The price of shoes or chips or cheeseburgers dont rise everyday….. why gas?
Let me put it simply. Oil companies are making record profits right now, and we keep buying gas even though it is as expensive as it is. Sales haven’t gone down from rising prices so the oil companies will keep making gas pricier and pricier until sales go down dramatically. Until then, if we all keep buying gas, you can be sure the prices will continue to go up.
If Cheeseburgers went up that much we’d all stop buying them and the prices would go down again, see? We’re not reliant on cheeseburgers like we are on gas. There is only one way to power our vehicles (for the most part) but no only one way to feed ourselves. (cheeseburgers)
Plus, gas is a non renewable source, so that doesn’t help prices either. The more rare something becomes the higher its price.
It doesn’t help that a lot of the middle eastern oil wells are completely shut off right now. They have us by the balls because that’s exactly what they want to do to us.
A Barrel of Cruede oil makes 42 gallons of gasoline. This stuff is the primary ingrediate in our fuel. When it goes up to $130 a barrel, a good $3.09 of each gallon goes directly into buying the Cruede.
We are only at 85% of capacity with refineraries. The oil company executives testified today that refinerary capacity is NOT the issue – even though we haven’t built one in a very long time.
When our Government becomes financially responsible with our tax money – in other words…. they spend only what they collect — then the dollar will increase in value. When that happens, the price of a barrel of oil will come down. For countries that have not had such a large fall in currency value, there have not been large increases in gasoline prices.
Another factor to the increase in prices is the competition from other countries needing oil. 1 in every 70 people in China have a car now. This is a big increase, and it’s increasing rapidly. Imagine if they have what the US has. In India, similar results. Our population is a mere 301 million as compared to over a Billion for each of these two countries. When their percentage of people requiring energy goes up just a little, it’s a BIG increase in demand on the world oil supplies.
Because it can. As long as people keep paying for it it will go up.
i agree with