Why gas prices are going up and what can be done about it.
Gas is important in our daily life. It is consumed by 17 percent of people in the United States. They need gas for many reasons such as run their cars, heating their houses, the lawn mower, etc…
In the United States, gas is going up and people don't like that because most of them use cars to travel between places and that make them pay lot of money for gas. Especially for people who have to drive lots of miles everyday, or the ones that have cars that need more gas than the others'. The problem in high gas prices is that people get the same amount of wages, but the gas keeps getting higher. This is the reason why many people are worrying about their vacations or the distance they are going to use to get to place. Here we will talk about the reasons for high gas prices and what role does the gas companies and the government play in this problem.
Why Are Gas Prices Going Up?
America is the most powerful continent became the most problematic continent of the world. They are many problems for the U.S citizenship and the top of these problems is the high gas prices. The gas price rises from the country problem such as economy and the war. There are many reasons why gas price goes up: If there is any technical problem in a gas station the government has to race the gas price, so can make the money to fix the damage. Also, the war in Iraq is one of the major reasons that cause the gas price to go up. The bad economy and the problem of the war make the U.S gas prices to go up too. The high gas prices are also related to the oil prices. As oil prices go high the gas prices will rise too. Another reason for the high gas prices would be the organization of petroleum exporting countries (OPEC) which increased the prices of oil crude and that is what led to high gas prices. But even though the gas prices are high in the U.S; they pay less money than what they pay in Europe.
The next chart will show the difference of the gallon price between the years (1982-2006) and it shows the big change between those years.
This following chart represents the gas prices and how they are going up with government involvement. It also shows how the Iraq war, the invades, and the OPEC affected the gas prices
Government Involvement
Some oil industries said that high gas prices are because of the increase in demand and shortage of U.S refinery capacity only. Most of the American people did not buy that explanation and said that they are just following the Gallup Poll. The most common reason that the people think is that the oil companies are just gouging the consumers. There are other reasons for the high prices which are the increase in demand, the oil shortage, the Iraq war, and the government which is also a reason. Most of the Americans are expecting to pay $4 this summer, but the oil companies raised the prices to $5 dollar per a gallon.
The gasoline prices have increased by 45% over the last year. Most of the drivers are worried about the summer and the plans that they have for it. The drivers are making a strike trying to change that problem. The oil is scare because of the government intervention in form of taxes and regulations. The OPEC is trying to produce more oil but it depends on the ration of the consumptions now and in the future. Some of government involvement may be good to stop the prices going too much high. It might be successful looking at the Iraq war and what happened to their economy because they didn't bow the U.S government wishes. That made the oil industries fear the government and try not to make the gas prices goes very high.
The crude oil is needed to make the oil and if it goes up the gasoline prices will rise up too. That will also affect the oil prices too. Much of the gasoline prices are due to the gasoline taxes which has increased 54% in the past decade. If these taxes been removed then the oil and gasoline prices which will lead to decrease in energy prices too. Those taxes make the oil companies take less profit which make them raise the price and with the taxes removed the prices will get low and the companies will get more profit. The appropriate solution for high gas prices would be if there is less government involvement.
In all honesty, I think the gas prices have risen so high because a lot of people need gas for their vehicles and no matter what the prices are, it has to be paid.......It's called "Lets make a fortune by raising the gas prices, people need gas no matter how much it costs.
#2 by Tree, May 21, 2008
Compare the Kyoto Treaty (Dec. 1997) signing to the Gas Price Graph. Weird Correlation especially when Kyoto affects emission cleanliness.
#3 by ANGER, Jun 3, 2008
SINCE THE GAS PRICES WENT SO HIGH, WHY CAN'T THEY PUT OUR PER HOUR HIGH TOO???
#4 by lisa, Jun 3, 2008
the government seems to think we are stupid. over the last 4 couple of years they made every excuse in the book. first the war then katrina now the refinaries are running low. Please if they were running low they wouldve been able to detect that a couple of years ago.im getting sick and tired of the excuses and the govt needs to do something to fix the problem and end the war. the rich get richer and tha poor get poorer.
#5 by Bobbie JO, Jun 6, 2008
Number 1 I love my country and my husband is in the military and I believe all of our troops need to come home that is one reason why its going up, Second of all do they even think about low income famiies who are single parents like I am now I work a minimum wage job and most of my check goes to gas for the week. My bills are sky rocketing beause I am having a hard time to manage. Do i quit my job will i have more money if i live off the government?
These are my bills
Rent 675.00 month
lights 33.00
insurance- 36.00
basic phone and cable 114.00
gas 180.00
Gas for my car 48.00 when i was in VA it was 25 to fill up my car.
Yes I smoke and the cig. went up as well
and I make 159.00 a week how in the hell am i supposto live on that when milk went up, eggs, cigs, and even gas. Now do I really love my country now NO. Id rather be in another country right now.
#6 by Scott, Jun 7, 2008
I think we as the people need to start a revolution on the goverment for not fighting for us and the economical status that is now costing us all dearly.I listened to Bush say its because we have not built any new refineries and supply and demand are causing the price to go up.I think thats BS why is it up to USA to build new refineries for the oil companies to make even better profits.I am just an average american trying to make ends meet and if I was The President I would find out why the price has gone up so rapidly in such a short amount of time and hold those people acountable .We need a goverment that is willing to fight for americans and our way of life.And screw Iraq the way things aare going here at home to end that whole fiacsco.I love the USA and I don\'t feel like our goverment or our president does so lets fight these jackasss and get some Americans in goverment who love our America.
Scott Mac
#7 by Frankie Snakes, Jun 9, 2008
I wish some one would pants George Bush so everyone could see his little weiner
#8 by charlie, Jun 10, 2008
You people have no idea what your talking about. It is not the oil companies it is the federal government. they will not allow private companies to build refineries the red tape is to thick. oil companies are in the business of selling oil the more they sell the more money they get it is simple business 101. the government is behind the high prices allow companies to drill in alaska and off the coasts, allow refineries even if it has to be in your area. get over this feeling that the gov is going to solve this problem they only create more. get an \"edgemucation\" before you post something so stupid
#9 by Shaan, Jun 11, 2008
Gas prices in my city r 4.59
Last year they were 2.69
Wow
i hate George
Bush
#10 by Shaan, Jun 11, 2008
Bush is stupid u weird Charlie
#11 by mrkeith77, Jun 12, 2008
I\'ve read the blogs and I\'ve considered the comments. I still have questions of the honesty in reporting the facts. If I made $1,000 a week in business, and then the amount of business increased... so would my profit. But if I raised the cost of my product, I could make the same profit for no more work, especially when I have a product the consumer must have. When I hear about the whole \"supply and demand\" issue, it makes me sick. If the oil companies are having trouble keeping up with demand, this should have been addressed years ago. Its kind of like Y2K and the predicted overload of the internet in two years. Or, how about the traffic problems when you have a 20 yr old hiway system? My point is, if it costs more to produce, and they are operating at maximum output, then they are charging more for the same oil. Why announce record profits and continue to raise prices when the profits should go into the construction of new wells? When other businesses cannot keep up with demand they hire new employees, expand or open another store. This benefits all. What sence would it make for a single Walmart store to have people lined up for a block to get in. Look at McDonald\'s... sometimes several in the same town. I don\'t doubt that the war increased the cost of oil a bit, but remember the gas wars years ago? Flags on the pumps? The price was not the issue then and it shouldn\'t be now. I think we have a government that looks for excuses to raise the taxes and find reasons to increase fuel prices. Let\'s not forget our president has a vested interest in oil, and he\'s leaving office soon. A nice retirement plan?? Who knows? Anyway, I\'m sick of excuses about what makes us pay more and there are no solutions being offered. I know a security guard at a refinery and he mentioned that there have been no new refineries built in 15 yrs. Hello, wake up people!!! Use some of your record profits before we all find an alternative to your fuel burning cars and leave you holding your nozzles!
#12 by JD, Jun 13, 2008
THERE ARE TO MANY PEOPLE TO BLAME FOR SURGE IN PRICES. I DONT EVEN KNOW EHRE TO BEGIN, ALL I KNOW IS THAT SOMETHING I MEAN ANYTHING NEEDS TO BE DONE. I THINK GW IF HE REALLY CARED FOR OUR COUNTRY SHOULD PUT HIS MILLION DOLLARY A YEAR SALARY INTO GOOD USE. I MEAN HES ALREADY MAKING A TON ON HIS TIES TO OIL. IT JUST MAKES ME SICK WHEN I CANT EVEN TAKE MY CAR OUT FOR A JOYRIDE ANYMORE AND I HAVE TO DRIVE LIKE IM 90 YRS OLD JUST TO SAVE A LITTLE GAS.
#13 by DCG, Jun 15, 2008
I agree with mrkeith77. Does anyone remember about 4 or 5 yrs ago when they would show those late night advertisements about investing in Oil. (Similar to the ones they show about Gold now). How could they predict that Oil will be going up so much over the last 3-4 years, as it did, unless the Stock holders planned it? Somebody knew and somebody is getting rich!
#14 by Z, Jun 16, 2008
GEORGE BUSH SUCKS
#15 by Jeff, Jun 18, 2008
If you want good information on high gas prices, check out wiki. They are very right on!!! P.S. George Bush has nothing to do with it. Alot of you need to learn some simple economics.
Best Wishes to all, Jeff
#16 by jerry shack, Jun 23, 2008
we are all dead because of g.bush he messed things up then we have to fix it boom.....booom.....booooom....so what are we going to do fight back .....not hide around a bush????????
#17 by Zach, Jun 24, 2008
This country was built on protest. Thats what a true patriot is. The people as a whole have to come together on this issue or this country is going to drive itself into the ground. I mean hey the lawmakers dont need to worry about it because they make so much theyd never have to worry about 4 dollars a gallon. Well thats not the majority. It isnt fair to working class people. If they can find a job that is!!! But thats a whole nother issue!!!!
#18 by Poor working man, Jun 26, 2008
Only people who want an easy-out for anger blame a president. Lets give it to you simply. Over the past few decades the democrats have consistantly fought against new drilling. The tree huggers want no refineries built, at least not on US soil. The republicans have tried to get more drilling done,(mostly because it would profit them), but the minority in this country rules.(ie Environmentalists.) Dont think this wouldnt happen under Al Gore if he actually won. He is another oilman like bush. And if you even think another Carter administration under that OBAMAnation of a human being will have a plan. Get real. None of them care, nor will anything be done. Where is Ross Perot when we could use a good man in office?
