CONSPIRACY THEORY? How Convenient, That Gas Prices Are Rising Again JUST Before The Holiday Weekend!

3 words.

Supply and Demand.........

Thats a cop out.

This applies when there is a shortage. However each year the price of gas goes up right before the holidays and in summer. You are not going to tell me that there is a shortage of gas right now because of some refinery broke down just in time or there is war in some war going on somewhere. Most of the Oil US uses is from Canada south American and US itself.

Do you really think that increasing the price will have people stop driving. It could deter a small percentage of the population but the majority will still drive. To top it off, a lot of people have lost jobs so they are not commuting on a regular basis which otherwise would have used more gas. I really think that gas prices need to be fixed and regulated by the government. Afterall this is a natural resource that only a few has the right to exploit and make money out of it.

Two words. Barack Obama

this same thing has been happening every year for as long as most of us can remember. how could barrack obama be responsible?

I believe he was being sarcastic.

Monster, "Supply" would apply to the "Shortage" you mentioned. The other factor, "Demand" is what drives up the price. Investors buy oil futures for the summer months knowing that more fuel will be sold, expecting the price will go up.

If Apple is expected to have an increase in sales due to a product launch (think ipad) investors will buy shares of Apple. If the product launches succesfully, the market will react and those investors will make a profit. This is how the market works.

Understand?

BondMI6 is absolutely correct. It is supply and DEMAND. In the summer driving months there is more DEMAND and people are willing to pay more. If you don't like it buy an electric car or a bike or some good walking shoes.

And to answer 001's question "are these vultures the most heartless human beings on the planet?" Well, YES in a way. Capitalism is inherently heartless. Self interest motivates works and innovation. For instance, everyone posting on this site is basically an unpaid employee of yours (Autospies.com), making you money and generating page-views that you profit from. I suggest you open your big heart (and bankroll) and pay some cash dividends 001!!!

I believe it has less to do with a board room decision, and more to do with artificial inflation do to stock trading. The whole reason why the gas prices rose and crashed before was because everybody was thinking it was a safe investment because technology stocks and the housing market was too risky. It artificially rose until that over inflated bubble popped. I doubt there is a board room somewhere controlling the prices because they are out buying new summer homes/yachts.

Just think about it... if you're going to invest in gas, why not invest in it just before the long weekend? Lots of people are thinking this way, and that's what drives the price up.

Joe Limon is correct.

Im sick of paying these high prices for gas when i first started driving gas was only .89 cents now its above $3.00 thats almost 3x as much as gas cost in 93 and the cars it fuels prices have not risen that much or that fast.

Doesn't really work that way. You didn't account for inflation.

Inflation effects the entire economy not just one segment.

What does that have to do with it?

The reason I mentioned inflation was because you mentioned that gas cost 3 times as much (from when gas was 89 cents) without mentioning that you probably make 3 times the amount of money now (due to inflation) than you did way back when the gas was 89cents. That kinda makes it a wash.

When I started driving in 1997, gas was 89 cents..

Actually according to the US Bureau of Labor Statistics, factoring in inflation, 89 cents in 1997 is equal to $1.21 in 2010...

Tell me again how that equals 3x?

I said probably 3 times. And all I really wanted to do was have someone factor in inflation.

And gas wasn't 89 cents a gallon in 1997 (gas was more like a $1.20/Gallon in 1997). Can you point me to your source of that information? Here's mine: http://www.eia.doe.gov/petroleum/data_publications/wrgp/mogas_history.html

So gas should be $1.20 ($1.50 is more accurate) if the gas prices followed inflation. This makes Big Oil look even worse than they are. Gas prices have gone up at almost double the rate of inflation. And there are folks here defending the gas companies. LOL! Sad.

Just to answer you, the data shown for the Texas region only goes back to 2000. If you find historical data from 1997 that would be nice. Sadly since I can't find any either what I'm going on is anecdotal from what I remember. I live in the South Texas area where gas prices were constantly cheaper by a good bit than the rest of the nation. Like I said, I remember some of the gas wars in my area and only paying 89 cents a gallon. I also started driving in 1997.

However, regardless of the historical price inflation has only averaged 35% not 300% which is almost a ten fold difference regardless of the number being used.

Has there ever been cheap gas in the summer in the last few years?

It's not a cop out uaw, it's called economics....Google the term sometime mate........

It's called maximizing profits without any regard for the consumer (and their financial situations). The oil companies will make Billions in profits either way. It's just that raising gas prices makes the rich shareholders happy and richer. And isn't that what it's all about? Making wealthy shareholders wealthier

I'm sorry but America is the only place where you will find normal individuals defending corporations and rich millionaire shareholders. LOL!!!

Simplest solution for the whiners, next year fill your car up a few weeks before Memorial day. Then ride your bike as much as possible to offset fuel usage until gas prices come down again. If EVERYONE did this, you wouldn't see the prices rise, rather they would fall.

If you have put yourself into a position where you NEED a car, that is your own fault. If you are traveling by automobile over the Memorial day weekend and are bitching, shame on you. You are part of the problem you are complaining about since you are proving there is demand even at higher prices. Those not complaining are exempt from ridicule.

It is what it is an excuse to print thier own money during the summer and holidays. Basicly a cop out.

"If you have put yourself into a position where you NEED a car, that is your own fault. " - Shredmo

- Like being born in an area where public transportation isn't available. Yeah.. that really is that person't fault. Guess they can always move (assuming they have the money to move, lol!) . And like I responded in another reply; A bicycle isn't always an option.

One doesn't put themselves in the position of where they were born. I'm talking about the whiners that choose to use a car everyday, then bitch about gas prices. It is bike to work week and i saw (2) other cyclists on the trails during my 6 mile commute in a town of 40,000. Come on. Can't bike? Most people are too lazy.

OK I got you. No problem. I actually been taking the train to work lately.

Bond m16 You need to google OPEC.....

and you will see how these oil producing nations decide how to control the price of crude oil and ultimatly gas as well by deciding how much oil they want to produce and release to the market inturn maxing out top dollar for a barrel of oil.

corrupt business and nature working hand in hand, but I'm just assuming.

THis is no conspiracy; just let the system work. Separately, gas taxes should be raised ~$2/gallon and then forget about all this CAFE-regulated MPG nonsense. The market will take care of all those objectives, and such an action will address also several other major problems without other government intrusions. Too bad it's politically DOA.

That's sound good. Force people into paying more for gas (even if they are poor and are barely making ends meet as it is).

I guess you know now why that idea was DOA.

sorry someone who owns a car isn't poor and they're not rich either. if you can't afford gas, then keep your car parked or use the public transportation system. most civilized countries charge enviromental friendly gas taxes except of third world countries and some others who pretend to be sooo green, but actually don't give a shit as soon as they sense an impact on their economy. sad but true

Someone who owns a car can’t be poor? LOL!! Not true at all dude. There are cars that cost $200 (used). And there are people who live in that same $200 car. And you wouldn’t call them poor?

Poor People (some not all) can afford gas now. But it's unreasonable to expect them to pay European gas prices here in the U.S all of a sudden. Where are they going to get the money from?

And oh yeah. Not everyone has access to public tranportation. The bus station could be miles and miles away from where they live. What are they (poor folks) supposed to do then? Buy a Condo in the city?

^ Uh, ride a bike for transport. Even if they live in the car, which must be common based on your insight, they could have a bike too. I have ~10 bicycles. Several of them I got for free.

A bicycle isn't always an option. You can only ride a bike so far. What if they live like 30 miles away from the job? And what about rain/snow and inclement weather? LOL! What if its 90 degress outside? Who wants to arrive at work sweaty and stinking? And depending where they live, they may not be able to ride to work using back roads only, the major highway might be the only option (they dont allow bicycles on highways). And what if the person has a disabitlity preventing them from riding a bike. You seem to think that everyone is in the situation that you are in?

Riding a bike isn't always an option. It's an option if you live in the city or live close to work. But if you don't? A bicycle isn't an option. Tell me you didn't think that everyone has the option of riding a bycycle to work?

Not all cities have a viable public transportation so raising the tax on gas ideal will not fly, also buy doing so you raise the price of everthing else from a pair of socks to aircraft since most thing are trucked in to stores factories ect ect and are already expensive becuase gas is already historicly high. example when you purchase a car the destenation charge is charged to you becuase of the cost of tranporting the car/truck and gas to do so.

"If you have put yourself into a position where you NEED a car, that is your own fault. " - Shredmo

- Like being born in an area where public transportation isn't available. Yeah.. that really is that person't fault. Guess they can always move (assuming they have the money to move, lol!) . And like I responded in another reply; A bicycle isn't always an option.

Surely you have more excuses Lexsucks?

Excuse? LOL! For some reason I doubt that you've ever interacted with poor people in your entire life. If you did you'd be more compassionate.

Shredmo... you cant ride a bike in the Michigan winter or take your newborn to the doctor waitng for a bus outside when the temp is -10.

Since this is getting personal, I live in Iowa and ride my bike year round to work even in -25°f temps. I don't think being rich or poor has anything to do with it. Perhaps knowing that I don't have to do it makes some sort of difference.

" I live in Iowa and ride my bike year round to work even in -25°f temps. I don't think being rich or poor has anything to do with it. Perhaps knowing that I don't have to do it makes some sort of difference."

- Do you honestly think that anyone here believes that? What next? You ride the bike in 12"+ of snow, and through hail and sleet storms. All while you have a car at home that could be used. You must think we're fools. LOL!!

I do have cars that I could use; not enough time for both passions. I'd rather drive my car for fun and ride whenever time allows. For your info, at -15°f the lube in your free hub begins to gel. This creates a brief neutral sensation if you back pedal. 6-7" of new snow is the limit for street cycling due to ruts created by automobiles. Fresh, non rutted snow can be ~10" before it becomes difficult to navigate. I have Nokian studded tires for my Cannondale F500 commuter. Sram gripshift is much more reliable below zero temps than Shimano rapid fire on a MTB winter commuter. What is not to believe?
I am seriously not shitting you. On this forum, cycling is not something to brag about. I'm sure most people here loath cyclists such as myself.

Anyone who sees someone riding a bicycle in the snow, Probably thinks that the person is crazy. During Jan and Feb, I see zero people riding bicycles here in NY. And for good reason. But hey... if its good for you, then who am I to say anything about it?

It's not a conspiracy when it's the truth. It's all about the money. Price of crude oil has been dropping in the last few weeks despite the BP oil spill. Living in Canada we have higher than average gas prices.

In Ontario I am paying about $4 a gallon...for regular 87 octane.

They have a break down of what each dollar goes to when you get gas...and the large majority goes to the government. So they are sure as hell not going to do anything to stop gas prices from going up.

There is a boat-load of reserve oil available so the supply and demand excuse just doesn't cut it.

It's all about the almighty dollar, and since people need gas to go away on a long weekend they will set the price to what ever the hell they want.

Prices per barrel dropped today, and has been in a decline the last 2 weeks. For prices to go up at the pump makes no sense because supply and demand doesn't come into play until the demand actually increases, right? So they are "predicting" demand buy raising gas prices, knowing full well that people will pay the additional 25 cents, regardless. It's market manipulation through collusion of market participants - just because people can afford to pay the prices doesn't mean that it's right for all petrol refiners to agree to raise prices together. In a truly fair "supply and demand" market, you will have vendors sell at the lowest price possible to win market share, not fix the market so they can sell at the highest price possible without fear that a lower marketer will steal market share.

1. In my area (not a small one at that), mass transit costs have just gone up 25%. Over the past 5 years, they have gone up 20% total, not including the most recent, exorbitant, hike---while also cutting service. Yes you read that correctly. Most of you can surmise my metro area by now.

I live 7.1 miles from my job, have a train station across the street from my house, and down the block from my office----and sit in almost 35 minutes a day in traffic to get to/from work. IT COSTS ME LESS TO DRIVE THAN TAKE MASS TRANSIT.

When the government controlled public transportation systems raise their prices, the hike in holiday/summer gas still is the cheaper alternative for me. If a majority of the cost of gas goes to the government, why the hell wouldn't they raise the cost of public transit? They've got their hands in both pockets, while the average american can barely afford health coverage.

I have no choice but to pay the money it costs me to go to work to pay my medical/necessities/luxuries/and to get back to work---no matter the avenue. I couldn't imagine living 70 miles from work like some do, in places with no effective mass transit. Then again, if I lived 70 miles away from my job in NJ, I would be paying over 400 a month to get to work. I'd probably just pay the high gallon cost as i do today.

edit: If I lived 70 miles away from my job in NJ, I would be paying over 400 a month FOR THE TRAIN to get to work.

I know your pain, within the past 5 years the cost of our transit system has doubled. They are wasting their money buying brand new gray hounds and expensive hybrid buses while cutting back the amount of transit routes.

It isn't quite that simple.

Gasoline retail prices are high now, because crude spot prices were high a month ago. There is a lag between crude prices and gasoline prices due to refinery throughput. Generally the rule of thumb is that the crude spot price reflects the month to 6 week futures gasoline price. As a note: those who thinks about this will realize that this starts to make the whole picture very complicated- while gasoline is a specific type of demand, crude has a sort of "amalgamated demand" structure.

About 6 weeks ago, crude was at $86.00 per bbl- the highest it has been all year I believe.

One last thing: shortage is the wrong word- or at least an incomplete one when describing this situation. Shortages ONLY exist were governments engage in price setting. In markets that are allowed to function, the price rises until supply equals demand and the market clears. What one really means is a shortage at a price- there is no shortage to the general market.

Another misconception: the oil companies do not have some magical dial with which they control the oil price.

Last one: oil prices in real terms (inflation has been removed- as opposed to nominal) are relatively constant through time.

It all makes since until you add the OPEC facto into the mix.

I loved how after Bush was elected, price of gas started rising. Until about 3 months before the next election. Then 3 months after the election, it starts rising again, even faster. Then 3 months before the 2006 elections when repubs were in trouble, prices start falling again. 3 months after the election, they start rising faster than ever. And lookie here, summer 2008, about 3 months before the 2008 elections, prices start falling big time.

It's all a scam and we're the suckers

It's summer time and gas is always higher these months- get over it.
Course, maybe you'd like to pay what the rest of the world pays for gas......

That's the key. Bend over and take whatever they give you. And if you don't like it, compare yourself to who’s getting the shaft even worse. That my friend sounds like a brainwashed mind. It’s ok to get shafted as long as other folks are getting shafted worse. That is exactly how corporations want people’s brains to behave.

Screw the gas companies. I am buying a Volt or a Leaf and with my short commute, will never have to buy gas again.

Shortly after that, you can find me on PowerCompaniesSuck.com where I'll be complaining about the high cost of electricity.