cost per item.

There isn't much you can do to prevent the problem. About the only thing you can do in your personal life is trade in for a more fuel efficient car and reduce your energy costs at home and work.

Answer 3

It's crazy but people have been wondering this since the gas has gotten over $1 and now it's over $3 which everyone was saying would never happen. So I am worried that the answer to your question is probably nothing. Nobody has done anything yet except complain and keep buying gas probably because nobody thinks they can do anything. Hopefully someone will come up with something, you'd think some politics could come up with something about this price gouging.

Answer 4

It is supply vs demand. Right now there is much more demand each day then there was the last. Look for example how many people in China are moving from ag areas to cities to make a better life. USA has better prices than much of the rest of the world and has for years. Problem is the tree huggers. Why should China drill in the gulf and not us. Huggers are nuts. Check into Anwar and the new finds in the Dakotas. If we will let ourselves drill our own oil and actually keep it here it would do much to bring down prices but this will also take years. But this would be a start and the longer we wait the worse it will be for us.

Answer 5

1. We have not built a refinery in the U.S. in over thirty years.
2. There is a new one planned in the southern half of South Dakota. It will be seven to ten years before it is completed because of all the regulatory hurdles which have to be cleared.
3. In those thirty years the use of motor vehicles has increased dramatically, along with a quantum leap in the number of delivery vans and trucks because more is being pruchased on the web and through catalog sales, along with documents moving via express mail outlets.
4. There is a law of supply and demand. The less the supply, the higher the price. The higher the demand, the higher the price.

Answer 6

A big part of the problem is that the dollar keeps losing value relative to other currencies. The U.S. dollar is worth less now than even the Canadian dollar.

Since oil prices are quoted in U.S. dollars, the $ price of oil has to go up as the dollar keeps getting weaker so that the sellers of oil (i.e. Middle East and Russia) can continue to have the same purchasing power in their home countries.

Why does the dollar keep getting weaker? Ask your president who keeps devaluing our currency by borrowing money from other countries faster than any other president except Reagan.

Answer 7

The high prices are currently being driven by trading of oil futures on the stock exchange. Eventually there'll be a bust. Either way, high prices ultimately will be painful, but will encourage consumers to be more responsible and purchase more economical vehicles. This will ultimately drive the price of fuel down, since demand will go down.

Answer 8

A lot of people like to blame Bush for the gas prices, but he did not do it. about 30 or so years ago a democrat held congress passed the Clean Air Act, and this gave the E.P.A. the right to with hold permits for the construction of new gas refineries. and boy did they. the last refinery to start up was in 1973. The E.P.A. has not allowed another refinery to be built since then, and other refineries have been shut down, so now we have fewer plants supplying many times the autos with gas. The reason gas prices are going up, is the basic law of supply and demand. We burn it faster than they can make it.

Answer 9

I think it is because our government keeps buying gas from the other countries, when we have plenty right here.
They are also using taxes to help the immigrants.
Something has to happen. We are going to have to get giant raises, or it will have to come down, or they start drilling here for the oil and gas. We won't be able to afford a car or gas at this rate..I guess we might have to go back to the horse and buggy days....xx

Answer 10

Gas prices will continue to rise. Part of the reason instability in the Middle East with Iraq, Iran, etc. Part of it is the greed of the mega giant ExxonMobil. I'm sure they will have record profits again this year.