Why are gas prices so high?

There are a number of factors that have been driving gas prices up:

1) Increased demand for oil products in China and India

2) Concern over Iran's nuclear program and its potential to disrupt international petroleum trade has recently caused a sharp increase in the price of oil

3) Decreased output of gasoline from oil refineries in the southeast U.S. (thanks to hurricane Katrina)

4) The new requirement that ethanol be used as an additive in gasoline. Bush temporarily suspended this requirement, which might bring the price down by a few pennies.

5) Increased demand for gasoline in the U.S. during the 'traveling' months (mid-spring to early fall).

Well those are just some of the bigger factors. Hope this helps!

The Oil Prices are inflated by the Futures Traders, and the Oil Companies are incouraging the prices. Basicly oil is over twice as high in the US as it is at the Docks in the middle east. OPEC has stated that they have not raised any prices in the last 3 years. Basicly all Scalpers taking proffit off of the top.

But on a Good Note Some of the Big People on Wall Street, are putting the futures of oil down at $40 within the next 12 months. There is just more production at these prices than the U.S Consumers are useing.

Several reasons and plenty of blame

1. China and the rest of the world are now using more oil, which causes more demand which in turns raises prices.

2. Government Taxes, the Federal Tax on gas is .49 per gallon. Then you ad State (in Ga its .11) Then City and County Taxes (.06 were I live)

3. Oil Company Profits, while oil company make one of the smallest percentage of profits of any major companies (between 2-8% depending on who you ask) it sells by far the most product every day. About 330 million gallons a day. So even at 2% you are looking at about 6.6 million in profit a day.

4. Change of distribution - 20-30 years ago, gas stations made the bulk of their money on repairs not Gas. The average profit per gallon was about .05 cents. Now since most cars are serviced at Dealers and repair only shops the average gas station now makes between .15-.25 per gallon.

5. Environmentalist - If in 94 when drilling additional oil in Alaska was first put in legislation and Clinton would have signed it. We would be need about 20% less oil then today. In addition there has been no new off shore drilling allowed in California or Florida. As well as several mid western states were we know there is oil. Those resources alone would remove our need for foreign oil. There has been no new refineries built in over 30 years, therefore even if the supply of oil was greater we could not refine more then we all ready are. Add to that no new Nuclear power plants built in over 15 years which would have reduced the some of the need for oil.

6. Stock Market - The price of oil is based on speculation trading not actual cost drilling. To be honest I think this is where the real gouging is going on. (Besides the taxes) The buyers make their purchases in advance of the oil even being drilled. So when you hear the price of oil is $75 a barrel that is not for the oil being drilled now. The oil companies set their price on one of two things, the current cost or the speculated cost. Of course they go on the higher number as any business would do. Also OPEC sees these numbers and that lets them adjust their rates higher based on the speculation.

However to blame the President is ludicrous because there is little he can do to effect the price during his term. He has proposed additional drilling every year. Yet Congress has yet to advance his energy bill including it. He can not suspend the tax only the congress can. Blaming the war is not a legitimate claim either. Because the Iraq oil fields are for the first time since 90 selling oil on the full open market we have more oil available now.

Because oil supply has peaked - this means supply no longer can keep up with demand. People tend to blame oil companies for rising gas prices - and yes, they ultimately are raising them. However, it is important to note that people need to understand that the fact that oil is going to run out is a real fact and that it will have devastating effects. By raising gas prices, people might actually start seeing that there are alternatives. And hybrid cars are no alternative because one hybrid takes something like 70 barrels of oil to make. Gas prices will only continue to rise as supply goes down and demand goes up. Please use public transit or walk!

Note, people seem to be blaming George Bush - gas prices aren't just high in the United States, they're high all over the world.

Also, in Canada, we're paying roughly $1.05 a litre. With, 1 gallon being nearly 4 litres, we're paying $4.00 a galon. Please stop complaining.

1-Unrest In Iran

2-China and India because of their economic growth need more gas hence the supply and demand theory

3-We didn't take the step years ago to move away from oil

4-Bush and Cheney not regulating or monitoring the oil industry that they have been in for years.

5-Oil companies in US don't care about hard working Americans. They are about profit. Oil companies had the largest quarter profit in the history of any US Biz. Why did a retired oil men get 400 million bones. That's why you are paying for gas cuz.

6-Some say people don't want anything related to oil drilling, refineries etc.. in their back yards so they turn all new oil opportunities and proposals down.

7-Too many SUV's. I don't drive mine anymore

Here's what my boys at the gym said:

8-Barry Bonds used a mix of the cream, ethanol and unleaded gas instead of steroids.

9-Angelina and Brad traveling in dat jet from country to country adopting kids. They got like 98 kids now. They adopted my cousin Boo Boo and he wasn't even up for adoption.Have some damn babies ya wasting gas!

10-Shakira shaken her big ole booty just made gas go up.

because they CAN be. we allow the big 3 gas companies to set any price they want, they have more gas than they know what to do with, but as long as they can give a reason for high prices, then they will charge whatever they want. it is basically a polyopoly if you will. 3 companies in cohortes to drive up the bottem line price as much as possible.

It does not help that our very own president OWNS a f*ckin oil company and will allow the prices to rise, because he will profit from it.

it may seem a conspiracy theory, but you have to look into it yourself. then again, why should we trust ANY information we are able to get, the government is much like tabloids, you take a picture of someone who looks like brittany spears taking a sh*t, and we are led to believe its britanny spears actually taking a sh*t

It is a combination of things. The end result is that oil companies are posting record profits. The consumers and our economy (because we will not be able to buy as much...because we have to spend so much more on gas)are suffering because of the greed of the oil companies. Congress is thinking about a $100.00 tax credit to try and ease our suffering. Like a $100.00 will help. Do these people have any concept of reality? NOT!

Here is a link to an article posted on CNN it has a lot of different information:http://www.cnn.com/2006/POLITICS/04/28/congress.oi...

Supply and Demand

People are desperate enough to pay the price. As soon as people stop buying gas, supply goes up, no more shortage, meaning gas stations want to get rid of their gas more readily-> lower prices

Supply and demand! Plus the government is getting more profit out of the gas prices...

Because of the world's growing demand for oil, and less supply, which drives up the prices. India and China are becoming more dependent upon oil in addition to the U.S, which is taxing the reserves. Furthermore, a new additive (ethanol) is required for the fuel in the U.S., and suppliers are worried that they will not be able to produce enough ethanol to meet consumer demand for gasoline, which also drives up prices. It's all supply and demand.