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Author Topic: What do you think is the key factor in the increase in gasoline prices? Back to Topics
LKnight598

Champion Author
South Carolina

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Points:548,270
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Message Posted: Feb 22, 2013 10:22:12 AM

It's a complicated topic and there's not a simple answer. I think it's a combination of many factors. While I suppose the speculators can bear some of the responsibility.

In my opinion, I think there are several other factors to consider. Opening the market by granting more exploration by approving more permits would help. Relaxation of many regulations, but not to the point of harming the enviorment, but exploring in a responsible manner. Getting a handle on the debt, that seems to have an effect on the value of the dollar could be a major factor. Our dollop just doesn't buy would it did a year ago. All that being said, investment in positive methods of increasing production could certainly be a consideration. If fracting is so bad, then invest in methods of doing it that will be safer and more efficient.

While I do see a need for investment in alternative means of energy, we simply can't ignore investment in to our major means of energy NOW. Look at cleaner, coal, gasoline, diesel and other energy resources we have now. Greene energy is great, but it's not going to reduce what you pay at the pump anytime soon or not anytime in the immediate future! Not everyone can afford to spend the money for a more fuel efficient car every few years. Just my thoughts...what do you think?

[Edited by: LKnight598 at 2/22/2013 10:28:53 AM EST]
REPLIES (newest first) Post a Reply
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RoyinForest
Rookie Author Ontario

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Points:120
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Message Posted: Mar 17, 2013 9:55:53 PM

First let me declare up front that I am in Canada and cannot speak for the US market. It may, or may not, have the same causes. But here's my nickel's worth on the root cause of high (out of control) gas prices:
"It is nobody's best interest to have cheaper gas". Let me explain.
Gas is a commodity that is essential to our way of life.
We live, and work, and travel in an expansive country where distances are great.
Prices are "controlled" by a raft of different bodies, government (taxes), businesses (profit),
vested interests (exploration, lobbyists, etc)

None of the above are harmed by higher gas prices.
Taxes are either fixed (per litre) or a percentage. They are passed on directly to the end consumer.
Profits are hidden, disguised, or made so complex to render determination difficult. And in the end they too, are passed directly to the end consumer.

So who then, gets helped by lower prices. Only the end consumer, who has no say in the cost.
Government get more $ as prices rise, but gets NO blame for it.
Businesses get more $ as prices rise, but get NO blame for it.

Everyone up the food chain is free to pass the buck (pun intended) up to the next level. and they DO.

What we need is a way to make these various price components sensitive to the need to manage, control and REDUCE prices.
We have had politicians campaign (and get elected) on a platform of "watching gas prices". We need to make them accountable for reducing them.
We have businesses that are not in competition with each other for price, but for market share.

So the question is not one of "how to reduce" prices (since as end consumers we don't control them), but "how to make those who DO control price, want to reduce them".
End consumers feel the pain at the pumps. Where do the governments and businesses feel the pain?
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mandydonnaprinc
Champion Author Hamilton

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Message Posted: Mar 4, 2013 6:26:31 AM

greed
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gas_phil
Champion Author Sacramento

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Message Posted: Mar 1, 2013 1:57:52 PM

Gas distributor exec wants to buy a new fleet of luxury cars for his/her employees!!
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wbacon
Champion Author Philadelphia

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Message Posted: Mar 1, 2013 12:23:13 PM

the so called "Environmental movement" lackeys of OPEC.
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gasguy61
Rookie Author Edmonton

Posts:33
Points:591,760
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Message Posted: Feb 28, 2013 11:28:48 AM

greed of the oil companies to make multi billion dollar profits
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bluenvoy
Champion Author Nashville

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Message Posted: Feb 28, 2013 8:42:45 AM

The Government this time.
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WES03
Champion Author Maryland

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Message Posted: Feb 28, 2013 8:26:29 AM

The populace being willing and able to pay.
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jason54915
Champion Author Appleton

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Message Posted: Feb 28, 2013 8:06:27 AM

GREED!
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valby
Champion Author Massachusetts

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Message Posted: Feb 28, 2013 8:02:02 AM

Corporate greed and speculators.
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kjSC
Champion Author South Carolina

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Message Posted: Feb 28, 2013 8:00:02 AM

Lack of refinery capacity coupled with damn speculators.
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Boyrr
Champion Author Allentown

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Message Posted: Feb 28, 2013 6:53:28 AM

greed
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mandydonnaprinc
Champion Author Hamilton

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Message Posted: Feb 28, 2013 6:27:33 AM

greed
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the1roadhog
Champion Author Atlanta

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Message Posted: Feb 27, 2013 7:36:46 AM

Government greed
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jack4141
Champion Author Alabama

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Message Posted: Feb 27, 2013 7:36:32 AM

Bozo
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mandydonnaprinc
Champion Author Hamilton

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Message Posted: Feb 27, 2013 7:27:36 AM

greed
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coffeerage
Champion Author Las Vegas

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Message Posted: Feb 26, 2013 8:58:40 PM

Obama and his clean energy pals stifling production of oil, coal, and blocking Keystone pipeline.
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down2fumes
Champion Author Jacksonville

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Message Posted: Feb 26, 2013 6:31:59 PM

greed
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badger2
Champion Author Boise

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Message Posted: Feb 26, 2013 6:26:06 PM

Speculators and speculators!
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DimWit9898
Rookie Author Detroit

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Message Posted: Feb 26, 2013 4:16:47 PM

Got a GasBud price hike alert the other day, but with no explanation of the reason behind the hike? Could it have been an approaching snowstorm to the Detroit area?
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NickoliMB
Champion Author Manitoba

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Message Posted: Feb 26, 2013 3:42:07 PM

Speculation and Corporate greed.Look for every way possible to elevate prices.
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grampi47
Champion Author Illinois

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Message Posted: Feb 26, 2013 2:44:21 PM

Yep, more and more refined product is produced, and more and more is exported, keeping our prices as high as ever. I say they shouldn't be allowed to export until our prices come down to a reasonable level first...I'm talking about $1 to $1.50 a gallon less than they are now...
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Sporttster
Rookie Author Indiana

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Message Posted: Feb 26, 2013 2:36:29 PM

Greed, pure and simple. More and more oil is coming online daily. We're "supposed" to be heading towards oil independence but it won't matter one bit. We can pump 10 times the amount needed but they'll just bid it up further regardless, this is why pumping more isn't helping us one bit. OUR oil should be priced by OUR standard, WTI, NOT by Brent, but guess what....it's being priced by Brent. Why? Greed.
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DoctorV
Champion Author Detroit

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Message Posted: Feb 26, 2013 2:26:14 PM

Demand.
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grampi47
Champion Author Illinois

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Message Posted: Feb 26, 2013 1:33:56 PM

"2 big referniers were down at the same time. fire at one, mantanince at the other one. back on line fri at a slow pace for 10 days."

Two refineries being down is hardly justification for gas prices to go up 20% nationwide over a month. That's nothing but pure profiteering...
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dangasman
Champion Author Michigan

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Message Posted: Feb 26, 2013 12:45:43 PM

2 big referniers were down at the same time. fire at one, mantanince at the other one. back on line fri at a slow pace for 10 days.
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Maintroll
Champion Author Lexington

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Message Posted: Feb 26, 2013 10:16:14 AM

It is not complicated, it is simply speculators, greed and investors causing this unnecessay spike in gas prices.
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cogas1
Champion Author Colorado

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Message Posted: Feb 26, 2013 9:48:35 AM

a gov't with an agenda.
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kjSC
Champion Author South Carolina

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Message Posted: Feb 26, 2013 7:57:39 AM

Lack of refineries.
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mandydonnaprinc
Champion Author Hamilton

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Message Posted: Feb 26, 2013 7:47:32 AM

greed
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tpinilla
Rookie Author Atlanta

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Message Posted: Feb 24, 2013 8:36:12 PM

CEO desire to buy new vacation home...
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wbacon
Champion Author Philadelphia

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Message Posted: Feb 24, 2013 5:12:20 AM

opec greed and their paid off lackeys in the United states, the so called "Environnmental movement" suppressing competion from the united states with their phony environments "FEARS"
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vulcan96
Champion Author Ohio

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Message Posted: Feb 24, 2013 4:45:04 AM

excesive manipulation/greed
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Buddy2264
Champion Author Tampa

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Message Posted: Feb 23, 2013 11:47:56 PM

Greed, and exports of finished fuels since we cannot export imported and US oil. The more we drill and pump in the US the more that is going to be exported.
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paullypuiu
Veteran Author Georgia

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Message Posted: Feb 23, 2013 11:07:10 PM

The green party.
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anapeg
Champion Author Ontario

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Message Posted: Feb 23, 2013 9:09:20 PM

Greed, supply and demand. You want them to supply they will demand the maximum they believe you and I will pay to fuel their greed.
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weddy11
Champion Author Phoenix

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Message Posted: Feb 23, 2013 4:57:06 PM

Greed
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CHEAPERDREAMS
Champion Author Nevada

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Message Posted: Feb 23, 2013 4:09:18 PM

There are a few things not contributing to the rise in gas price. We have a glut of crude in the US, right now. The current days of supply for gasoline are at the high side of 5 year average.

Here are the most contributing factors. Exporting oil and gas for higher dollars. Reduced refinery utilization. An infrastructure of delivery that has not been upgradeded in 25 years. By the way refinery utilization has decreased by 5% since the first of the year. This creates a false sortage on the market and the speculators just jump on the chance to run prices up.
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siphoned
Rookie Author Vancouver

Posts:39
Points:874,080
Joined:Jul 2008
Message Posted: Feb 23, 2013 3:46:21 PM

I asked some of the station attendants, and they have no clue why prices wildly fluctuate, typically daily. I suggest it is about greed and profits.
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fire025
All-Star Author Michigan

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Message Posted: Feb 23, 2013 3:20:48 PM

Speculation & Greed
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Hanski
Champion Author Modesto

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Message Posted: Feb 23, 2013 2:30:24 PM

speculation
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MertieMan
Champion Author Lexington

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Message Posted: Feb 23, 2013 8:27:13 AM

The real reason is the oil industry still has no competition and they can charge what they want, anytime they want. These crooks will continually steal from us as long as our useless government stands by and lets them do so. Boycotts and other actions have literally no effect on these culprits.
I noticed three stations just this week one day go to $3.89 plus per gallon and in less than 24 hours were back to $3.74 plus per gallon. This is gouging and legal stealing at its finest, but is anyone doing anything about it, NO!
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Dennis783
Champion Author Des Moines

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Message Posted: Feb 23, 2013 8:20:23 AM

politicians and a prez who don't realize or care that artificially high gas prices are killing the economy
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gas_phil
Champion Author Sacramento

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Points:609,370
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Message Posted: Feb 23, 2013 1:40:43 AM

Gas station owner wants to buy a yatch.
Gas company exec wants to buy a jet.
:)
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FocusFree
Champion Author Ottawa

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Points:1,452,510
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Message Posted: Feb 22, 2013 11:25:30 PM

Speculation and manufactured fear followed by manipulation by the producers...i.e. shutting down refineries to keep supplies tight
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wbacon
Champion Author Philadelphia

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Message Posted: Feb 22, 2013 4:56:38 PM

THE SO CALLED "environmental movement"
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LeeLavergne
Champion Author Texas

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Message Posted: Feb 22, 2013 2:43:17 PM

speculation
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PithyOpiner
Champion Author Stockton

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Message Posted: Feb 22, 2013 1:41:40 PM

The American public and their insatiable need for gasoline and their love of the automobile.
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BartandLisa
Champion Author Newfoundland

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Message Posted: Feb 22, 2013 11:35:05 AM

Futures price speculators and government disregard for an essential public commodity
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GrumpyCat
Champion Author Alabama

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Message Posted: Feb 22, 2013 11:33:37 AM

Why shouldn't prices rise when you don't cut consumption when prices rise?

If you continue to buy then the price has not yet exceeded the value you receive.

Higher prices stimulate others to invest and compete for your easy money. But when government restricts opportunities to enter the market the only result is higher prices. Without government restrictions preventing others from entering the market an oversupply situation will occur driving prices down and those who can not survive in production on the lower prices will leave. Just as those who do not receive value at the current price should leave.
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OceanArcher
Champion Author Mississippi

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Message Posted: Feb 22, 2013 10:25:34 AM

The key factor ?? Greed and speculation ...
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