Why are gas prices so high?

Question

$3.19 per gallon??? How are we supposed to pay that?

Answer 1

In the past, prices were kept down by getting Saudi Arabia to pump more oil. That doesn't work anymore as world refining capability is maxed out so pumping more oil doesn't increase supply of gasoline. In the USA, environmentalists have successfully stopped any new facilities from being built or old ones from being upgraded/expanded. In addition, about 50% of the price of gas in the USA is due to taxes. While the USA used hardly any Middle Eastern oil, disruptions in its flow does effect world supply since Europe, China, and Japan get most of their oil from there. Investors have been afraid to back oil exploration and production there due to the rise of radical Islam making the future look even worse.

There are a lot of reasons but it boils down to supply and demand. Demand is exceeding supply so gasoline becomes more valuable.

Answer 2

You may thank the liberals and the eco-freaks. We need to drill oil wells in ANWR and the Gulf coast to get at the huge reserves there. We also need to build new refining plants to process the oil. Why don't we? Because the eco-freaks are anti-oil, anti-technology and anti-American.
They also don't like nuclear energy. It's perfectly OK for us to have thousands of oil, gas and coal fired plants in American that produce millions of tons of toxic waste every year, but nuclear plants which produce more and cheaper energy with only a few hundred pounds of waste are totally unacceptable.
Who needs to pay attention to facts and how the real world works when they have an IDEOLOGY to spew.

Answer 3

Many reasons, but a HUGE one that's not reported much is the shrinking value of the US DOLLAR vs. foreign currencies. Gas is valued in DOLLARS per BARREL, so when the dollar falls, gas prices go up...

Answer 4

We haven't built a new refinery in over thirty years. Our annual consumption of gasoline has gone up dramatically in that same period of time. And the refineries which do exist have to produce over 50 different blends of gasoline to meet the environmental standards in different states and cities. It's the law of supply and demand!

Answer 5

The price of gas should be real low. They had a one day Boycott in here that should have closed three oil companies. HAHAHA

Answer 6

It is simple supply and demand. When demand goes up, so do prices. When supply goes down, prices go up. When demand goes down, so do prices. When supply goes up, prices go down. That is why OPEC tries to limit the supply, to keep prices high.

Answer 7

Thanksgiving is coming up. A lot of people are going to be traveling so they want to stick it to everyone and make as much money as they can.

Answer 8

some say its cuz of damage caused by hurricane katrina. just a thought.

Answer 9

Because they are gas balloons?!

Answer 10

Because they are not so low.