Why Are Gas Prices So High? It Is More Complicated Than Just Supply

Daunted by the $4-plus cost for a gallon of gasoline, many Michigan motorists are asking one question: Why?

The answer is far from one word. It transcends the local pump, stretching from diplomats' hotel suites to gas stations in China to hedge-fund offices in New York City to U.S. environmental legislation to rejiggering refineries.

"There's more of a demand for that crude oil in the world market," said Nancy Cain, spokeswoman for AAA Michigan, which helps produce the organization's Daily Fuel Gauge Report.

 

dlin - 3/29/2012 3:49:23 PM

+1 Boost

The biggest factor is the over-printing of US green bill and de-valued dollar. And for OPEC to make money with same purchase power, it automatically leads to high crude oil and gas price!

mini22 - 3/30/2012 12:25:45 AM

+1 Boost

But the article also mentioned the fact that there is a refining problem here in the US. We do not have enough refineries. The combination of this plus global demand, plus the unease in the Persian Golf is causing gasoline prices to spike.The new Pipeline that has been in the news is not going to solve our problems.You cannot drill your way out of this.