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Topic:
Why are gas prices so high? [Locked] |
SoBaKi  Posts: 487
Registered: 2002-2-26 09:31:13
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Date Posted:
1/1/00 12:00am
Subject:
Why are gas prices so high? |
DemonicXH posted:
According to some, high gas prices mean the economy is recovering!
Really, can you be a little more specific?
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Sin_of_Onin  Posts: 1,307
Registered: 2005-6-29 08:21:12
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Date Posted:
1/1/00 12:00am
Subject:
Why are gas prices so high? |
The more I think about it the more it seems like the rise in gas prices is a result of increased demand at the pump which puts pressure of gas reserves. The result is a rise in price to keep the supply of gas in line with the predictions made by gas companies months ago. The inability of the consumer to respond to changes in price in the short term gives gas suppliers an incentive to have these short term shortages that result in price spikes.
Inelastic demand is not a good thing in market economies and the gas companies seem to be very good at taking advantage of this lately.
Theoretically one company would be able to step in and address the issue but there is more profit in all companies letting it happen.
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"What Jesus fails to appreciate is that it's the meek who are the problem"--Reg
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DemonicXH  Title: Camelot Vault Staff
News Editor
Posts: 584
Registered: 2003-12-1 08:14:17
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Date Posted:
1/1/00 12:00am
Subject:
Why are gas prices so high? |
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Umm...sarcasm?
Just poking fun at people who blame Obama, yet have Exxon padding their pockets.
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Sin_of_Onin Posts: 1,307
Registered: 2005-6-29 08:21:12
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Date Posted:
1/1/00 12:00am
Subject:
Why are gas prices so high? |
DemonicXH posted:
According to some, high gas prices mean the economy is recovering!
Actually according to most economic recovery means increased demand on gas. Whether that leads to increased prices or not is another question.
Inflation in general is a sign of economic recovery, gas is easily the most sensitive item though.
-----signature-----
"Okay... I'm with you fellas" --Delmar
F is for Fake-believe
"We apologise for the inconvenience" --God
"What Jesus fails to appreciate is that it's the meek who are the problem"--Reg
Run, Forrest! Run!
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SoBaKi Posts: 487
Registered: 2002-2-26 09:31:13
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Date Posted:
1/1/00 12:00am
Subject:
Why are gas prices so high? |
DemonicXH posted:
Umm...sarcasm?
Just poking fun at people who blame Obama, yet have Exxon padding their pockets.
Ahh, understand.
-----signature-----
"Do what you can, where you are, with what you have." - Teddy Roosevelt
Know god, know sin. No god, no sin.
Dogs are animals.
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Date Posted:
1/1/00 12:00am
Subject:
Why are gas prices so high? |
DemonicXH posted:
According to some, high gas prices mean the economy is recovering!
You were accidentally right. How cute!
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Kjarhall Title: The Pungent One
Posts: 915
Registered: 2002-3-1 15:47:21
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Date Posted:
1/1/00 12:00am
Subject:
Why are gas prices so high? |
Increased global demand, the closures of three East Coast refineries and Iran speculation.
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theredkay1 Posts: 611
Registered: 2008-5-16 10:37:09
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Date Posted:
1/1/00 12:00am
Subject:
Why are gas prices so high? |
Sin_of_Onin posted:
eodoll posted:
Iran stopped shipping oil to france and britain as a FU to the EU for the sanctions.
Eventhough iran is not a big provider of oil that move caused instability and extra reliance on the saudis to produce more oil than usual.
So the speculation is that oil will be more expensive.
People keep talking oil prices but I am talking gas.
Oil prices are not that bad. Gas prices on the other hand are crazy high. There is a disconnect between the price of oil and the price of gas.
Are you using the summer of 2008 as your reference point?
Since 2008 the US has greater capacity to export gasoline. This additional demand for US gasoline should push prices up.
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Sin_of_Onin Posts: 1,307
Registered: 2005-6-29 08:21:12
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Date Posted:
1/1/00 12:00am
Subject:
Why are gas prices so high? |
theredkay1 posted:
Sin_of_Onin posted:
People keep talking oil prices but I am talking gas.
Oil prices are not that bad. Gas prices on the other hand are crazy high. There is a disconnect between the price of oil and the price of gas.
Are you using the summer of 2008 as your reference point?
Since 2008 the US has greater capacity to export gasoline. This additional demand for US gasoline should push prices up.
I would accept a spike in domestic demand to be a legitimate reason for gas prices to increase but that would also fit my theory that gas supply is artificially tight because tight supply serves the suppliers.
-----signature-----
"Okay... I'm with you fellas" --Delmar
F is for Fake-believe
"We apologise for the inconvenience" --God
"What Jesus fails to appreciate is that it's the meek who are the problem"--Reg
Run, Forrest! Run!
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GrilledCheez Title: The Lord's Balls
Posts: 1,060
Registered: 2006-3-22 11:06:32
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Date Posted:
1/1/00 12:00am
Subject:
Why are gas prices so high? |
it's a good investment and has relatively inelastic demand.
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Another word for expensive is successful.
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