Not looking for any conspiracy theories, but does anyone REALLY know what drives the price of gas up or down?
438956
It used to be OPEC but as they now account for only 40% of supply (and 51% of the traded market) then it could be argued that they don't, though OPEC has a large influence on the price through witholding or increasing supplies. The days when OPEC would fix the price are gone\n\nOil futures and options contracts are increasingly used to price the physical stuff. And as traders are nervous to political risk and oil is located in "difficult" countries, then any adverse news will force up the price to discount the perceived additional cost of getting the stuff out of those 'difficult' countries. So everytime there is 'bad' news about Venezuala, Iraq, Iran, Russia or Saudi Arabia, the traders mark up the price on the exchanges and we pay more at the pump
360639
I feel like I've explained this so many times.\n\nHere are the very basics: http://answers.yahoo.com/question/;_ylt=AsWuQtNGN4MOLLzL5ebfcGsjzKIX?qid=1006042124751\n\nIf your costs go up and you always pass on a 10% markup, of course nominal profits are going to go up.\n\nI assume you're familiar with net margins.\n\nEveryone likes to use Exxon as an example while making up random numbers to support their arguments again Exxon, so I'll use that also.\n\nI have no idea how you came up with 100% increased profit.\n\nThe quarterly data is here: http://finance.yahoo.com/q/is?s=XOM\n\nThe yearly data is here: http://finance.yahoo.com/q/is?s=XOM&annual\n\nExxon typically floats around 5-10% on their margins if you look back at all the old annual reports for the last 20 years.\n\nThe breakdown for the price is here: http://money.howstuffworks.com/gas-price.htm\n\nThis is a bit outdated even though there's the explanation.  A more up-to-date picture is here: http://tonto.eia.doe.gov/oog/info/gdu/gasdiesel.asp\n\nThey're grossly adjusting that last 4%, eh?\n\nEdit: People *love* that 400M golden parachute.  Go back to their income statement above.  Off 370B in sales, 400M is less than .1%.  .1% of your gas price of around 3 dollars is 3/10th of a cent.  His pay is irrelevant to a high volume company like Exxon, but obviously a lot higher than we make, so we complain.\n\nNothing against you, really.  It's just that most people on the Internet tend to look at one side of things without actually taking the time to do a few simple calculations.  It's getting tiring, and honestly, I don't really care if people hate corporations or whatever.  Emotions aren't strictly rational.\n\nMost of what I see on the Internet is so-called "propoganda" for one side or the other.  Just see the Politics section of Answers.  It's dissolved into a bunch of name calling really. *End of my rant* :)\n\nYou're still free to hate on Exxon for that last 10%, but people get the idea that Exxon could charge $1.50 for gas if they wanted to and that's really not the case.  If there was a price ceiling there, Exxon could make more money just selling the raw crude oil on the futures market.  And none of us would have gas.
806984
I believe the Bush administration Is the cause for the increase in gas prices. Do you remember when the Vice President had a secret meeting with the oil big wigs? This meeting was so hush-hush the president went to the supreme court to have the minutes sealed. soon after gas prices went through the roof. The Bush started the war in Iran. We had Gulf coast storms. There were a lot of factors but mainly it is greed by the oil companies. Oil companies will site market conditions as the reason for gas prices increasing. What they wont tell you is that they caused those conditions. ask them why did they close oil refineries down in Calif. and not build new ones?
18599
I don't think we will see gas at that level ever again. I'd expect that alternative energy sources could be developed but by the time they are, inflation will have raised prices too.\n\nWired currently has a story on why high gas prices may be better for the United States. It may be worth reading.
1109609
You know the cost of gas/petrol isn't really made as high as it is by the cost per barrell. The oil companies like Exxon, Esso, Chevron, etc. charge a lot more for their gas then the price per barrell.  If you do some research into it you'll see that the oil companies are making a huge profit on their product. Oil/petrol doesn't have to be as expensive as it is and they can still make a profit.\n\nTo answer your question though, I would say yes:\n\n"To date there has not been an obvious negative impact on the economy because of the price of oil. It is partly for that reason that the Federal Reserve is continuing to raise interest rates to help tame inflation."\nhttp://en.wikipedia.org/wiki/The_Price_of_Oil_and_The_Economy\n\nIt's very strange. The cost of oil is raised to huge prices by Exxon, Chevron, etc. which raises interest rates, which hurts the economy. Why?
308833
Well don't we just have number of highly qualified liberal economists giving you answers!  Is there not one liberal who can actually give an intelligent answer - not just repeating Micheal Moore?  \nHave you ever heard of Economics?  Do you not understand that SUPPLY & DEMAND drive economics?  The high oil prices are pretty easy to understand if are open minded.\nCrude oil prices are set by OPEC (that's ORGANIZATION for PETROLEUM EXPORTING COUNTRIES).  China & India are demanding double the oil they once needed because of their rapidly growing middle classes.  The worldwide demand has gone up and the worldwide supply has not increased.  When you have more demand than supply then the crude oil price will go up.  If we had more supply than demand the price would go down.  It's pretty simple an't it!  OPEC controls part of the prices, refining crude oil is the other cost.  Since we have not built any refineries or explored for oil in the past 30 years because of enviromental wackos - that is contributing to the high gas prices.
19084
It's a comodity that's traded on a comodities market. Supply and demand determine the price each month which is why it goes up and down.
246691
It is supply side economics it has never worked but the conservative agenda is to force it on us. If you have a pile of boxes and you want to move them if you pick up the top box all you move is the top box if you lift from the bottom all the boxes move up, including the top box. Their policy on oil is a bit suspect to, with the higher prices for fuel it will raise the price of everything to cover the cost of transporting the commodity's from factory to store.
1182564
There's a lot of gas price information here:\n\nhttp://www.gas.save-a-ton.com\n\nGood luck. Save Save Save!
927848
Gas futures rose as a result of the Democrats taking office, knowing full well that they do not comprehend the importance of this resource!\n\nThanks so much for asking! I'm glad I could clear that up for you!
399975
Mtn Biker, you conveniently left out that Exxon had sales of 330B last year.  Figure 90M into that and it would have almost zero affect (maybe 1/10th of a cent) on gas prices.\n\nI don't really care if you want to put the blame on Bush.  It's the fad these days anyway.  Others have pointed out the supply/demand nature of crude oil, which sets gas prices.  You might argue he could indirectly affect gas prices, but he doesn't affect them directly.  It can be argued both ways, so read up and make your own opinion.\n\nI'd like to point out that an Exxon boycott would do just about nothing because Exxon would end up selling their gas to the other suppliers that weren't being boycotted.  A selective boycott shifts the demand, not decreases it, which is what is needed to lower prices.\n\nThe mythbuster on that urban legend is here: http://www.snopes.com/politics/gasoline/gasout.asp
538898
People, gas prices are going higher because of one thing. DEMAND. I still see giant SUV's in traffic driven by one person. \n\nThe US has 5% of the worlds Population and we use 25% of the worlds resources. We are hogs and the Gas companies are making money from it. Also, the US Gov't taxes 46 cents per gallon thats more than the profit by the BIG OIL Co. They are the ones gouging the consumer.\n\nAnd in Europe they drive minis not Avalanches and Tundras and Armadas and any other vehicle named after the state that it is as big as like TAHOE !
1019271
Because as fiddlesticks9 said its a way to attract the consumer.  But what he forgot to mention is that in order to actually work you need the mindless consumers, who will see 1.99 as less then 2 and will always go to buy it from the one that has 1.99 price.\n\nPlus the true reason behind it is that when they buy the gas from the supplier, they are charges in the same manner.
445516
As of yesterday it jumped 13 cents in 24 hours making it 2.69 in Florida, it makes me sick because they are just playing with us, there is no legitimate reason for these prices. The worst part of it is they say it will reach 3.50 per gallon by this summer and when that happens I will have to quit my job because it will cost me 35.00 a week just to drive to and from work, no place else just to and from work.I work part time just for extra spending cash ,my husbands job supports the household , so what's the point in my keeping the job, can't afford the gas to go any where and spend it.
631272
No special reason, just because when the price or oil raise,everone go to buy gas so the price of the gas will raise either.
368718
Some of the prices are artificially inflated. \n\nHowever, gas prices in the US are still lower than in most countries. Go to Germany or England and pay the equivilant we pay per gallon for a liter. \n\nI do think that many of the companies are taking advantage of teh recoupment of defense oil reserves and the war against terror in order to boost their profits.\n\nOn a final note, though, the war in Iraq was not about oil. If it were, we would be getting oil from Iraq. We are not, yet at least. Much of what excess Iraq is producing is going towards paying their reparations to many countries.
628324
Gas prices will never go down. You might see a small reduction after a massive increase, but $3 a pop is now the price. I bet you will see $3.50 a gallon by the end of summer.\n\nWith your suggestions I believe you think American corporate price gouging is the cause for high prices. Most people point to supply and demand. But if price gouging is a factor, I fear there is no solution.  That is what Capitalism is all about.\n\nMost of middle America hates the prices, but loves the profits they are accruing with stocks in their 401K. ExxonMobile made $10 million in one month, made $1 billion last quarter. ConnocoPhilips made about 1/3 that in profits as well.\n\nThere just aren't enough people in the country that don't profit from selling gas to go beyond complaining about the price.  A boycott will not work.\n\nThe only thing we can hope for is the Feds suspend their gas tax for awhile.\n\nEDIT:\nOn another note, we Americans are too damn hypocritical.  We want the world to be democratic & capitolistic, but when oil prices rise, we want our people and government to act more with socialism values.  People chanted in the streets "No blood for oil!" when protesting in the 1990's, but now Americans want their oil.  What the hell is wrong with us?