Why are US gas prices so ridiculously high??

[jeo4]

Gas prices surge above $3

Drivers flock to the pumps as outages, bottlenecks fan fears of a gas shortage.
September 1, 2005: 1:32 PM EDT

NEW YORK (CNN/Money) - Gasoline prices spiked as high as $5 a gallon in some areas Thursday as consumers fearing a gas shortage raced to the pumps.

Drivers in Atlanta said stations were charging well over $3 a gallon for regular unleaded, and at least one station in Stockbridge, Ga., was charging customers $5.87 a gallon.

The price hikes were felt nationwide, with gasoline surging to $3.59 in Boston, $3.58 in Milwaukee and well above $3 in parts of New York.

Nationwide, the national self-serve unleaded average was $2.68 a gallon, AAA said on its Web site, increase of 6.1 cents -- and a record high. But a AAA spokesperson told CNN that prices were rising so fast that its Daily Fuel Gauge Report cannot keep up, and the price reported there more accurately reflects gasoline prices as of yesterday morning.

A CNN survey of 25 Georgia gas stations found an average price Thursday morning of $3.09 for regular gasoline.

The runup in prices prompted President Bush to warn against gouging and to encourage Americans to conserve. (For more on the president's comments, click here).

Consumers have been making a run on the pumps in the wake of Hurricane Katrina as refinery shutdowns and power outages fan worries of a looming gas crisis.

"We know there will be some spot shortages (but) there's gasoline in most areas to meet most people's needs," Gregg Laskoski, managing director of AAA in the South, told CNN.

Hurricane Katrina forced several refinery operators in the Gulf Coast, where about 40 percent of the nation's refining capacity is located, to shutdown.

Pressuring gas supplies even more were power outages that shut down two major pipelines that pump gas to key terminals and distribution centers along the Eastern U.S.

Colonial Pipeline reported Wednesday evening that it restored its pipeline to between 25 and 35 percent of capacity while Plantation Pipeline said its operations were back to 25 percent of normal. But with both pipelines operating below full capacity, the entire distribution process gets backed up.

To meet the onslaught of demand, stations have raised prices overnight. Some experts are saying gas could $4 a gallon, but whether those prices will be sustained remains to be seen. (For more, click here).

AAA's Laskoski urged people not to fill up their tanks if they're not traveling and said people should conserve fuel by keeping their cars properly maintained and tires properly inflated.

Average nationwide gasoline prices have gained more than 40 percent in the last year, and crude prices are hovering near $70 a barrel.

Source: CNN.com

---------------------------------------------------------------------------------------
So where should we place blame and what can we do to fix this mess?

[BubbaStrangelove]

I think it's price gouging.

Something a lot of people forget -- oil makes a lot more than just gas.

I was at the auto center today, and asking "Why haven't the price of tires gone up?" An odd fact that the same set of tires I purchased at the same Sam's Club a year ago -- are in fact $10 cheaper.... currently on sale, go figure...

[Thrizzle]

Its price gouging that is going on everywhere. its no secret people will pay a lot of money for gas, a lot more than we've been paying over the past few decades.

Energy companies and countries that supply crude materials (Saudi Arabia especially) have been f*cking over Americans for years now.

[Mr-Blonde]

Definitely price gouging, I believe all with the Bush administration's blessing. (You scratch our back and we'll scratch yours)

[jeo4]

I believe it's a combination of things, but price gouging seems evident. And I agree with Mr. Blonde in suspecting that the current administration is letting it happen under some arrangement. I also take stock in the notion that there are eight oil rigs not working in America and many petroleum ports were destroyed during the hurricane. But three to five dollars is ridiculous under even worse circumstances.

[Lynn7]

Some newscasters were saying today that there is 40 cents in taxes built into the gas prices. 20 cents for Mass state tax and 20 for federal tax. I think some legislator is trying to get the taxes taken off for the time being.
I have heard that the US has not built enough refineries and this has consistently been a problem.

But taking all that into consideration, it is just mind blowing how fast the prices have gone up (I paid 3.19/gal today!) and I have to think that someone is making a ton of money. But, sometimes I wonder if it is meant to get us to stop consuming so much so the supplies don't deplete. The US uses an unbeleivable amount of gas- there is no conservation. People are all driivng big cars and SUVS and no one carpools anymore. I am sure this will all be changing soon.Maybe as demand goes down the gas prices will too?

[JohnTheHenchman]

Granted, prices were on the incline but the reason for price going through the roof is definitely Katrina.

[KcMsterpce]

Jesus Christ, man?

Used to keep us from DEPLETING SOURCES?
Give me a fucking break!

Ugh...

In 1980, gas was about 75 cents a gallon.
In 1996, gas was 99 cents a gallon.
In 2003, gas was $1.30 - $1.50 a gallon.
2004, $1.50 - $1.80 a gallon.
today, $1.80 - $3.11 a gallon.

There have been disasters and ridiculous hikes in gas prices a lot over the last ten years, but I really see no logic in such a drastic increase in prices over the last year. No one should be fooled into thinking it's other than pure greed, mixed in with just a LITTLE bit of the truth. I'd say it's 10% truth, 90% greed that's causing such high prices. And these people don't give a shit about conservation of resources... otherwise, we'd have cars that don't run on fossil fuels by now. It's just that the patents are always bought - or strongarmed - out. The last thing that the people who make money from this would want is to have LESS money going to them. They know that no matter what, people will have to be dependant on using gas - whether they carpool or not - if there's hardly any other way of getting to work and home easily. If fifteen percent of these people found other means of transportation, that's still the other 85% dishing out dollars.
Why should Bush give a shit about the prices? To him, it's so little of an amount of money for him to deal with, that he isn't affected by the price of a gallon of gas. It's those who had a hard time affording gas in the first place that's getting fucked over royally.

[someguy]

Price gouging.

In 2003, 25 percent of all gas in America was from Louisiana wetlands (http://www.aapg.org/explorer/2003/09sep/louisiana.cfm) (some of which probably have dried up or gone by now). Is 25 percent really worth a hike of over 1 dollar, even more? There are plenty of other oil areas in America, and a lot of foreign resources also.

You think these corporations, the government, etc. are feeling bad for us? They try their best to help solve this? Nope. As Lynn pointed out, there are plenty of government taxes on gas and this just means corporations get a bigger profit. The government just gave oil companies more money to look for oil, yet they already make billions upon billions of dollars in a few months. The corporations, the government, people in stocks are loving this and if they say anything different they are bold faced liars. It's greed, it's price gouging.

Edit: I'm aware of this effecting the rest of the world mainly because of supply/demand, therefore the price of a barrel goes higher

[JohnTheHenchman]

No one who said it's price gouging has made any sense to me.

[Lynn7]

Someone told me today that the government is going to be investigating why the gas prices have been going up so fast. It's hard to believe it would take an investigation to find out why this is happeneing. I mean, I don't know why, but I would think someone would!!!!!

It goes to the story of the goose that layed the golden eggs right? The prices go up so high that people start to develop other methods of transportation and then the demand goes way down. And for people blaming Bush, from what I understand the prices around the world have gone way up so it isn't just a US problem- in fact, aren't our prices stillway lower than Europes?

So do the high prices originate in the oil producing countires, or at the refieries or at the companies that transport the oil etc? Someone must know this???

[Brando @$$ Fat]

Other....

Just look how many SUVs and Hummers you see driving around. There are assholes here in South Carolina who drive Hummers despite the fact that it's flat as a bitch down here so there isn't much you can do with them. Honestly, they have the right to drive what they want to, but they're still assholes.

[Criminal Rock]

Gas prices are high because OPEC spends 7 dollars producing a barrel of oil, and sells it to the US at 70 dollars. That’s just my take on the whole spiel.

Brando, if you’re going to get mad at gas guzzling hummers, might as well get mad at 18 wheelers who get 4 miles a gallon and drive 3,000 miles across the country. How many people own hummers in the United States? Not as many as people who own Honda Accords, its unlikely that they are the cause of this problem… companies and corporations are raising the prices and exploiting the disaster, there’s nothing else to it.

[someguy]

Originally posted by Tai Mai Jew
Brando, if you’re going to get mad at gas guzzling hummers, might as well get mad at 18 wheelers who get 4 miles a gallon and drive 3,000 miles across the country.

uhh, there's a giant difference between 18 wheeler and hummer/suv

18 wheeler: I have to deliver these supplies around the country to help businesses and people

Hummer: lololool i hav big car ladies plz hav sex with me

I do agree with you on how it's not the cause of the problem though. It just is one of the little things to make it worse.

[BubbaStrangelove]

Originally posted by JohnTheHenchman
No one who said it's price gouging has made any sense to me.

That's because price gouging makes no sense, it's just a by-product of greed.

Do you think the price is higher because of the hurricane - ie. Do you think it's because there is a higher demand?



Tai Mai:
Gas prices are high because OPEC spends 7 dollars producing a barrel of oil, and sells it to the US at 70 dollars. That’s just my take on the whole spiel.

Why do you suppose other oil-based products haven't gone up in price?

[SpongeBod]

I think it’s due to supply and demand. Gas is in high demand, so in turn prices go up.
When the public is told that gas is going to be running out. Everyone scrambles to the pump to get all the gas they can. This makes the supply dry up even more, and the prices go even higher.

The idea of putting a temporary freeze on the gas prices sounds good, but it could make things worse. People would really race to the pump. I don’t know if that would be bad or good.

Originally posted by Brando @$$ Fat
Just look how many SUVs and Hummers you see driving around. There are assholes here in South Carolina who drive Hummers despite the fact that it's flat as a bitch down here so there isn't much you can do with them. Honestly, they have the right to drive what they want to, but they're still assholes.
If you are going to attack people for driving SUVs. Then you need to also include boats, limos (that your favorite stars ride in), old gas guzzling P.O.S.’s and fancy sports cars.
I own a Chevy Avalanche (not one with the ugly plastic all the way around), but I live in a small town. So, I don’t put a lot of miles on it.
I wanted a vehicle that I could hold my family, my work equipment and home supplies when I need them.
But, you are right. I am an asshole, but I prefer to be called Mr. Asshole.

[Lynn7]

Originally posted by SpongeBod
I think it’s due to supply and demand. Gas is in high demand, so in turn prices go up.
When the public is told that gas is going to be running out. Everyone scrambles to the pump to get all the gas they can. This makes the supply dry up even more, and the prices go even higher.



Have you seen the movie Road Warrior? That takes this to an extreme. :)

[outsyder]

There's also the fact that New Orleans held the only supertaker offloading port in the gulf. It's not the direct cause, but it sure doesn't fucking help.


We really need to tax the fuck out of anything headed to Saudi Arabia.

[Criminal Rock]

Originally posted by someguy
uhh, there's a giant difference between 18 wheeler and hummer/suv

18 wheeler: I have to deliver these supplies around the country to help businesses and people

Hummer: lololool i hav big car ladies plz hav sex with me

I do agree with you on how it's not the cause of the problem though. It just is one of the little things to make it worse.

I suppose you have to include intention, but it really doesn’t matter since the effect will always be the same whether they HAVE to own the vehicle, orif they buy it just for fun.

[BubbaStrangelove]

Yeah, I know.

No one else has been able to explain that to me either.

[Brando @$$ Fat]

Originally posted by SpongeBod
If you are going to attack people for driving SUVs. Then you need to also include boats, limos (that your favorite stars ride in), old gas guzzling P.O.S.’s and fancy sports cars.
I own a Chevy Avalanche (not one with the ugly plastic all the way around), but I live in a small town. So, I don’t put a lot of miles on it.
I wanted a vehicle that I could hold my family, my work equipment and home supplies when I need them.
But, you are right. I am an asshole, but I prefer to be called Mr. Asshole.

Ahem, I do believe that I used the word "asshole" for the people who drive Hummers where there are no mountains or hills. Way to blow that one way out of proportion.

As for your Chevy Avalanche, I don't think those are all that bad. As long as you don't put lots of miles on it. Some people, however, drive the huge gas guzzlers everywhere and seem to show no remorse for it. When the end of the world comes because we run out of gas, then I think the responsible ones will know exactly who they are.

[BubbaStrangelove]

What if he drove a Hummer?

And how do you knwo where these people drive their Hummers too?

I think what he is pointing out is that there's a lot of jumpting to conclusions with many things like this.

But I'm with you for the most part. There are so many cases where the vehicle is unnecessary. I actually heard a woman say that if she'd rather kill someone because she hit them with an SUV, than risk being hurt in an auto accident - she used those words for the most part too. That kind of mentality, to me, is ass hole. It's only too bad that people have ended up worse off because of their decision to be safer in that manner.

Cars are designed to be so safe now, it's an even more ludicous excuse. I've seen cars sandwiched by 18-wheelers, and the driver was packed into his airbag. Most accidents I see involving death, there is usually a truck behind. I find it comical that the make mud flats, used for trucks with a cartoon character brandishing pistols, warning you to "Back Off' - Such a small thing that's indicative of such a specific mentality.

[JohnTheHenchman]

I hate sound like...I don't know...an asshole but women + SUVs = the worst.

There was something on CNN headline news about how families are dealing with higher gas prices and a woman said she'll only buy the necessities, won't buy her kids toys or treats or anything.

She drove a GMC Ozone Depleter.

I wanted to dropkick the tv.

[SpongeBod]

Originally posted by Brando @$$ Fat
Ahem, I do believe that I used the word "asshole" for the people who drive Hummers where there are no mountains or hills. Way to blow that one way out of proportion.

As for your Chevy Avalanche, I don't think those are all that bad. As long as you don't put lots of miles on it. Some people, however, drive the huge gas guzzlers everywhere and seem to show no remorse for it. When the end of the world comes because we run out of gas, then I think the responsible ones will know exactly who they are.
Okay, you win. I'm not an asshole.

Just curious. What do you think are a lot of miles to put on a truck? Let's say for a year.

[Brando @$$ Fat]

Originally posted by SpongeBod
Okay, you win. I'm not an asshole.

Just curious. What do you think are a lot of miles to put on a truck? Let's say for a year.

Well, it depends what your job is I suppose. Personally, I could care less what you drive, so much as you don't constantly waste gas by driving random places for no specific reason.

[MacReady]

Originally posted by Brando @$$ Fat
Personally, I could care less what you drive,

You haven't read the rant, have you? (http://www.joblo.com/forums/showthread.php?s=&threadid=44578)

[Brando @$$ Fat]

Originally posted by MacReady
You haven't read the rant, have you? (http://www.joblo.com/forums/showthread.php?s=&threadid=44578)

No I didn't read the rant, and I do admit that it was a dumb choice of words. I was referring to SUVs in general, just to confirm that I wasn't calling Spongebod an asshole. If you drive a Hummer in a flat area, then you're an asshole, regardless. You have a right to drive whatever the hell you want, but if you drive the most gas guzzling vehicle around just because it makes you feel big, then you're an asshole. Period. Same goes for limos. Let the stars drive their own damn vehicles.

[MacReady]

Originally posted by Brando @$$ Fat
No I didn't read the rant, and I do admit that it was a dumb choice of words. I was referring to SUVs in general, just to confirm that I wasn't calling Spongebod an asshole. If you drive a Hummer in a flat area, then you're an asshole, regardless. You have a right to drive whatever the hell you want, but if you drive the most gas guzzling vehicle around just because it makes you feel big, then you're an asshole. Period. Same goes for limos. Let the stars drive their own damn vehicles.

I was only focusing on your "I could care less" (which inadvertedly means you care a little as your empathy isn't at maximum height yet). I didn't put much thought into the car thing (althought I too hate it when people use SUVs).

[BubbaStrangelove]

What if you have a Hummer AND a Prius - would that make you an asshole sometimes, but a really great person other times?

I dont' think people are assholes just because of what they drive. If they are getting something out of it -- I say that is great. To me, those 'pimped' out Hummers are amazing, and I wouldn't mind owning one myself. The whole point, to me, is WHY you own it.

If you want something big for hauling, you feel safer, or what-ever, then that's fine.

I've just heard so many comments to the effect of people thinking they are safer, knowing it's because they kill someone before being killed --- I've heard so much air of superiority from many owners in defending SUVs (not in this thread - I'm talking like in letters sections in papers) I heard someone say that if they beheaded someone, it would be worth it to know their kids are safe. To me, that's questionable. What's wrong with feeling safe knowing that you might have a minor accident, and no one would have to die. Some of these people I've heard weight another person's human life against them having a broken arm, or an insurance claim --- To me, that's where the anger should be focused - not in theorizing how much good they are getting out of their beasts.

[Brando @$$ Fat]

I guess that's understandable, safety is much more important that gas usage. Still, it bugs me that the American people seem to think that there is an unlimited supply to everything. It's amazing that some people bitch about gas prices being way too high, but they're not even grateful that we still have gas on this planet.

Hypothetically, lets say you're locked in a giant room with three other people. There is no chance of escape, but you have everything you need to survive. One of the three people you're with is a fatass who eats a lot, and you start to notice there's a lot less food. There's enough food to last a while, but you're still angry at the fat guy for wasting so much of it.

That's pretty much how I feel with people who drive Hummers.

[BubbaStrangelove]

Yeah, and you'd be even more pissed if that fat guy feel over and crushed a skinny kid. Then he said, "Well, that kid should have bulked up, and he would have been safer."

To me attitude is 100% the problem. I believe the same people with the tudes are the same people too moronic to realize that they are spending $70 to fill up because of a choice they made - not because of the price of gas.

When these people are confronted about posing a public safety risk, they say "Oh well, I made the choice to be safe. Anyone can do the same thing." (Not realziing that many just can't afford, or just don't want one...) These people complain whenver the government starts talking about changing the design of SUVs to make the bumpers compatible. Then when the price of gas comes up - all of a sudden it wasn't their choice, and now the government needs to step in and do something.

[SpongeBod]

Originally posted by Lynn7
Have you seen the movie Road Warrior? That takes this to an extreme. :)
http://i7.photobucket.com/albums/y286/USA5000/Goofs/madmax23.jpg
"Damn! Gas prices are HUMONGOUS!"

http://i7.photobucket.com/albums/y286/USA5000/Goofs/madmax22.jpg
"Gas prices are so high. We can't afford to go to the Kajagoogoo concert."

http://i7.photobucket.com/albums/y286/USA5000/Goofs/madmax21.jpg
"Holy Crap!"
"Gas is higher than BubbaStrangelove at Home Depot on a Saturday afternoon."

[BubbaStrangelove]

Man, that post just got better and better. :D