Why is Gas so expensive?

Just because it's more expensive elsewhere doesn't mean I'm going to be happy about the gasoline companies making record profits while we are paying more for gas than we ever have, with no sign of price increases slowing down. I haven't bought a car since my Bonneville died, I carpool and bike it. I still think gas companies are full of crap and prices don't need to be as high as they are and rising.

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Originally Posted by Chase13

Why would crude oil prices rise? Only 1% of crude oil, after proccessing, is acually gas. Gasoline is a drop in the bucket for crude oil plants. And to be honest, I havn't read this article and I don't plan on it. I am very happy with the gas prices right now. Gas prices are around $7-$8 in most other countries so I'm grateful for our prices. And plus, if you really hate paying that much for gas, ride a bike, america is fat anyways.

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The price of gas should rise in association to the crude oil price and the cost to refine it. Most of our price increase are related to refineries just cutting back on production. It's not because of the supply, the supply is still there. If the supply wasn't there crude oil prices would go up.

We also need to build more refineries... From what I've read we havn't built a refinerie in thirty years, With that said I don't think it's the longterm answer but we'd be in a better position right now. We need to get off of petro!!!!

Why invest billions in new refineries when we all continue to demand more and more gasoline regardless of how much the price goes up? What incentive do the oil companies have to spend that money? They spend billions just to make gas cheaper for us out of the kindness of their hearts? Yeah right...until demand is actually affected in a significant way by the price of gas, there is no economical justification for expanding refining capacity.

Well if we don't build new refinerie capacity we really need to raise efficiency standard's on all automobiles.

Everyone should know the true reason behind the gas-price increase: I have just started driving, and got a vehicle. This is why. :/

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Originally Posted by Emilio

Well if we don't build new refinerie capacity we really need to raise efficiency standard's on all automobiles.

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Not to pick on you...and I don't know why I am coming back to this topic :P but this sort of attitude is exactly what keeps the people who are making the money fat and rich! If we all continue to wait on "someone else" to make things better who knows if they ever will. I so wish I could ride my bicycle to work but due to the distance the motorcycle will have to do. I realize not everyone can go out and buy or has access to such transportation. But there ARE other things we can do even small things that add up. Heck I am amazed at how much better mileage my car gets when I train myself to rely on the cruise control...and stay at or under 60mph...try it ;P

I have an idea. Something we can all do to make gas prices drop. We can do a nation-wide strike. Everyone just stay home. Don't go to work or leave your house unless you absolutely need groceries. No one will be driving, so no gas will be sold. No demand, no high prices. The economy will be hurt pretty bad after a few days, so the govt. might step in as well. We strike until gas dips to $1.59 per gallon. How's the week of June 25th sound for everyone? I'll do it. No, well we can start a nation wide boycott of all BP-Amoco and Exxon-Mobile companies and products. If thay aren't selling gas they might be forced to lower prices. That's too much work, too. Let's just complain about it until we are paying $8.00 per gallon.

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Originally Posted by PythonWallace

That's too much work, too. Let's just complain about it until we are paying $8.00 per gallon.

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Ha, basically, you're right, that is EXACTLY what's going to happen.

Gas will continue to go up, regardless of how much we complain, and it will stop increasing once it gets so high that we stop complaining and actually DO something that will actually have an affect on the demand for fuel. And I'm not talking about boycotts, government regulation, tax cuts, etc either.

Unfortunately, with the majority of the US population living in rural and suburban area, cutting back significantly on individual energy usage seems to be near impossible. In the area I live, I would not be able to take a bus/train/subway system to get to work, as many people in Europe and Asia can do to dodge their relatively high fuel costs.

IMHO, the solution to the petroleum problem is going to be in the form of a cheaper, renewable, alternate source of energy. Its not a problem of "if" we will come up with an alternative, its more like "when." We could be waiting a while and I see no reason why $10, maybe $15 a gallon gasoline wouldn't have to be realized before that were to happen. There must be economic justification to making the investment to develop that energy; everyone whining about $3/gal gas is a very very far cry from an economic reason for a switch to come into play.

Ok, since I am one of the older members of this site, I will share some wisdom on the price of gasoline.


When I started driving gasoline cost 33 CENTS a gallon. THATS RIGHT THIRTY THREE CENTS!!!!!!!!!!

Due to the idiocy of Jimmy Carter gas prices trippled overnight (literally!).

If you are familiar with inflation, you will know that gas prices today are actually less than they were in 1980. What you could buy with a dollar in 1980 and what you can buy with a dollar today is substantially different.

Remember, the reason for the increase in price is Supply and Demand. The demand for gasoline in Asia is SO HIGH, that they are willing to pay TEN DOLLARS A GALLON!!!

We, here in the USA, have it really good. I am not complaining -- someone might hear my complaint and raise the price of gas to what the rest of the world is paying.