Why are gas prices so high?

Is supply actually dwindling? I don't think so (yet). Is flow being hampered by the war. That doesn't really make sense to me. It should be flowing better than ever with new pipelines set up. Are they just charging us more because they can? Because they know we are slaves to it and we will pay it? I think I'm gonna stop driving.

 

You missed half the equation. Here's a hint:

Supply and d____d.

 

High demand, limited supply (refineries running near max production; the industry shifting to fuel oil production for the upcoming winter; a big explosion at a Texas refinery), and speculation on the market due to uncertainty in the Mideast.

The next new refinery in the U.S. isn't going to produce until at least 2010.

The best thing right now is for people to conserve. I know that's considered a dirty word, but it would put some immediate relief on a supply system that's operating at it's max.

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Conserve and push for alternate fuel sources such as ethanol and biodiesel plants.

 

Do what i do and get some fucking solar panels, If five million people did that it would offer some relieve to the energy demand.

 

A Republican Oil Man in the White House.

 

Don't forget, a failed oil man.

 

In the White House? He's always in Texas.

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i thought he was always on vacation

 

Some more stuff. Somewhat dated. Gasoline is no longer $1.90 per gallon. It's now actually close to the inflation-adjusted record of $2.77 a gallon in the U.S.

http://www.gravmag.com/oil.html


"The price of Crude is up - as high as $55 per barrel.

This is because worldwide supply is tight and 1) gasoline demand in the US is up despite high prices - 4.3% more than 2003. Americans simply refuse to conserve. This is not trivial considering that the US, with 5% of the world's population, consumes 45% of the gasoline produced on earth. 2) Gasoline demand is surging in China, where crude oil imports increased 30% in 2003.

Refinery capacity in the US is near its maximum. One refinery in California is to close later in 2004. Oil tanker capacity for trans-oceanic shipping is also 100% reserved for the forseeable future, and shipping costs have nearly tripled [more info].

The US deficit, around $500 billion in 2004, causes the value of the dollar to decline. Because oil is priced in dollars, no matter where in the world it comes from, producers want higher prices in order to maintain their income.

The US Government is buying at these high prices supplies for the strategic petroleum reserve. A minor impact, but some.

Local requirements for special gasoline blends to meet environmental regulations result in smaller batches, which are more expensive for refineries to produce. Applies especially to California.

Costs reflect distance from refineries (transportation cost). In the US, 50% of gasoline is refined in the Gulf Coast.

Variations reflect local taxes. Federal excise tax on gasoline is about 19¢ per gallon; state tax averages about 23¢ per gallon; in California there is an additional 7.5% sales tax.

Economic woes in Venezuela are impacting US imports more than problems in the Middle East. US imports from Venezuela were down 19% in 2003, and Venezuela, Mexico, Canada, and Saudi Arabia are the US's main suppliers, normally at about 15% each — but Venezuela in 2003 only provided about 12% of our imports (see table above).

Any time there is a problem with a pipeline or refinery, it can impact the supply of gasoline at least in local markets, and the price can spike.

Credit card fees paid by retailers amount to about 3.5%, or 7 cents a gallon at $2.00 per gallon. This is more than enough to eliminate all profit for the retailer, and in many cases results in an actual loss of several cents per gallon -- absorbed either through increased pump prices or in other elements of a retailer's business. Retailers with no other sources of profit may go out of business, further restricting ability to deliver gasoline. So don't blame the corner gas station -- even the company-owned ones. The latter may absorb such losses through profits elsewhere in the system, but a loss is still a loss.

Even with all of this, the true price of gasoline has fallen more than 40% from its inflation-adjusted price of $2.77 per gallon in 1981. And in the US, at $1.90 per gallon, we pay about one-third of the price western Europeans and others have paid for many years. Icelanders pay about $6.12 per gallon."

 

mobil exxon or exxon mobil, whatever, recently made their largest profits in recorded history. what does that tell you?

 

Cheapest gas has been around here (Southen Ontario) is about $4.82 a gallon. No good reason for it. Oil companies want to make more money, pure and simple.

 

holy fuck! what was it a year ago?

 

that and his love of saudi princes who supply it.

and damn opec

 

opec? which is that? for some reason i'm thinking of worker's rights, but i think that's osha, or is that the medical one? i am so confused!

 

OPEC - Organization for Petroleum Exporting Countries
OSHA - Occupational Safety and Health Administration

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i'm not paying these gas prices...i'd rather walk or ride my bike or take public transportation around than pay those prices. but i'm lucky cuz i live in boston so everythign is around me...

prices around here just went up over $2.50 for regular....fuck that!

 

Thats probably some of the cheapest petrol in the world right now. I can't recall gas selling for the price in Canada in my lifetime.

Last year gas was selling for ~3.78 a U.S. gallon.

 

are you serious? i know it's about $3 right now, but $5? i remember one fall when gas was under $1/gallon! wtf!?! i can't afford to drive to work to make money so that i can drive... this is bullshit!

 

RE: OPEC - Organization for Petroleum Exporting Countries

No, Organization for Production of Economic Crisis.

You can say "well I don't drive" but consider this - the cost of EVERYTHING you buy arrives on trucks. More money for gas = higher shipping fees = higher cost.

 

Nice play on words.