Demand For Gas Lowest Since 1997 - So Why Are The Prices So High?

Gas prices are off to a fast start in 2012. The national average for a gallon of regular gasoline is up more than 8 percent since the end of 2011, rising from $3.25 per gallon to $3.52, according to new data released by the U.S. Energy Information Administration.

While gas prices tend to rise through the first half of the year, this is the earliest the average price per gallon has breached the $3.50 mark. If this pace continues, the national average should hit $4 a gallon by May, if not sooner. The last time the average price did so in the U.S. was summer 2008, when the price of oil hit $140 a barrel. Last year gas prices approached $4, hitting an average of $3.98 in April, before falling.

 

monster - 2/15/2012 11:57:29 AM

+3 Boost

Because the price of oil has increased and US is not the only country in the world that uses oil.

BrownsGoBack - 2/15/2012 9:46:23 PM

0 Boost

Why doesn't Iran have any refining capacity? They need gasoline, don't they?

Joe_Limon - 2/15/2012 11:59:54 AM

+2 Boost

Because they have to make up for lost profits by increasing their markup?

M5twinturbo - 2/15/2012 12:43:37 PM

+1 Boost

Chinese demand
Uncertainty in Iran

enthusiastx11 - 2/15/2012 12:52:10 PM

+1 Boost

really? read a paper in the past decade?

MASSIVE growing demand in the emerging world....from china to brazil to india.

MASSIVE instability in iran...the world's second largest reserves of oil after saudi arabia.

hmmmm....maybe that could affect prices?

enthusiastx11 - 2/15/2012 4:27:45 PM

-2 Boost

china's massive growth in consumption of all raw materials including oil is bullshit?

israel on the verge of a military strike on iran bullshit?

iran having the second largest reserves of oil on the planet bullshit?

anything constructive to contribute you troglodyte?

topneuro - 2/15/2012 3:11:08 PM

+1 Boost

The Oil Elves Arab Sheiks OPEC feel threaten by Hybrids and EV's?

Steve - 2/15/2012 6:13:05 PM

0 Boost

The price of gasoline is not affected by the principle of "supply and demand." The principle of an "inelastic demand" applies, due to MINOR fluctuations in global demand.

Dr550 - 2/15/2012 8:26:37 PM

0 Boost

Someone has to pay for the Rothchilds war against Iran.

dlin - 2/17/2012 10:05:35 AM

+3 Boost

I was shocked nobody mentioned that US dollar is the most manipulated and de-valued currency in the world, which is the main/real reason.