why is the gas so expensive, is this related to the america and iraq war?

1. Huge growth in places like India and especially China. Their oil use is increasing dramatically

2. Lack of refining capacity. Even if we magically doubled our oil supply in this country tomorrow, it wouldn't impact prices because we are already at max refining capacity.

3. Fear of instability in the Middle East. This isn't a real reaction and instead is more like the stock market. People react to what they think or what is predicted rather than what is right now.

4. People still pay the prices and keep driving. Until oil usage drops, prices will stay up.

Its related to supply and demand. Now, some people will say that the companies are greedy based upon what they made. I argue it like this, if you sold 10 cups of lemonade for a profit of $1. Next week you sold 20 cups of lemonade. Should you take $2 profit or should you lower the price to maintain a $1 profit? Either way, you didn't change the price and more people still bought it. So should you lower the price? Lets say the cost of sugar went up so you need to raise the price of lemonade and you sold 10 cups and still made a $1 profit, should you take less money because the price went up? My point is is that if you don't like paying for the price of gas the way it is you should try to drive less. Sure, you have to drive to work and to the grocery store, but you don't have to drive to the mall and back then drive to the resturaunt and back and then drive to the movies and back adn then drive to Target and back. People need to learn to conserve their gas per tank. My wife and I started carpooling last year. We may go through a tank a week, but at least we're not going through 2 tanks a week by driving ourselves in separate cars. IMO, the real reason gas is expensive is because there are more people driving then there ever was in the history of the world, but no new refineries have been built in decades. Supply and demand.

actuality is... human beings will besides the indisputable fact that ought to purchase the oil. area of the rationalization grew to develop into the actuality that having a delightful authorities for oil businesses to barter effective contracts with.... that makes the earnings margin that lots more suitable. yet... The U.S. spent someplace on the point of $3 trillion on the Iraq conflict. Iraq produces some component like $40 5 Billion in oil each twelve months.... so at modern-day expenditures it is going to take 70 years to make that funds decrease lower back..... if each penny grew to develop into earnings. and nobody thinks there is 70 years of oil LEFT in Iraq. yet there is more suitable to it than actually the oil in Iraq. there is likewise something of the middle east.... and if the Iraqi's imagine of the U.S. is easily leaving.... they're delusional.

While the US might think that gas prices are high it is actually catching up to the prices that most other countries pay per gallon for gas. In Canada for example it is $1.27 a litre in some areas, that is over $4.80 a gallon (3.8 litres in a gallon). And some of the gasoline sold in the US is from Canada.

Then there is the US economy, as long as the US dollar drops then the price of oil will go up.

I don't think it is directly relate but is some of it. You would think with the oil in Iraq we could us their oil to help lower prices. I I think the oil companies are sticking it to us. I also feel the government is involved. I think it is funny that oil prices are the highest they have ever been and our President and Vice President are oil guys. Makes you wander. The oil companies are making record profits, so you know the are going to keep the supply low to keep the prices high. I do believe the price of gas and diesel are the cause of our struggles with the economy. This just what I think.

Go check out the price of gas in Europe and Japan.

No the reason gas is so expensive is that the oil companies are refusing to increase production because it will cause prices to come down. They are not in it for the consumer they are in it for their share holders. It's all about money, not about politics.

KPK was dead on with his answer.

Refining and less use is the key to lower prices. Guess what, everyone wants more refineries but they also have that "not in my backyard" mentality. Unless useage drops or more refineries are built expect prices to keep going up.

the war is somewhat responsible but supply and demand is the biggest reason ....the world is using more oil than ever before

Well wars need oil so in a way yes, but why do the oil companies make $120 billion in profits?