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Why are gas prices so high?

SuzzaneO
Posts: 47
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4/15/2011 9:11:26 AM
Posted: 5 years ago
Filled up my tank this morning at the gas station - $80 for a tank of gas. $4.09 a gallon. What makes gas prices increase as we head toward summer months? And aside from inflation, why are the significantly more and more expensive every year? If I wasn't worried about the safety of me and my children, I'd drive a smart car or a scooter.
lewis20
Posts: 5,093
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4/15/2011 9:40:27 AM
Posted: 5 years ago
Speculation
"If you are a racist I will attack you with the north"- Abraham Lincoln

"Do not wear clothing woven of two kinds of material" - Leviticus 19 19

"War is a racket" - Smedley Butler
Cody_Franklin
Posts: 9,483
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4/15/2011 10:37:33 AM
Posted: 5 years ago
At 4/15/2011 9:53:28 AM, Sieben wrote:
Gas prices actually look like they're flat over 6 years.

http://gasbuddy.com...

I dunno. Maybe I'm reading it wrong, but if you measure it in peak-drop-sortofrising-rinse-repeat, then you might be willing to accept that the magnitude of the cycle increases over each iteration. I mean, locally, gas prices ARE rising--on a macro level, they're rising as part of a pricing cycle, with the only difference being that this rise is greater than each previous rise.
Greyparrot
Posts: 14,212
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4/15/2011 11:13:15 AM
Posted: 5 years ago
At 4/15/2011 11:08:13 AM, darkkermit wrote:
Revolution in middle east is creating fear that gas supply over there will be cut off.

This.

It is funny how all of a sudden, Obama is getting pressure to fix the economy and do something about oil prices, when on the campaign trail, he thought gas prices were too low and we consumed too much. If he sticks with UN resolutions, the Libyan unrest could drag on for years and years. Violence and rebellion have a way of crossing borders in the middle east, so enjoy these glory days when you can get gas for as cheap as 4 dollars.
reddj2
Posts: 239
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4/15/2011 7:31:39 PM
Posted: 5 years ago
the funny thing is people b!tch about gas prices while they drink Starbucks and expensive energy drinks
its called managing your money
get an older car
http://www.mpgomatic.com...
TheAtheistAllegiance
Posts: 1,251
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4/16/2011 7:20:19 PM
Posted: 5 years ago
I'd say there are three main reasons to the rise in gas prices -- increasing demand in China, India, and other nations undergoing industrialization, devaluing currencies around the world, which motivates investors to hold money in commodities, including gasoline, and of course the speculative fear surrounding the situation in Libya and other parts of Northern Africa/ME.

Also, these gas prices are the highest they've been in 30 years:

http://www.randomuseless.info...
lewis20
Posts: 5,093
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4/25/2011 12:28:25 PM
Posted: 5 years ago
Oh and we of course can't forget the 18.4¢/gal Federal Excise tax on gasoline.
Take into account the average state tax on gasoline and we pay...
47¢ per gallon of gas to taxes.
so even at 4 dollars a gallon, ~12% of the cost can be attributed directly to taxes.
"If you are a racist I will attack you with the north"- Abraham Lincoln

"Do not wear clothing woven of two kinds of material" - Leviticus 19 19

"War is a racket" - Smedley Butler
Greyparrot
Posts: 14,212
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4/25/2011 3:05:39 PM
Posted: 5 years ago
At 4/25/2011 12:28:25 PM, lewis20 wrote:
Oh and we of course can't forget the 18.4¢/gal Federal Excise tax on gasoline.
Take into account the average state tax on gasoline and we pay...
47¢ per gallon of gas to taxes.
so even at 4 dollars a gallon, ~12% of the cost can be attributed directly to taxes.

That's actually a low tax comparatively.
lewis20
Posts: 5,093
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4/25/2011 6:45:09 PM
Posted: 5 years ago
At 4/25/2011 3:05:39 PM, Greyparrot wrote:
At 4/25/2011 12:28:25 PM, lewis20 wrote:
Oh and we of course can't forget the 18.4¢/gal Federal Excise tax on gasoline.
Take into account the average state tax on gasoline and we pay...
47¢ per gallon of gas to taxes.
so even at 4 dollars a gallon, ~12% of the cost can be attributed directly to taxes.

That's actually a low tax comparatively.

Compared to Europe and some other countries, but in general 50 cents a gallon is a stiff tax when you fill up.
"If you are a racist I will attack you with the north"- Abraham Lincoln

"Do not wear clothing woven of two kinds of material" - Leviticus 19 19

"War is a racket" - Smedley Butler
lewis20
Posts: 5,093
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4/27/2011 5:15:36 PM
Posted: 5 years ago
Bernanke in his press briefing today blamed raising gas prices on two things.
emerging markets and disruption in supply through the uprisings in north africa and the middle east.
He fails to mention part of the problem is that people are putting their money into commodities like oil as a way to keep their money safe from the impending inflation that is already hitting us as a result of the Feds policies.
Also the rebellions in north africa and the middle east effect a very small portion of the total oil produced in the world.
"If you are a racist I will attack you with the north"- Abraham Lincoln

"Do not wear clothing woven of two kinds of material" - Leviticus 19 19

"War is a racket" - Smedley Butler
Greyparrot
Posts: 14,212
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4/27/2011 5:24:03 PM
Posted: 5 years ago
At 4/27/2011 5:15:36 PM, lewis20 wrote:
Bernanke in his press briefing today blamed raising gas prices on two things.
emerging markets and disruption in supply through the uprisings in north africa and the middle east.
He fails to mention part of the problem is that people are putting their money into commodities like oil as a way to keep their money safe from the impending inflation that is already hitting us as a result of the Feds policies.
Also the rebellions in north africa and the middle east effect a very small portion of the total oil produced in the world.

Oil is a horribly risky commodity. The demand fluctuates wildly along with supply.
nonentity
Posts: 5,008
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4/27/2011 10:13:30 PM
Posted: 5 years ago
At 4/15/2011 9:11:26 AM, SuzzaneO wrote:
Filled up my tank this morning at the gas station - $80 for a tank of gas. $4.09 a gallon. What makes gas prices increase as we head toward summer months? And aside from inflation, why are the significantly more and more expensive every year? If I wasn't worried about the safety of me and my children, I'd drive a smart car or a scooter.

What kind of car do you drive? :s

I don't know how much a gallon is... roughly 4 litres right? Gas here is about $1.30 per litre and it costs me like $40 to fill my tank, I think. I've never run on empty so I might be off.
chickenquiff
Posts: 15
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5/2/2011 9:43:21 AM
Posted: 5 years ago
At 4/27/2011 10:13:30 PM, nonentity wrote:
At 4/15/2011 9:11:26 AM, SuzzaneO wrote:
Filled up my tank this morning at the gas station - $80 for a tank of gas. $4.09 a gallon. What makes gas prices increase as we head toward summer months? And aside from inflation, why are the significantly more and more expensive every year? If I wasn't worried about the safety of me and my children, I'd drive a smart car or a scooter.

What kind of car do you drive? :s

I don't know how much a gallon is... roughly 4 litres right? Gas here is about $1.30 per litre and it costs me like $40 to fill my tank, I think. I've never run on empty so I might be off.

You guys are lucky,we pay upto £1.40 per litre an given the exchange rate between dollar and pund, we pay alot more than you guys.
Still, im here moaning that I pay £1.40 for a litre of fuel but yet I paid £1.95 for a litre of water in the station!!
ROFL!!
WTF..... water is more expensive than fuel!!
nonentity
Posts: 5,008
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5/2/2011 10:11:44 AM
Posted: 5 years ago
At 5/2/2011 9:43:21 AM, chickenquiff wrote:
At 4/27/2011 10:13:30 PM, nonentity wrote:
At 4/15/2011 9:11:26 AM, SuzzaneO wrote:
Filled up my tank this morning at the gas station - $80 for a tank of gas. $4.09 a gallon. What makes gas prices increase as we head toward summer months? And aside from inflation, why are the significantly more and more expensive every year? If I wasn't worried about the safety of me and my children, I'd drive a smart car or a scooter.

What kind of car do you drive? :s

I don't know how much a gallon is... roughly 4 litres right? Gas here is about $1.30 per litre and it costs me like $40 to fill my tank, I think. I've never run on empty so I might be off.

You guys are lucky,we pay upto £1.40 per litre an given the exchange rate between dollar and pund, we pay alot more than you guys.
Still, im here moaning that I pay £1.40 for a litre of fuel but yet I paid £1.95 for a litre of water in the station!!
ROFL!!
WTF..... water is more expensive than fuel!!

Haha is that typical? I've heard people say that here also, but a typical bottle of water (if you don't buy a case) is one dollar. So gas is still more expensive.
Austin96
Posts: 56
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5/3/2011 3:05:24 PM
Posted: 5 years ago
Gas prices will go down temporarily, but they'll sky rocket again. Don't worry, expensive oil is here to save us....always.
A man can no more diminish God's glory by refusing to worship Him than a lunatic can put out the sun by scribbling the word, 'darkness' on the walls of his cell.
Austin96
Posts: 56
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5/3/2011 3:06:31 PM
Posted: 5 years ago
At 4/15/2011 9:11:26 AM, SuzzaneO wrote:
Filled up my tank this morning at the gas station - $80 for a tank of gas. $4.09 a gallon. What makes gas prices increase as we head toward summer months? And aside from inflation, why are the significantly more and more expensive every year? If I wasn't worried about the safety of me and my children, I'd drive a smart car or a scooter.

It has nothing to do with the season, but rather the instability in the middle east. OPEC is also not very fond of the United States
A man can no more diminish God's glory by refusing to worship Him than a lunatic can put out the sun by scribbling the word, 'darkness' on the walls of his cell.
askbob
Posts: 7,254
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5/4/2011 11:00:25 PM
Posted: 5 years ago
At 5/3/2011 3:06:31 PM, Austin96 wrote:
At 4/15/2011 9:11:26 AM, SuzzaneO wrote:
Filled up my tank this morning at the gas station - $80 for a tank of gas. $4.09 a gallon. What makes gas prices increase as we head toward summer months? And aside from inflation, why are the significantly more and more expensive every year? If I wasn't worried about the safety of me and my children, I'd drive a smart car or a scooter.

It has nothing to do with the season, but rather the instability in the middle east. OPEC is also not very fond of the United States

No it does have to do with the season numbskull. More Demand = Higher Prices

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nonentity
Posts: 5,008
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5/4/2011 11:03:57 PM
Posted: 5 years ago
I don't get why, as the Canadian dollar goes up, gas prices also go up for Canadians? Is that true for the American dollar as well? Why?
lewis20
Posts: 5,093
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5/5/2011 10:15:36 AM
Posted: 5 years ago
At 5/4/2011 11:03:57 PM, nonentity wrote:
I don't get why, as the Canadian dollar goes up, gas prices also go up for Canadians? Is that true for the American dollar as well? Why?

It's usually the opposite, the American dollar is tanking so you can't buy as much for a dollar.
"If you are a racist I will attack you with the north"- Abraham Lincoln

"Do not wear clothing woven of two kinds of material" - Leviticus 19 19

"War is a racket" - Smedley Butler
djsherin
Posts: 343
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5/5/2011 10:40:37 AM
Posted: 5 years ago
It depends what kind of depreciation your talking about. Against other currencies the dollar has taken a beating, but that reflects the supply and demand conditions for the US dollar on the foreign exchange market, not the purchasing power of the dollar domestically (which has changed much -officially- in the last couple years as measured by the CPI).
nonentity
Posts: 5,008
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5/5/2011 8:12:46 PM
Posted: 5 years ago
At 5/5/2011 10:15:36 AM, lewis20 wrote:
At 5/4/2011 11:03:57 PM, nonentity wrote:
I don't get why, as the Canadian dollar goes up, gas prices also go up for Canadians? Is that true for the American dollar as well? Why?

It's usually the opposite, the American dollar is tanking so you can't buy as much for a dollar.

So as your dollar goes down gas prices go up? That makes sense to me.

But as our dollar goes up, gas prices go up, and we also produce gas. So that seems counterintuitive to me :/ I never took econ so I'm a complete noob (even though I work for a bank LOL).
lewis20
Posts: 5,093
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5/5/2011 8:19:01 PM
Posted: 5 years ago
At 5/5/2011 8:12:46 PM, nonentity wrote:
At 5/5/2011 10:15:36 AM, lewis20 wrote:
At 5/4/2011 11:03:57 PM, nonentity wrote:
I don't get why, as the Canadian dollar goes up, gas prices also go up for Canadians? Is that true for the American dollar as well? Why?

It's usually the opposite, the American dollar is tanking so you can't buy as much for a dollar.

So as your dollar goes down gas prices go up? That makes sense to me.

But as our dollar goes up, gas prices go up, and we also produce gas. So that seems counterintuitive to me :/ I never took econ so I'm a complete noob (even though I work for a bank LOL).

Ya I don't know what the deal is, Canada is the biggest importer of oil to the U.S. so maybe our prices are related to each other.
"If you are a racist I will attack you with the north"- Abraham Lincoln

"Do not wear clothing woven of two kinds of material" - Leviticus 19 19

"War is a racket" - Smedley Butler
cindydee
Posts: 1
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5/8/2011 11:47:18 PM
Posted: 5 years ago
At 4/15/2011 9:11:26 AM, SuzzaneO wrote:
Filled up my tank this morning at the gas station - $80 for a tank of gas. $4.09 a gallon. What makes gas prices increase as we head toward summer months? And aside from inflation, why are the significantly more and more expensive every year? If I wasn't worried about the safety of me and my children, I'd drive a smart car or a scooter.

The reason why they are so high, in my opinion, is due the fact the oil companies are greedy. They say they are speculating about another war in the Middle East involving Libya, Lebanon, and Syria, but these are excuses. There is always an excuse; hurricanes, terrorism, unrest in the Middle East, etc. These have always been present; the difference is they now figured out they have an excuse. Good old fashioned greed at its best.

I have been in the Oil Field for several years; I know all about it.
Cindy Dee
lewis20
Posts: 5,093
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5/9/2011 8:45:24 PM
Posted: 5 years ago
At 5/8/2011 11:47:18 PM, cindydee wrote:
At 4/15/2011 9:11:26 AM, SuzzaneO wrote:
Filled up my tank this morning at the gas station - $80 for a tank of gas. $4.09 a gallon. What makes gas prices increase as we head toward summer months? And aside from inflation, why are the significantly more and more expensive every year? If I wasn't worried about the safety of me and my children, I'd drive a smart car or a scooter.

The reason why they are so high, in my opinion, is due the fact the oil companies are greedy. They say they are speculating about another war in the Middle East involving Libya, Lebanon, and Syria, but these are excuses. There is always an excuse; hurricanes, terrorism, unrest in the Middle East, etc. These have always been present; the difference is they now figured out they have an excuse. Good old fashioned greed at its best.

I have been in the Oil Field for several years; I know all about it.

Greed is good.
"If you are a racist I will attack you with the north"- Abraham Lincoln

"Do not wear clothing woven of two kinds of material" - Leviticus 19 19

"War is a racket" - Smedley Butler
juvanya
Posts: 613
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5/11/2011 12:46:56 AM
Posted: 5 years ago
The Fed is printing too much money (inflation) and instability in the Middle East. Dwindling supplies/peak oil are minor, but relevant factors.